24 June 2009
Bahrain's Central Bank yesterday approved a Shariah-compliant real estate investment trust (Reit) by investment bank Inovest.
Inovest will start marketing the units and intends to list the Inovest Real Estate Investment Trust (Ireit) on the Bahrain Stock Exchange.
Chief Executive Officer Dr Khalid Abdulla said: "We have worked closely with the central bank over the past few months and are proud to have obtained approval for the first Shariah-compliant Reit. Given the strict criteria and supervision coupled with disciplined approach to building the pipeline, Ireit will be in the best position to offer superior risk adjusted returns to its investors. With this launch, Bahrain's financial services sector has taken a step forward and reasserted its leadership position in the region."
In April, Abdulla had told Reuters that the company was also planning its second Reit, worth more than BD30 million (Dh292.1m), and its first Reit, announced last week, was expected to list on the Bahraini stock exchange by August.
Mohammed Ayman Al Tajer, Director of the Financial Institutions Supervision Directorate, said: "We recognise Reits as an important investment asset class and we are positive that the unit trust structure would facilitate the establishment of a variety of innovative products, utilising the Financial Trust Law of Bahrain in addition to the current collective investment undertakings regulations."
Paul Perris, Managing Director, Two Seas Trust, the trustee for the Ireit, said: "This is an important event for the Bahraini Trust industry. And we are excited about the opportunities to develop Trust-based products for the local and Gulf Co-operation Council market."
Bahrain's Central Bank yesterday approved a Shariah-compliant real estate investment trust (Reit) by investment bank Inovest.
Inovest will start marketing the units and intends to list the Inovest Real Estate Investment Trust (Ireit) on the Bahrain Stock Exchange.
Chief Executive Officer Dr Khalid Abdulla said: "We have worked closely with the central bank over the past few months and are proud to have obtained approval for the first Shariah-compliant Reit. Given the strict criteria and supervision coupled with disciplined approach to building the pipeline, Ireit will be in the best position to offer superior risk adjusted returns to its investors. With this launch, Bahrain's financial services sector has taken a step forward and reasserted its leadership position in the region."
In April, Abdulla had told Reuters that the company was also planning its second Reit, worth more than BD30 million (Dh292.1m), and its first Reit, announced last week, was expected to list on the Bahraini stock exchange by August.
Mohammed Ayman Al Tajer, Director of the Financial Institutions Supervision Directorate, said: "We recognise Reits as an important investment asset class and we are positive that the unit trust structure would facilitate the establishment of a variety of innovative products, utilising the Financial Trust Law of Bahrain in addition to the current collective investment undertakings regulations."
Paul Perris, Managing Director, Two Seas Trust, the trustee for the Ireit, said: "This is an important event for the Bahraini Trust industry. And we are excited about the opportunities to develop Trust-based products for the local and Gulf Co-operation Council market."
By Staff Writer
© Emirates Business 24/7 2009
