ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
77. Consequences of failure to invest in real estate within one hundred and eighty days
Edition: 2023-10-06 · In force
77. Consequences of failure to invest in real estate within one hundred and eighty days
(1)Where an investment in real estate has not been completed of the period specified under regulation 76, the trustee shall call a meeting of the REIT securities holders within twenty eight days of the expiry of the period for investment for the purpose of—(a)considering the report by the REIT manager on the reason for the delay in completion;(b)the implications for the holders of investment in the D-REIT;(c)determining, by special resolution whether—(i)the period for registration should be extended and the period of extension; or(ii)all monies paid into the fund together with any interest or earnings should be refunded within fourteen days of the date of the meeting; and(iii)what other action should be taken by the trustee or REIT manager.(2)Failure by the trustee to—(a)complete the proposed investment in real estate shall not constitute an offence; or(b)call the required meeting or to refund monies within the specified period shall constitute an offence on the part of the promoter, the trustee and the REIT manager.