The Housing Bank for Trade and Finance (HBTF) in Bahrain has announced that it has received a license from the Central Bank of Bahrain to launch the first real estate fund for retail investment in the Kingdom.
The fund is be expected to be publically offered late October.
The licence will pave the way for the initial first year of IPO and the fund’s inclusion in the Bahrain Stock Exchange. The Bank has chosen “SICO” Securities and investment to manage the IPO.
The Real Estate Investment Fund is the only general fund which will be introduced without any debts on its estates.
It is also the second fund included the Bahrain Stock Exchange to be in line with the provisions of Islamic Sharia.
The Fund will be run according to full compliance with the new rules for real estate investment funds issued by the Bahrain Stock Exchange in May 2015.
Dr Khalid Abdullah, Director General of HBTF, said: “This initiative is fully compatible with carrying out bank responsibilities towards the community. We will give citizens the opportunity to own stakes in the bank’s real estate development projects and with a minimum contribution of BD 500. In addition to the opportunity to benefit from residential and commercial rent revenues. ”
Abdullah added: “This ambitious initiative confirms our ongoing commitment to encourage private sector participation in real estate development projects presented by the Bank and the targeting of social housing and affiliated utilities.”