Zambia’s property market reached a significant milestone on 4 July 2025 with the listing of Real Estate Investments Zambia (REIZ) on the Lusaka Securities Exchange — the country’s first ever listed Real Estate Investment Trust (REIT). Kukula Capital was proud to play a role in this landmark transaction, which opens a new chapter for both Zambian real estate and domestic capital market participation.
A century in the making
REIZ’s origins trace back to the 1920s, when the Northwestern Rhodesia Co-operative Society was established by a group of farmers. Nearly a century later, that institution has been transformed into a modern, regulated investment vehicle — one that gives everyday Zambians a straightforward, accessible route into institutional-grade property investment for the first time.
What REIZ brings to the market
As a REIT, REIZ is legally required to distribute at least 80% of its profits to investors as dividends — a structure that delivered a $2.2 million dividend to shareholders in 2024. The trust currently owns 11 properties, predominantly in Lusaka, encompassing 95,285 square metres of rentable space — almost double its 2023 footprint. Its portfolio includes some of the city’s most recognisable commercial assets: Arcades Shopping Centre (valued at $28.5 million), Lewanika Mall ($23.7 million), Jacaranda Mall ($14.1 million), and Acacia Park, an undeveloped site valued at $23.95 million. Total portfolio value grew from $31.1 million to $107.6 million in a single year.
Operationally, the business has been transformed. Rental income doubled to $6.1 million in 2024, with operating margins expanding to 63% from just 30% four years ago. A $4 million renovation of Arcades Shopping Centre cut vacancies by 19%, tripled monthly income from the asset, and delivered a 10% net yield.
An ambitious growth agenda
REIZ’s management has set bold targets: $500 million in assets under management by 2027, with a long-term ambition of $1 billion. The trust has already identified 18 transactions across 24 properties worth approximately $490 million, with a focus on retail assets in Lusaka and selective exposure to Kitwe, Ndola, and Chirundu.
To fund this growth, REIZ has introduced preference shares offering fixed returns of 12% per annum in Kwacha and 7.5% in US dollars, with convertibility at a 15% discount to market from year three — a structure designed to attract both domestic and international capital with predictable income profiles.
Kukula’s perspective
Zambia’s property market has long been underserved by formal capital. Urbanisation, demand for quality retail and office space, and a maturing legal framework — including zero rental income tax for REITs and no dividend tax for local investors — have created the conditions for a structured property investment market to develop. REIZ’s listing is a direct expression of that opportunity, and Kukula Capital is proud to have contributed to it.