Bahrain’s top provider of housing finance, Eskan Bank, will close the initial public offering on its first sharia-compliant retail real estate investment trust (REIT) next Tuesday.
Eskan Bank assigned Securities & Investments Company (Sico) as the market maker of the IPO, while Bahrain Islamic Bank was assigned as the receiving bank.
Application forms of the trusts are available at Bahrain Islamic Bank branches in Riffa, Arad, and Budaiya, besides the bank’s head office in the Deplomatic Area.
The BHD 14.4 million is restricted on Bahraini and Khaliji investors, while the minimum payment for subscription is BHD 500.
The REIT includes two high income-generating properties owned by the Trust which are Danat Al Madina in Isa Town and Segaya Plaza in Manama.
The REIT includes a diversified set of properties from different real estate sectors with a combined occupancy rate of 85 percent.
Eskan Bank targets distributing a semi-annual 6.5% profit for each trust REIT holder. It targets also increasing the property portfolio with stable and lucrative units for sake of maintaining high and stable profit margin.