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1. What is Skye Shelter Fund?

Skye Shelter Fund is an alternative investment, which pools funds for the primary purpose of investing in income-generating real estate, such as residential homes, shopping malls, offices, warehouses etc while taking advantage of tax exemptions.
A mutual fund/investment vehicle like the Skye Shelter Fund (Skye Shelter) which is set-up for investing in real estate is called a “Real Estate Investment Trust" (REIT). Skye Shelter is Nigeria’s first publicly quoted REIT.

2. What are the types of REITs?

  • Equity REITs: These are REITs which invest in/own properties. Revenue generated is primarily from rents received. They provide investors prospective growth from property appreciation and long term capital appreciation when properties are sold.
  • Mortgage REITs: These REITs invest in existing mortgages or loan money for mortgages to real estate owners/ real estate projects. Revenue generated is primarily from the interest earned on the mortgage loans.
  • Hybrid REITs: These REITs are a combination of both Equity and Mortgage REITs.

3. What does the Skye Shelter Fund invest in?

The Skye Shelter Fund is dedicated to the development and/or acquisition of high quality stock of properties (residential estates, commercial properties and other investment properties) in select locations across Nigeria.

In addition, Skye Shelter will make opportunistic investments in joint venture developments. This will be done in partnership with reputable developers on a case-by-case basis as the Trustees and the Fund Managers may deem fit.

4. What are the unique features of The Skye Shelter Fund as a REIT?

  • It invests 75 per cent directly in real estate which may include: residential apartments, shopping malls, office blocks, hotels, warehouses and industrial property;
  • It invests 25 per cent in real estate related investments which may include: mortgages, real estate backed securities, real estate related equities. This portion includes a 10% allocation to cash for liquidity purposes.
  • It pays out 80 per cent of income, which includes rental income, income from fixed income investments and income from sale of properties. Skye Shelter distributed to its subscribers for every unit held, the sum of N4.65k in 2008 and proposes N7.00k in 2009.
  • Income is exempt from Taxation in Nigeria.
  • It is organized as a corporate entity/trust which is quoted on the Nigerian Stock Exchange. It has 20,000,000 units of shares at N100.00 per value. It is managed and sponsored by Skye Bank Plc; Its Trustees are PHB Capital & Trust Limited and its external real estate adviser is Ubosi Eleh & Co.

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