ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
95. Recoverable expenses
Edition: 2023-10-06 · In force
95. Recoverable expenses
(1)The right of the trustee or the REIT manager to deduct fees together with—(a)a reasonable estimate of the recoverable expenses to be incurred; and(b)details of the estimated management expense ratio,for the first two years following authorization of the real estate investment trust scheme from the date of the prospectus or offering memorandum shall be set out in the prospectus or offering memorandum.(2)The REIT manager shall, subject to the provisions of the scheme documents, be entitled, in addition to any fee payable, to recover and pay out of or charge to the fund, expenses or an appropriate apportionment thereof, directly related and necessary in operating and administering the real estate investment trust which may include—(a)the costs and expenses incurred in—(i)carrying out any capital works or authorized development or construction including the appointment of professional advisers; or(ii)letting, maintaining, refurbishing of, developing, acquiring, investing, incurring income from or disposal of assets;(iii)providing services in relation to the assets of the fund, including electricity, water, cleaning and security services, or services of a similar nature;(iv)the modification of the scheme documents other than for the benefit of the REIT manager or the trustee:(v)any meeting of REIT securities holders other than those convened for the benefit of the REIT manager or the trustee;(vi)the insurance and maintenance of the real estate and other assets belonging to the fund;(vii)the leasing and letting out of properties or otherwise earning income from the assets and related expenses;(b)general taxes and other duties, levies or charges on the fund but not taxes levied on the trustee or REIT manager in their personal capacities;(c)fees and other expenses properly incurred—(i)by the auditor appointed for the fund;(ii)by any project manager certifier appointed for the real estate investment trust or in respect of a particular project;(iii)by the structural engineer appointed for the real estate investment trust or in respect of a particular project;(iv)for the valuation of any investment or proposed investment or asset of the fund by an independent valuer for the benefit of the fund;(v)in defending claims against the fund; or(vi)in respect of any asset or investment or proposed investment of the fund;(d)initial and ongoing listing expenses; and(e)legal, accounting and the standard underwriting fees and expenses incurred in—(i)arranging borrowing or other financing arrangements by the trustee on behalf of the real estate investment trust; or(ii)the issuing of additional REIT securities but not the costs or expenses ordinarily associated with the redemption of REIT securities in an open ended fund or the issue of new or replacement REIT securities in such a fund.(3)The overheads and costs of services expected to be provided by a REIT manager in its capacity as REIT manager shall not be charged to the fund.(4)The trustee and the auditor shall review all expenses charged to the fund and only allow such expenses which they reasonably determine are legitimate and in accordance with standard arm's length commercial rates generally prevailing in Kenya.(5)The trustee in addition to payment of its fees shall be entitled to reimbursement by the fund, of any costs and expenses reasonably incurred in the performance of its duties and responsibilities as a trustee including defending of the assets of the fund and the interests of the REIT securities holders.