REIT Financial News - Ara Asset Management plans to launch the first Shariah-Compliant Reit

ARA SIGNS EXCLUSIVE MOU WITH QATAR-BASED REGENCY GROUP TO ESTABLISH FIRST SHARIAH-COMPLIANT REIT IN SINGAPORE. See report.

Key Points

• ARA Asset Management has entered a partnership agreement with Qatar-based Regency Group to jointly manage a Shariah-compliant REIT. 
• Plans to list the REIT in SGX in the second half of 2010.
• Proposed REIT to comprise mainly of hospitality properties, including hotels and serviced apartments in Qatar.
• Properties will be contributed by the Regency Group as the sponsor of the REIT.  
• The Regency Group is a leading real estate developer and investor in the Gulf Cooperation Council, with a portfolio of hospitality, residential, commercial and retail properties in Qatar.
• ARA Asset Management, an affiliate of the Cheung Kong group, is a real estate fund management company listed in SGX. It is currently the manager of SUNTEC Reit and Fortune Reit. 

Author's Note
This is not the first time the idea of a Shariah-compliant Reit has been conceived in Singapore. Earlier part of the year, Cambridge Industrial Trust has also explored the idea of becoming a Shariah-compliant Reit, but there was no follow-up subsequently. It was widely believed then that the move was to attract funding from the rich middle eastern countries.