Eskan Bank mandates SICO to list first REIT on Bahrain Bourse

Eskan Bank has appointed Securities & Investment Company (SICO) as lead arranger for the first real estate investment trust (REIT) on the Bahrain Bourse, and only the second Shariah-compliant listed REIT in the Gulf region.
A listed REIT is a regulated investment vehicle that invests directly in real estate with its units traded like a stock on exchanges.
Eskan Bank’s REIT will consist of two income-generating and unleveraged properties currently owned by Bahrain Property Musharaka Trust (BPMT), which was formed in May 2011.
Khalid Abdulla, GM, Eskan Bank, said: “The initiative of listing the REIT will be the first in Bahrain by Eskan Bank.”
As arranger, SICO is responsible for managing the entire process. The Shariah-compliant REIT is expected to have a total value of BD20 million, with a tranche that will be offered to the public.
Najla M. Al-Shirawi, CEO of SICO, said: “The introduction of this new alternative investment asset class will contribute in adding depth to the Kingdom’s real estate sector.”
Bahrain Bourse’ Shaikh Khalifa bin Ebrahim Al-Khalifa, said: “The introduction of the REIT listing rules will facilitate investment in productive assets.”
New listing rules for REITs issued by the Bahrain Bourse (BHB) came into effect on May 17, with requirements including a minimum of two properties with a combined asset value of no less than $20 million.
Eskan Bank REIT properties consist of Segaya Plaza and Danaat Al Madina.