• Pfuma issued 69.4 million units to settle the US$6.94 million acquisition
• Cork Corner is fully occupied with a 4.58-year weighted average lease expiry
• Management estimates annualised rental income per unit will increase 16.71%

Harare - Pfuma Fund, a Real Estate Investment Trust (REIT) in Zimbabwe that invests in commercial and retail properties has completed its US$6.94 million acquisition of Cork Corner in Avondale, issuing 69.4 million additional units to the seller and increasing the fund’s units in issue by 14.72%.

The additional units increase Pfuma’s issued units from 471.35 million to 540.75 million, diluting the ownership of existing unitholders by 12.84%. Management estimates that the acquired property will increase rental income per unit by 16.71% on an annualised basis.

Cork Corner became part of the portfolio with effect from 19 August 2026. The property, located at the intersection of King George and Cork roads in Avondale, has 1,203 square metres of gross lettable area and is fully occupied.

Its weighted average lease expiry stands at 4.58 years, while the disclosed gross yield is 7.8%. The acquisition will begin contributing to Pfuma’s reported performance from the third quarter of the 2026 financial year.

The transaction was already incorporated into Pfuma’s portfolio strategy before its listing on the Victoria Falls Stock Exchange. The fund’s prospectus disclosed the acquisition price and the proposed issuance of 69.4 million units at US$0.10 each. Completion therefore moves an identified pre-listing asset into the operating portfolio.

Settlement through units leaves Pfuma’s cash available for the development programme funded through its capital raise. The fund entered the market with a pipeline that includes Eastlea, Chivhu, Yellowstone and Silverbrook, creating competing calls on the capital available for portfolio expansion.

The Cork Corner transaction increases the number of units entitled to Pfuma’s future distributions. The acquired rental stream consequently has to compensate for the additional claims created by the 69.4 million units.

Management’s annualised estimate places rental income per unit 16.71% above the level before the acquisition, after accounting for the enlarged unit base. That projection provides a useful starting benchmark for the transaction, although rental income per unit does not capture the full economics available to unitholders.

Cork Corner carries a 7.8% gross yield. Property operating expenses and fund-level costs will reduce the income available for distribution, leaving distributable income and distributions per unit as stronger measures of the acquisition once the asset enters Pfuma’s accounts.

The 4.58-year WALE gives Pfuma contractual rental visibility across the acquired property. Full occupancy also removes an immediate requirement to lease vacant space before the asset contributes to rental income.

The purchase nevertheless increases Pfuma’s exposure to quick-service restaurants and casual dining. Portfolio concentration will change as the remaining development pipeline is completed and additional tenants and property uses enter the fund.

Pfuma’s decision to issue equity also changes how the acquisition should be assessed against its development programme. The fund has acquired an operating asset without deploying US$6.94 million of cash into the purchase. That leaves capital available for projects carrying construction, leasing and completion requirements.

Several pipeline projects carry prospective gross yields above Cork Corner’s 7.8%. Those yields remain development assumptions until the properties are completed, occupied and producing rental income. Cork Corner enters the portfolio with tenants already in occupation and therefore begins contributing without the same construction and initial leasing period.

The transaction consequently creates two measurable capital allocation outcomes.

From Q3, Cork Corner has to deliver sufficient rental and distributable income across the enlarged 540.75 million-unit base. Over a longer period, Pfuma also has to generate adequate returns from the cash retained for its development pipeline.

The 12.84% dilution is already effective. The 16.71% increase in annualised rental income per unit remains management’s estimate until Cork Corner’s contribution enters reported results. Q3 and subsequent distribution periods will provide the first evidence of whether the acquired income compensates existing holders for the additional units issued, while completion and occupation of Pfuma’s remaining developments will establish the return generated from the capital preserved by settling Cork Corner in equity.

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