Eskan REIT sees growing interest

Manama : Now just two more days left to subscribe for the public offering of units in Bahrain’s first Sharia-compliant retail real estate investment trust (REIT), Eskan Bank announced yesterday. The offering closes on December 6.

The BD14.4 million (US$38.2m) Eskan Bank Realty Income Trust is reserved for Bahraini and GCC individual and institutional investors. 

The minimum subscription is BD500 equating to 5000 units, and allotment priority will be given to individual Bahraini applicants. 

The IPO will be followed by a listing of the REIT on the Bahrain Bourse, which is targeted for 2 January 2017. Investors will have the flexibility to trade their units on the BHB, with a dedicated market maker providing additional liquidity on an ongoing basis.

The REIT comprises two initial Bahraini income-generating properties, which are wholly-owned by the Trust: Danaat Al Madina in Isa Town and Segaya Plaza in Manama. The properties currently have a combined occupancy rate of over 85 per cent, and the Trust intends to increase its property portfolio as and when attractive opportunities arise.

The Trust has a target of 6.5pc in net distributable income payable semi-annually; offers lower risk and volatility than stocks and bonds due to long-term rents; the opportunity to share in a stable diversified property portfolio; and liquidity by being able to easily convert units to cash. 

Copies of the offering prospectus and application form can be collected from BisB’s financial malls at Budaiya, Arad and Riffa, or the head office branch in the Diplomatic Area; as well as from the Bahrain Bourse at Bahrain Financial Harbour. 

The participating BisB outlets will receive completed application forms and payments. 

Securities & Investment Company (SICO) is the mandated lead manager, sub-investment manager and dedicated market maker for the offering; while Bahrain Islamic Bank (BisB) has been appointed as the receiving bank. For more details call (+973) 17 515 200 or visit www.eskanREIT.com.