ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
68. Partial ownership of properties
Edition: 2023-10-06 · In force
68. Partial ownership of properties
(1)Interests in a real estate acquired as an asset by the trustee of an l-REIT including where the investment by the REIT is held through its investment in investee companies or investee trusts shall—(a)not consist of partial ownership of real estate assets; and(b)in the case of a real estate which is on freehold land, be wholly owned and controlled, from the time of acquisition, by the trustee who shall exercise all rights, interests and benefits normally enjoyed by an owner without interference.(2)In the case of a real estate asset which is on leasehold land, the trustee shall, from the time of entering into the lease, have the sole rights, interests or benefits normally enjoyed by a lessee subject to the terms of the lease and the rights of the lessor.(3)The provisions of paragraphs (1) and (2) shall not apply to assets acquired through the purchase of shares in a property company or REIT securities of other I-REITS permitted under these Regulations and which are not investee companies or investee trusts.(4)Total investments by an I-REIT in shares in property company shares or REIT securities of other I-REITS which are not investee companies or investee trusts shall not in total exceed ten percent of the total asset value where the percentage is calculated based on the value of the investment and the total net asset value as at the time of acquisition of the shares or REIT securities.