ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
85. Requirements for conversion
Edition: 2023-10-06 · In force
85. Requirements for conversion
(1)A REIT manager of a D-REIT may apply to the Authority to convert the D-REIT into an I-REIT.(2)The REIT manager shall not make an application under paragraph (1) unless—(a)a conversion prospectus or offering memorandum, which meets the requirements for an I-REIT, is submitted to and approved by the Authority and distributed to existing REIT securities holders prior to the holding of the meeting of REIT securities holders under paragraph (b);(b)the proposed conversion has been approved by the trustee and by a special resolution passed at a meeting of REIT securities holders held not more than six months prior to the proposed conversion date;(c)the scheme documents have been amended to comply with the requirements of an I-REIT;(d)the REIT manager demonstrates to the Authority that the D-REIT shall, upon conversion, be able to meet the eligible asset requirements for an I-REIT; and(e)the REIT manager demonstrates to the Authority that at least fifty percent of the total value of the real estate assets of the fund are—(i)subject to long-term leases; or(ii)where the nature of the real estate asset is such that long term leases are not the norm, the real estate assets have been income producing for at least six months.(3)Regulation 17 shall apply to the application for conversion as if the application was for the authorization as an I-REIT.