The main goal of the Fund is to provide our shareholders with stable dividend yield and sustainable growth

About the Fund

The FUND is the first Real Estate Investment Trust in Kazakhstan established in the Astana International Financial Centre REIT launch date: August 2023

Investment Objectives: income and growth via investments in office properties and other leasable real estate The FUND invests in rental income generating properties with high levels of occupancy, quality tenant mix with sustainable business models, medium to upper brackets of lease rates and long- to medium-term contracts. Properties to be operated by a professional facility management and services company.


The Fund Manager

In accordance with the rules of Astana Financial Services Authority, the FUND is managed by the FUND Manager. The FUND Manager is Provident Fiduciary Ltd, a private fund management company registered with the Astana International Financial Center. Provident Fiduciary Ltd. is authorized to design, establish, place and manage a variety of Exempt Funds, including Private Equity, Venture Capital, and REITs (please note that Exempt Funds may only be offered to Professional Clients upon due classification by a fund manager).

More detailed information is presented on the web site of the company – https://fiduciary.kz/

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Management of the fund



Key metrics

Current dividends payout ratio is close to 100%, while regulations require REITs to pay out at least 80% of net income and allow to use up to 20% for various reserves related to maintenance of the FUND’s investment property



Office building «Fortis»

Description

The main asset of the company is office building «‎Fortis»‎ located in Almaty city of the Republic of Kazakhstan. Property Data: an 8-story, Class B+ office building, built in 2021, GBA: 13,500 sqm, GLA: 10,500 sqm

Office building «‎Fortis»‎ is located in the prestigious part of Almaty city, with close proximity to major city throughways and community centers. Well-situated between the city's residential district and the central business district.

The building boasts a whole-floor open-space design, and an open terrace located on its top floor, offering a 360-degree view of the city and a spectacular view of the nearby mountain range. The building provides its tenants with 24/7 access to its facilities, including adjacent large car parking area and sizeable underground parking area. The top floor of the building offers a potential of becoming a central venue for tenant community, entertainment and socializing area.


Key Tenants

“Evrika” Company” LLP – retail distribution of consumer electronics and mobile devices.
“Industrial and medical solutions” LLP and “SOS Kazakhstan” LLP – health care service
“It-logistics Group” LLP - telecommunications industry
“Mariana Mobile Kazakhstan Limited” LLP – mobile devices distribution
MOST IT HUB Almaty Limited – venture capital financing, coworking center
“QALANKZ” LLP – education for children using innovative methods
“Imperator” LLP – yoga center for women

Ventas Employee Gathering and Party

The main rights of the investors (holders of Class B) of the Fund are:

The shares of the FUND can be marketed only to Professional Clients

Every investor must qualify as a Professional Client, Deemed Professional Client, or Assessed Professional Client. Here are the key high-level guidelines for quick self-assessment – you might qualify as:

1) an Assessed Professional Client –
a) as an Individual Client (Natural Person) with net assets of at least $100 000 (one hundred thousand) of investable assets or portfolio of assets held directly or indirectly, excluding the value of the primary residence, AND have sufficient experience and understanding of relevant Financial Products, Financial Services, Transactions and any associated risks. Individual Client will undergo an assessment process that will be conducted by Provident Fiduciary Ltd. PFL will collect and analyze the data, including but not limited to: ID, Passport, CV, residence address confirmation, asset ownership titles, pension account statement, bank and brokerage accounts statements, and etc.
b) as an Undertaking (Entity) possess funds of at least $1 (one) million. For undertakings (entities) PFL will require – incorporation documents, ownership structure, ultimate beneficiaries’ and senior management’s documents (ID, Passport, CV, residence address confirmation), structure of affiliates and subsidiaries, corporate governance manual, organizational structure, treasury and investment department policies and procedures, financial statements, bank and brokerage accounts statements, a statement on a “good standing” of the business, a list of active legal suits, and etc.

2) a Deemed Professional Client – a Larger Undertaking (entity) meeting at least two of the following criteria: total assets of at least $20 (twenty) million, annual turnover of at least $40 (forty) million, possessing own funds of at least $2 (two) million;


Open Interest

Open Interest # Price # of shares
ASK 1 9,000,000 1,000,000
BID 1 - -





FAQ

Who can invest?
In accordance with paragraph 2.2 of the AIFC rules on “Collective Investment Schemes”, Exempt fund is a Collective Investment Scheme the Units of which are Offered in the AIFC only by way of a private placement and only to professional clients with a minimum subscription amounts of 50,000 US dollars.
How do I get the status of a professional client?
In short, AIFC Conduct of Business rules No. FR0005 (COB), provide the following definition of a professional clients:
a) clause 2.4.1. (j) of the COB: a Larger Undertaking (entity) meeting at least two of the following criteria: total assets of at least $20 (twenty) million, annual turnover of at least $40 (forty) million, possessing own funds of at least $2 (two) million;

b) an Assessed Professional Client –
(i) clause 2.5.6. of the COB: if the Undertaking possess own funds of at least $1 (one) million,
(ii) clause 2.5.1. of the COB: as an Individual Client (Natural Person) as per COB 2.5.1. if Individual Client (Natural Person) has net assets of at least $100 000 (one hundred thousand) of investable assets or portfolio of assets held directly or indirectly, excluding the value of the primary residence, AND to have sufficient experience and understanding of relevant Financial Products, Financial Services, Transactions and any associated risks.

More information about the requirements of the AIFC to be considered as professional clients can be found at the following link https://orderly.myafsa.com/api/pdf?articleId=a0001000200020002 .
Can I invest in the Fund's shares as a retail investor?
Yes, you can invest the Fund's shares indirectly through professional participants in the securities market (investment and pension funds, insurance companies, banks, broker-dealers, investment companies, etc.). Thus, the investor indirectly owns the Fund's shares, which are part of portfolios formed by professional market participants.
What is the minimum amount for investment?
The minimum amount for investments is 50,000 US dollars (The requirements of the AIFC can be found at https://orderly.myafsa.com/api/pdf?articleId=a0001000200020002)
How to sell the Fund's shares?
A professional client sends a buyout request to the Fund Manager, who will offer shares to other shareholders of the Fund, or in the absence of interest from shareholders to other current and potential clients of the Fund. If the Fund Manager is unable to sell shares to third parties within 30 days of the notification of the buyout, the offered shares will be purchased on the Fund's balance sheet.
What properties does the Fund own?
As of November 1, 2024, REIT ONE Open-ended investment company Ltd. owns one real estate object – the Fortis Business Center, located in Almaty.

Brief characteristics:
Grand leaseable area – 10,500 sq.m.
Occupancy rate: 100%
Business center classification: B+ Website: http://www.reitone.fund
Which companies rent the property?
Key tenants:
“Evrika“ Company” LLP – retail distribution of consumer electronics and mobile devices.
“Industrial and medical solutions” LLP and “SOS Kazakhstan” LLP – health care service
“It-logistics Group” LLP - telecommunications industry
“Mariana Mobile Kazakhstan Limited” LLP – mobile devices distribution
MOST IT HUB Almaty Limited – venture capital financing, coworking center
“QALANKZ” LLP – education for children using innovative methods
“Imperator” LLP – yoga center for women
How is the property managed?
The property is managed by:
- The Fund Manager, who is responsible for maintaining accurate accounting records, as well as participates in the implementation of investment strategies and management of the Fund's trading activities;
- Property Manager – responsible for the day-to-day maintenance, repairs, security and care of the property.
What taxes are imposed on shareholders' dividends?
According to clause 7 of the article 6 of the Constitutional Law on AIFC, until January 1, 2066, individuals and legal entities are exempt from paying individual and corporate income taxes on income:
- in the form of dividends on the shares of participants legal entities registered in accordance with the current law of the AIFC, or on shares in the authorized capitals of participants-legal entities, registered in accordance with the current law of the AIFC.
Does the Fund plan to purchase other real estate assets?
Yes, the Fund is considering of investing in real estate assets in the medium and long term.
What experience do the employees of the Fund manager have?
The company's employees have significant experience in the investment field. To learn more about the Fund's management, follow the link https://www.reitone.fund/management
What are the advantages of investing in real estate investment funds?
- a simple and comprehensive business model (real estate is leased, and the income received from the rent is distributed among shareholders);
- providing income based on dividend payment. In accordance with the requirements of the regulator represented by the AIFC, real estate investment funds distribute at least 80% of its audited net annual income among the Unitholders;
- AIFC tax regime (zero tax on dividends);
- portfolio diversification;
- transparent and competitive market performance. Shareholders have the right to receive reports on the Fund's activities.
Is it possible to donate or bequeath shares of the Fund?
Yes, provided that the receiving party meets AIFC’s requirements to be considered as a professional client or uses the services of a professional investment consultant.
Where are the Fund's securities stored?
The securities will be held by the independent Registrar of AIFC Exchange - Astana International Exchange (AIX).
Is the property insured?
The property is insured against technogenic factors and natural disasters.
How can I find out the value of one share of the Fund?
The actual price of the share will be posted on the official website of the Fund: www.reitone.fund
Can a shareholder receive dividends on a regular basis?
The Fund Manager has the right to make a decision on the payment of dividends and its frequency. As of November 1, 2024, dividend payments are made on a monthly basis.
How much can I earn?
Profitability depends on many factors: the professionalism of the manager, the fiscal policy of the state, the economic situation in the country and in the world, exchange rates, oil prices and much more. At the same time, the target dividend yield of the Fund to the placement price is expected to be 10%, taking into account the indexation to the US dollar.


Contact Us


Contacts

Address

Astana city, 55/20 Mangilik El av.
office 325, Block 4.1

E-mail

info@fiduciary.kz