ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
83. Distribution of realized capital gains by a D-REIT
Edition: 2023-10-06 · In force
83. Distribution of realized capital gains by a D-REIT
(1)Subject to the scheme documents, the REIT manager may recommend to the trustee on and the trustee may distribute any realized capital gains.(2)Any capital gains may be retained and invested in new acquisitions or development and construction or buy to rent housing income producing real estate:Provided that any realized capital gains which have not been invested within a period of two years from the date of realization shall be distributed to REIT securities holders within two months of the second year of such realization.(3)Where the trustee fails to make the distribution under paragraph (2)—(a)the D-REIT may cease to be classified as a real estate investment trust scheme for taxation purposes;(b)subject to the scheme documents, the REIT securities holders may institute a cause of action against the trustee or the REIT manager; and(c)the Authority may revoke the authorization issued to it under these Regulations.