MANAMA - Retail investors will now be able to invest in Bahrain domiciled Real Estate Investment Trusts (B-REITs), according to new directives from the Central Bank of Bahrain (CBB).
Removal of the previous restriction on the type of investors in REITs will allow all types of investors, including high net worth, institutional and retail investors to benefit from the attractive characteristics of REITs, such as higher liquidity for listed REITs, regular distribution of cash dividends and high transparency, it said.
REITs are collective investment undertakings (CIUs) that acquire and operate income generating local and foreign real estate properties directly or indirectly, thereby allowing all types of investors to obtain exposure to the real estate market.
Since REITs are tradeable instruments, such changes to the directives will also make it more feasible and practicable to list B-REITs on the Bahrain Bourse and other licensed exchanges.
“Overall, REITs have become an important addition to the real estate investment landscape in the last few years for both retail investors and the large institutional investors, reflecting the increased growth, maturity, transparency and sophistication of the local, regional and global real estate markets,” said CBB executive director for financial institutions supervision Abdul Rahman Al Baker.
The details of the new directives are available on the CBB website under CBB Volume 7 Rulebook that governs the rules and regulations of CIUs.
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