ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
86. Conversion from an open to a closed REIT or from a restricted to an unrestricted REIT
Edition: 2023-10-06 · In force
86. Conversion from an open to a closed REIT or from a restricted to an unrestricted REIT
(1)Except where the scheme documents provide otherwise a REIT Manager may make an application to the authority for the conversion of—(a)an open ended fund restricted issue REIT to a closed ended fund;(b)a closed ended fund restricted issue REIT to an open an ended fund; and(c)a restricted issue I-REIT or offer scheme to an unrestricted I-REIT.(2)A REIT manager shall not make an application for conversion under paragraph (1) unless—(a)the 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;(b)the scheme documents have been amended to comply with the requirements of the Act and these Regulations as regards the type of fund or REIT to which it is proposed to convert;(c)a conversion offering memorandum or prospectus, which meets the requirements of these Regulations as regards the type of fund or REIT to which it is proposed to convert, is filed with and approved by the Authority and distributed to existing REIT securities holders prior to the holding of the meeting of REIT securities holders to consider the resolution to approve the conversion.(3)Regulation 17 and 37 shall apply to the application for conversion under paragraph (1) as if the application was for an authorization as a real estate investment trust scheme and for approval of a prospectus or offering memorandum respectively.