Press Release
Key Points
- Admission of 632,800,000 units of Sabana Reit to the Official List of SGX-ST.
- Trading in the units is expected to commence on "Ready" basis with effect from 2.00 p.m., Friday, 26 November 2010.
- The short name is "Sabana REIT"and abbreviated name is "SABREIT".
The first Shari'ah Compliant Reit in SGX will commence trading tomorrow from 2.00 p.m. The counter is already available in the SGX website, with a code of M1GU.
Some of you may remember a couple of old news sometime back about plans for the first Shari'ah Compliant Reit in SGX. First was non other than Cambridge Industrial Trust. The manager was contemplating to convert the Reit into a Shari'ah Compliant Reit in early 2009. One of the reasons given was also about attracting investors from the Middle East. I remember there was even a report about the Reit being already more than 90% compliant. However, there was no subsequent follow-up about the plan. If it has gone ahead, Cambridge would have become the first Shari'ah Compliant Reit.
The other was a partnership agreement between ARA Asset Management and Qatar-based Regency Group to jointly manage a Shariah-compliant REIT made up of mainly hospitality properties. It was announced at the end of 2009, and the plan was to list the Reit in the second half of 2010. Right now we are still in the second half of 2010, and there is still a possibility of the Reit being listed by 2010. Only thing is that with the listing of Sabana Reit, it will no longer be the first Shari'ah Compliant Reit as originally planned. But it will still be the first Shari'ah Compliant hospitality Reit (Sabana Reit is in the industrial sector). Anyway it remains to be seen whether these Shari'ah Compliant Reits will really be effective in attracting investments from the rich middle eastern countries.
Related Posts
- Sabana REIT to raise S$696.1m through IPO - 10 NOV 2010
- REIT Financial News - Ara Asset Management plans to launch the first Shariah-Compliant Reit
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