ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
36. Disclosure of financial structuring
Edition: 2023-10-06 · In force
36. Disclosure of financial structuring
(1)Any measure proposed in the offering memorandum or subsequently introduced in the funding, structuring, management or operation of the REIT by way of structuring or financial structuring including—(a)the deferral of the REIT manager's fees;(b)the use of two classes of REIT securities one class of which is entitled, for a limited period, to no or a lower yield than other classes of REIT securities;(c)inclusion of tenancies with above market rents or minimum rental; or(d)guarantees from the issuer or a connected person, which is designed to or have the effect of improving the natural or unstructured yield or distribution levels in any financial year by more than five percent above those that would otherwise result from the net income generated from the assets of the fund without the adoption of such measures—(i)the prospectus or offering memorandum shall specifically disclose and clearly set out the measures;(ii)the implications of the absence of, the removal or expiry of such measures on yield, cash flows, distributions and the risk profile of the REIT in the short and longer term shall be simply and clearly identified; and(iii)a sensitivity table shall be included in the prospectus or offering memorandum which demonstrates the impact of the measures.(2)Where the measures under paragraph (1) are introduced subsequent to the issue of any prospectus or offering memorandum, the measures shall be clearly identified and their impact reported as part of the continuing disclosure reporting under regulation 42 and in subsequent half yearly and annual reports under regulation 101.