REIT is an investment vehicle that proposes to invest at least 50
percent of its total assets in real estate, whether through direct
ownership or through a single purpose company whose principle asset
comprises of real asset.
The
issuance of the real estate investment trusts (REITs) guidelines by the
SC (to replace the existing property trust fund guidelines) has helped
kick-start the REITs industry in Malaysia. Subsequently, the SC
released the Guidelines for Islamic Real Estate Investment Trusts
(I-REITs Guidelines) to facilitate the introduction of
Shariah-compliant REITs.
Malaysia became the first
jurisdiction in the global financial sector to issue the I-REITs
Guidelines. The I-REITs Guidelines was set as the global benchmark for
the development of I-REITs. The thrust of the I-REITs Guidelines is to
provide clear guidance on and new investment opportunities in
collective real estate investments through a Shariah-compliant capital
market instrument.
