ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
79. Partial ownership of real estate
Edition: 2023-10-06 · In force
79. Partial ownership of real estate
(1)Interests in real estate acquired as assets of a D-REIT shall—(a)not consist of partial ownership of real estate assets;(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 real estate which is on leasehold land, then from the time of the commencement of the lease entered into by the trustee on behalf of the scheme, the trustee shall have sole rights, interests or benefits normally enjoyed by a lessee, subject only 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 permitted under theseRegulations and which are not investee companies or investee trusts.(4)The limitation on partial ownership of' real estate shall not apply to a D-REIT in the case of real estate which the D-REIT—(a)has developed and constructed and sold part of the interest in the completed project to another person; or(b)has partial ownership—(i)as a consequence of the D-REIT entering into a term or instalment sale or other transaction of a similar nature; or(ii)where in connection with an acquisition or sale, sub-division of the real estate is in progress.(5)The total investments by a D-REIT in property company shares or REIT securities which are not in 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 at the time of' acquisition of the shares or REIT securities.