The Central Bank of Bahrain (CBB) has given the go-ahead for registration of the first Real Estate Investment Trust (REIT) under Bahrain's financial trusts law.

The Inovest Real Estate Investment Trust (IREIT), a Bahrain-based Sharia’h compliant investment company, has been authorised and approved by the CBB as an expert collective investment undertaking established as a unit trust and with Two Seas Trust as trustee.

It is intended to list IREIT on the Bahrain Stock Exchange.

Inovest, being the promoter, will commence marketing of the units with immediate effect.

"The CBB is pleased to authorise the first REIT in Bahrain," financial institutions supervision director Mohammed Ayman Al Tajer said.

"While the existing CIU regulations recognise REITs as an asset class, we are committed to expand the existing CIU regulatory framework, to be in line with best international REITs practices, taking into account their customisation to our local and regional markets.

"Such initiative will address the REITs structure, relevant components and requirements in more specific detail.

"We recognise REITs as an important investment asset class and we are positive that the unit trust structure would facilitate the establishment of a variety of innovative products, utilising the Financial Trust Law of Bahrain in addition to the current CIU regulations.

"This is an important event for the Bahraini trust industry and a significant milestone for Two Seas Trust," Two Seas Trust managing director Paul Perris said.

"Two Seas Trust is delighted to have worked closely together with Inovest, Keypoint Consulting and the CBB in structuring the REIT.

"We are very excited about the opportunities to further develop trust based products for the local and GCC market," he said.

"We are proud to have obtained CBB approval to this first Sharia-compliant REIT which adheres to international best practices," Inovest chief executive officer Dr Khalid Abdulla said.

"Given the strict criteria and supervision coupled with disciplined approach to building the pipeline, IREIT will be in the best position to offer superior risk adjusted returns to its investors,” he added. – TradeArabia News Service