By Michael Eboh
Skye Shelter Fund’s Real Estate Investment Trust (REIT) has announced an interim dividend of N3 per unit for its unitholders for its 2010 financial year, thereby, bringing the total dividend to be received by investors to N10 per unit.

The company had initially declared a dividend of N7 per unit for unitholders for the year ended, December 31, 2009.
Meanwhile, the fund manager has also announced plans to diversify into the hospitality sector, through the acquisition of a 25 per cent stake in the construction of Protea Select Hotel, Alausa, Lagos.

According to a statement by the fund manager, Skye Financial Services Limited, the dividend, which is payable August 31, 2010, is the Fund’s second, following its listing in February 2008.

The fund manager noted that the dividend is a clear demonstration of its confidence in its ability to deliver steady growth and consistent returns to investors.

The fund managers stated that the dividend represents a 50.54 per cent increase from the dividend paid for the year ended December 31, 2008, while the distribution accounts for 80 per cent of the Fund’s net income in line with its minimum distribution requirement.

The statement reads, “The N3 interim dividend would imply that the Fund has declared dividends for three years. We expect the share to qualify for investment by Pension Fund Administrators (PFAs) with the declaration and payment of the third dividend.

According to the statement, the fund manager explained that Protea Select Hotel is designed to create a sophisticated yet welcoming living environment comprising 125 rooms with all necessary supporting systems, restaurant, bar, fitness centre, swimming pool, conference room and ample secured parking.

The statement reads further. “A local market survey conducted by W Hospitality Group, specialist advisory firm in the hotels, tourism and leisure industries, and the financial projections indicate that the project has strong prospects of economic success.

“This investment is in line with the Fund manager’s strategy to diversify from the residential sector as it expands aggressively.

“The Fund will continue to seek to invest in high quality real estate at discounted prices in target areas of Lagos, Port-Harcourt and Abuja. This will ensure its consistent delivery of returns to unitholders in the coming years.”