• Pfuma REIT’s fully subscribed US$25 million private placement reflects selective, risk-aware capital allocation
• Investor interest is concentrated in asset-backed, US-dollar income streams, highlighting a preference for structured yield and downside protection amid currency instability and policy uncertainty
• The transaction reinforces the growing role of REITs as defensive instruments in Zimbabwe’s capital markets

Harare - The Pfuma Fund Real Estate Investment Trust (REIT) has achieved full subscription of its US$25 million private placement, a result that comes at a time when foreign direct investment into Zimbabwe remains subdued and capital formation increasingly selective.

According to the latest circular, the offer, which opened on 11 December 2025 and closed on 23 January 2026, attracted commitments equal to 100% of the units offered to the public at US$0.10 per unit, raising US$25.04 million against a US$25 million target.

Together with seed assets injected by the promoter valued at US$22.1 million, Pfuma’s initial capitalisation reaches approximately US$47.1 million ahead of its listing on the Victoria Falls Stock Exchange (VFEX).

On the surface, the outcome appears to signal confidence in Zimbabwe’s listed property sector ,however the transaction offers a more nuanced insight into the behaviour of capital in a constrained economy, money is not broadly returning, but it is concentrating  seeking safety in structure, hard assets and dollar-denominated cash flows.

Zimbabwe’s investment climate has been shaped by currency instability, policy uncertainty and elevated operational risk, factors that have weighed heavily on long-term investment decisions.

Foreign direct investment has struggled to gain traction, while local capital has often favoured short-term or defensive positioning. Against this backdrop, Pfuma’s fully subscribed raise stands out not as a signal of broad-based optimism, but as evidence of conditional confidence.

Private placements, by their nature, draw participation from institutional and sophisticated investors rather than the retail market.

The success of Pfuma’s offer suggests that these investors remain willing to commit capital  but only where risk is tightly managed and returns are underpinned by tangible assets. In this sense, Pfuma’s appeal lies as much in its structure as in its underlying properties.

Real estate  particularly income-generating property with rentals denominated in United States dollars  has continued to function as a hedge against macroeconomic volatility.

For investors wary of operational exposure in productive sectors, property-backed instruments offer predictability. REITs further enhance this proposition by pooling assets, professionalising management and providing an exit mechanism through public listing.

Pfuma’s subscription success is not an isolated phenomenon ,it sits within a small but increasingly dynamic REIT ecosystem in Zimbabwe.

The Tigere Property Fund REIT  the country’s first listed REIT on the Zimbabwe Stock Exchange (ZSE)  has emerged as a noteworthy example of how listed real estate can perform even amid broader economic headwinds.

On the 23^rd of January 2025 Tigere  broke into the ZSE’s Top 10 index by market capitalisation, valued at around US$132.5 million, placing it alongside long-established counters such as Delta and Econet  a remarkable achievement for a property-focused vehicle.

Its portfolio, including Highland Park and Chinamano Corner, has maintained 100% occupancy, generating stable US dollar rental yields and helping deliver consistent revenue growth even in a tight economic environment.

Another local example comes from Revitus Property Opportunities REIT. While smaller and less visible than Tigere, Revitus has demonstrated the operational viability of the REIT model by posting profits and declaring dividends in its early quarters of trading, a rare achievement in Zimbabwe’s equity market where many counters struggle to sustain formal distributions.

At the same time, the listing of Eagle REIT on the VFEX marked the first instance of a REIT trading on Zimbabwe’s dollar-settled exchange, expanding the instruments available to capital markets and signalling confidence among developers in using securitised property vehicles to finance infrastructure and real estate projects.

These examples illustrate a broader truth, REITs have begun to carve out a credible space within Zimbabwe’s capital markets, offering both diversification benefits and a mechanism for investors to earn yield without owning or managing property directly.

The timing of Pfuma’s offer reflects a broader shift in investor preference. Direct property ownership in Zimbabwe remains capital-intensive, illiquid and exposed to tenant risk and infrastructure constraints. REITs, by contrast, allow investors to access property exposure while spreading risk and avoiding day-to-day operational complexity.

However , commercial real estate fundamentals remain uneven, with oversupply in some urban nodes and persistent affordability pressures for tenants. Vacancy risk, maintenance costs and valuation sensitivities continue to shape returns.

The interest in Pfuma, therefore, should be read as a vote of confidence in asset-backed income streams, not a blanket endorsement of the wider property market.

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