Key Takeaways
- • Two Rivers International Financial and Innovation Centre (Trific) has partnered with Nabo Capital to establish a liquidity fund capitalized at Sh517.8 million ($4 million) that will buy out investors exiting the Sh4.8 billion Income Real Estate Investment Trust (I-Reit), eliminating forced-seller risk and illiquidity constraints.
- • The liquidity fund functions as a market maker, providing immediate counterparty availability for small-ticket exits when secondary market buyers are unavailable, allowing investors to liquidate positions without significant valuation loss.
- • The I-Reit is Kenya's second dollar-denominated real estate investment trust, launched two months after Africa Logistics Properties raised Sh4.5 billion ($34.6 million) through a restricted Industrial Property Reit, signaling growing institutional appetite for African real estate instruments.
- • Centum Investments Plc, Trific's parent company, applied lessons from its own share buyback program (closed March 31, 2026, repurchasing 10.83 million shares) to design the liquidity fund structure, demonstrating cross-portfolio capital allocation discipline.
Summary
Two Rivers International Financial and Innovation Centre has addressed a critical structural weakness in its dollar-denominated real estate fund by creating a dedicated liquidity mechanism in partnership with Nabo Capital. The Sh4.8 billion Income Real Estate Investment Trust (I-Reit) now benefits from a Sh517.8 million ($4 million) liquidity fund that acts as a permanent market maker, resolving investor concerns about illiquidity—the inability to quickly convert assets into cash without material loss.
According to Centum Investments Plc CEO James Mworia, the fund addresses a fundamental institutional investor concern: the risk of capital entrapment. "There's certainly liquidity risk and sometimes an investor fears getting stuck with an asset. We have created a liquidity fund with the I-Reit manager, which acts as a market maker such that once an investor offers their units for sale and they do not get a buyer; the role of this fund will be to buy back those units." This structure ensures investors can exit positions promptly without forced-seller discounts when secondary market demand is insufficient.
The I-Reit's capitalization follows Africa Logistics Properties' launch of a restricted Industrial Property Reit valued at Sh4.5 billion ($34.6 million) just two months prior, positioning Kenya as an emerging hub for dollar-denominated real estate securitization. Both instruments target institutional investors seeking African real estate exposure through liquid, regulated vehicles.
Centum's design of the liquidity fund draws directly from its institutional capital management experience. The parent company's share buyback program, which closed March 31, 2026, repurchased 10.83 million shares and provided operational and structural templates applicable to the I-Reit liquidity mechanism. This cross-portfolio approach demonstrates how equity buyback disciplines can be adapted to enhance real estate fund infrastructure and institutional appeal.
According to Centum Investments Plc CEO James Mworia, the fund addresses a fundamental institutional investor concern: the risk of capital entrapment. "There's certainly liquidity risk and sometimes an investor fears getting stuck with an asset. We have created a liquidity fund with the I-Reit manager, which acts as a market maker such that once an investor offers their units for sale and they do not get a buyer; the role of this fund will be to buy back those units." This structure ensures investors can exit positions promptly without forced-seller discounts when secondary market demand is insufficient.
The I-Reit's capitalization follows Africa Logistics Properties' launch of a restricted Industrial Property Reit valued at Sh4.5 billion ($34.6 million) just two months prior, positioning Kenya as an emerging hub for dollar-denominated real estate securitization. Both instruments target institutional investors seeking African real estate exposure through liquid, regulated vehicles.
Centum's design of the liquidity fund draws directly from its institutional capital management experience. The parent company's share buyback program, which closed March 31, 2026, repurchased 10.83 million shares and provided operational and structural templates applicable to the I-Reit liquidity mechanism. This cross-portfolio approach demonstrates how equity buyback disciplines can be adapted to enhance real estate fund infrastructure and institutional appeal.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.