Draft Top Services REIT Prospectus

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Draft Top Services REIT Prospectus THIS DOCUMENT IS IMPORTANT AND SHOULD BE CAREFULLY READ AND UNDERSTOOD BY PROSPECTIVE INVESTORS. IF YOU ARE IN ANY DOUBT AS TO THE CONTENTS OF THE PROSPECTUS OR THE ACTION TO TAKE, PLEASE, CONSULT YOUR FINANCIAL ADVISER, SOLICITOR, ACCOUNTANT, TAX CONSULTANT, BANK MANAGER OR ANY OTHER PROFESSIONAL ADVISER FOR GUIDANCE IMMEDIATELY. THIS PROSPECTUS HAS BEEN SEEN AND APPROVED BY THE DIRECTORS OF FIRST ALLY ASSET MANAGEMENT LIMITED AND THEY JOINTLY AND INDIVIDUALLY ACCEPT FULL RESPONSIBILITY FOR THE ACCURACY OF ALL INFORMATION GIVEN AND CONFIRM THAT, AFTER HAVING MADE ALL ENQUIRIES WHICH ARE REASONABLE IN THE CIRCUMSTANCES, AND TO THE BEST OF THEIR KNOWLEDGE AND BELIEF, THERE ARE NO OTHER FACTS, THE OMISSION OF WHICH WOULD MAKE ANY STATEMENT MISLEADING. The rental yield on real estate portfolio held by the REIT is not equivalent to the yield of the units and the value of real estate may fluctuate. “FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, PLEASE REFER TO “RISK FACTORS” ON PAGES 19 - 21 (Authorised and Registered in Nigeria as a Real Estate Investment Trust Scheme) Offer for Subscription Of 20,000,000 Units of N1,000 each at par Payable in full on Application Fund Manager RC: 1204564 Fund Sponsor Trustee Custodian RC: 268444 RC: 322271 RC:125097 Lead Issuing House and Financial Adviser RC: 1191465 Joint Issuing Houses RC: 617327 RC: 217005 RC: 189502 Futureview Financial Services Limited Cowry Asset Management Limited Greenwich Trust Limited Application List Opens: Wednesday, February 1, 2017 Application List Closes: Friday, March 10, 2017 THIS PROSPECTUS AND THE UNITS WHICH IT OFFERS HAVE BEEN REGISTERED BY THE SECURITIES & EXCHANGE COMMISSION. THE INVESTMENTS AND SECURITIES ACT NO 29, 2007 (“THE ACT”), PROVIDES FOR CIVIL AND CRIMINAL LIABILITIES FOR THE ISSUE OF A PROSPECTUS WHICH CONTAINS FALSE OR MISLEADING INFORMATION. THE REGISTRATION OF THIS PROSPECTUS AND THE UNITS WHICH IT OFFERS DO NOT RELIEVE THE PARTIES FROM ANY LIABILITY ARISING UNDER THE ACT FOR FALSE OR MISLEADING STATEMENTS CONTAINED OR FOR ANY OMISSION OF A MATERIAL FACT IN THE PROSPECTUS. This Prospectus is dated January 19, 2017 Table of Contents 1. DEFINITION OF TERMS -------------------------------------------------------------------------------------------------------- 3 2. ABRIDGED TIMETABLE -------------------------------------------------------------------------------------------------------- 5 3. SUMMARY OF THE OFFER -------------------------------------------------------------------------------------------------------- 6 4. CORPORATE DIRECTORY OF THE FUND MANAGER -------------------------------------------------------------------------------------------------------- 9 5. PROFESSIONAL PARTIES TO THE OFFER ------------------------------------------------------------------------------------------------------- 10 6. THE TSL REIT ------------------------------------------------------------------------------------------------------- 12 6.1 Introduction to the REIT ------------------------------------------------------------------------------------------------------- 14 6.2 Investment Objectives ------------------------------------------------------------------------------------------------------- 14 6.3 Investment Policy ------------------------------------------------------------------------------------------------------- 14 6.4 Investment Outlet ------------------------------------------------------------------------------------------------------- 15 6.5 Investment Incentives ------------------------------------------------------------------------------------------------------- 15 6.6 Investment Strategy ------------------------------------------------------------------------------------------------------- 15 6.7 Investment Decisions ------------------------------------------------------------------------------------------------------- 16 6.8 Exit Strategy ------------------------------------------------------------------------------------------------------- 16 6.9 Investment Approach ------------------------------------------------------------------------------------------------------- 16 6.10 Investment Restriction ------------------------------------------------------------------------------------------------------- 17 6.11 Financing Policies ------------------------------------------------------------------------------------------------------- 17 6.12 Borrowing Policies ------------------------------------------------------------------------------------------------------- 17 6.13 Disposal Policies ------------------------------------------------------------------------------------------------------- 17 6.14 Valuation of Real Estate Assets ------------------------------------------------------------------------------------------------------- 18 6.15 Fee Structure ------------------------------------------------------------------------------------------------------- 18 6.16 Risks & Mitigants ------------------------------------------------------------------------------------------------------- 19 7. The Investment Committee ------------------------------------------------------------------------------------------------------- 22 7.1 Member Profiles ------------------------------------------------------------------------------------------------------- 23 7.2 Investment Committee Responsibilities ------------------------------------------------------------------------------------------------------- 24 7.3 Investment Management ------------------------------------------------------------------------------------------------------- 24 7.4 Membership ------------------------------------------------------------------------------------------------------- 24 7.5 Quorum ------------------------------------------------------------------------------------------------------- 24 7.5.1 Notice of Meeting ------------------------------------------------------------------------------------------------------- 24 7.5.2 Minutes of Meeting ------------------------------------------------------------------------------------------------------- 24 7.5.3 Reporting Procedures ------------------------------------------------------------------------------------------------------- 24 7.5.4 Meeting of Unit Holders --------------------------------------------------------------------------------------------------------25 8. Overview of the Properties 8.1 Asset Portfolio Holders ------------------------------------------------------------------------------------------------------- 26 8.2 Adeniran Ogunsanya Mall ------------------------------------------------------------------------------------------------------- 27 8.3 Apapa Mall ------------------------------------------------------------------------------------------------------- 29 8.4 Cocoa Mall ------------------------------------------------------------------------------------------------------- 31 8.5 Akure Mall ------------------------------------------------------------------------------------------------------- 33 8.6 Valuation of Properties ------------------------------------------------------------------------------------------------------- 35 8.7 Statement of Position of the Sub-lessors ------------------------------------------------------------------------------------------------------- 35 9. TSL REIT Structure ------------------------------------------------------------------------------------------------------- 36 9.1 Structure Diagram ------------------------------------------------------------------------------------------------------- 36 9.2 Property Transfer Structure ------------------------------------------------------------------------------------------------------- 37 9.3 REIT Parties ------------------------------------------------------------------------------------------------------- 38 9.4 TSL REIT Fund Manager Rating ------------------------------------------------------------------------------------------------------- 39 9.5 Deed of Declaration of Trust ------------------------------------------------------------------------------------------------------- 41 10. Financial Forecast ------------------------------------------------------------------------------------------------------- 42 10.1 Statement from Reporting Accountants ------------------------------------------------------------------------------------------------------- 42 10.2 Bases and Assumptions ------------------------------------------------------------------------------------------------------- 43 10.3 Forecast Statement of Financial Position ------------------------------------------------------------------------------------------------------- 45 10.4 Forecast Statement of Comprehensive Income ---------------------------------------------------------------------------------------- 46 10.5 Forecast Statement of Changes Attributable to Unitholders ------------------------------------------------------------------------ 47 10.6 Forecast Statement of Cashflow ------------------------------------------------------------------------------------------------------- 48 10.7 Notes to the Profit Forecast ------------------------------------------------------------------------------------------------------- 49 10.8 Statement of Significant Accounting Policies ---------------------------------------------------------------------------------------------------- 51 10.9 Letter from the Issuing House -------------------------------------------------------------------------------------------------------
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