“There has been a record interest in this new innovative product and we expect the listing of first REIT on the Bourse by early month,” ,” Shaikh Khalifa Ebrahim Al Khalifa, Chief Executive Officer, told the Press conference held at the Bahrain Bourse at BFH HQs marking the start of listing of listing of REITs.
“This is one of the milestones in the history of real estate sector legal frame works safeguarding the investors,” he said, adding that the Trustees role is an additional protective layer and safety net for the stakeholders.
Talking about the regulatory regime, Shaikh Khalifa said that Bahrain was second to none, the fact which put Bahrain’s financial sector as one of the well regulated entities amongst its peers globally.
Shaikh Khalifa, was joined by his team members including Hani Al Mandeel, Ali Mansour, Ibrahim Al Aradi, said the Real Estate Investment Trust (REIT) listing rules were applicable to both Shari’a compliant REITs as well as conventional REITs.
“Both individual and institutional investors are allowed to list and trade REITs. The rules stipulate the listing requirements that the REIT should comply with at the time of making an application for listing, such as ensuring that the REIT has a minimum asset value of US$20 million or its equivalent in another currency. The rules also state that the REIT or share registrar appointed by the trust shall maintain a register of Unit Holders.”
In addition, the rules specify the ongoing obligations that the REIT has to comply with following its listing at BHB including the Directives, circulars, instructions as may be issued by BHB from time to time on the subject of REITs, as well as any disclosures of any information related to the REIT. The rules also stipulate that the REIT shall take all reasonable care to ensure that the sale, issue, repurchase effected by a REIT are carried out in accordance with the provisions of the Prospectus and the REIT Listing Rules as well as Volume 7 of the CBB Rulebook and the rules issued by Bahrain Bourse.
The rules stipulate that the REIT shall ensure that investor reports published shall be made available on BHB’s website and in accordance with the disclosure requirements prescribed by the CBB and Bahrain Bourse on REITs.