ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
62. Appointment and role of the structural engineer
Edition: 2023-10-06 · In force
62. Appointment and role of the structural engineer
(1)A trustee shall, in consultation with the REIT manager, appoint a structural engineer and have access at all times to the services of a structural engineer in relation to the REIT.(2)The trustee shall appoint the structural engineer under paragraph (1) prior to—(a)an application being made for authorization of the scheme;(b)the issue of a prospectus or an offering memorandum;(c)the entering into any binding contract or a contract that can only be terminated on the payment of a penalty, for the acquisition or disposal of any additional properties by the trustee; and(d)any initial public offering.(3)The structural engineer shall ensure that the state of repair of the specific real estate property, including the services, systems and material plant and equipment, is independently assessed, latent defects identified and that these factors are—(a)taken into consideration in any valuation; and(b)disclosed in any prospectus or offering memorandum.(4)The structural engineer shall, in the performance of his duties under paragraph (3)—(a)conduct an appraisal of a specific real estate property which is proposed to be acquired; and(b)prepare and submit to the REIT manager and the trustee a report on—(i)the state of repair of the proposed property, services, systems and material plant and equipment;(ii)any latent defects and the cost, if any, which is likely to be incurred in remedying such defects or in bringing the property to a reasonable state of repair; and(iii)any limitation in the engineer's ability to make a full assessment and whether additional professional assessment, input or reports are required.(5)The structural engineer shall, in performing his duties, be independent of, and shall not be subject to the direction or control of—(a)the REIT manager and any property manager;(b)the project manager certifier;(d)any valuer appointed to conduct a valuation in respect of a specific property; or(e)any person from whom the I-REIT has or is proposing to acquire real estate assets.(6)The REIT manager shall—(a)make available a copy of any report of the structural engineer to the property manager, project manager certifier, and to the valuer; and(b)ensure the details of the report are included in any prospectus or offering memorandum and where appropriate, disclosed as part of the continuing disclosure obligation under these Regulations.