A Real Estate Investment Trust (REIT) is a regulated entity that allows individuals to invest in real estate without directly owning or managing the properties. Investors in REITs earn through dividends generated from the profits of the real estate properties managed by the trust. The Capital Markets Authority (CMA) oversees the licensing and regulation of REITs in Kenya.
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Types of REITs in Kenya
- Development Real Estate Investment Trusts (D-REITs):
- Focuses on pooling capital for real estate development and construction projects.
- Income Real Estate Investment Trusts (I-REITs):
- Primarily generates income from rental properties such as office buildings, shopping centers, apartments, hotels, and industrial complexes.
- Offers a steady income stream to investors.
- Islamic Real Estate Investment Trusts:
- Engages in Shari’ah-compliant real estate investments and activities.
List of Authorized REITs in Kenya
| REIT | Location | Contact Information |
|---|---|---|
| Acorn Development Real Estate Investment Trust (Acorn D-REIT) | Acorn House, 97 James Gichuru Road, Lavington, Nairobi | Tel: 020 259 2671, 020 259 2672 |
| Acorn Income Real Estate Investment Trust (Acorn I-REIT) | Acorn House, 97 James Gichuru Road, Lavington, Nairobi | Tel: 020 259 2671, 020 259 2672 |
| ILAM Fahari I-REIT | ICEA LION Centre, Riverside Park, Chiromo Road, Westlands | Tel: +254 20 2750 000, +254 0719 071 000, +254 730 151 000 |
| LAPTRUST Imara Income Real Estate Investment Trust (LAPTRUST IMARA I-REIT) | 5th Floor, Delta Corner Annex, Ring Road, Westlands | Tel: (+254) 0111 045 600 |
Benefits of Investing in REITs
- Accessibility: Enables individuals to invest in high-value real estate with minimal capital.
- Diversification: Allows investors to diversify their portfolios.
- Income Stability: Provides regular dividends from rental or lease agreements.
- Professional Management: Properties are managed by experienced professionals.
- Liquidity: Easier to buy and sell shares compared to physical real estate.
Capital Markets Authority (CMA) Contacts
- Head Office: Embankment Plaza, 3rd Floor, Longonot Road, off Kilimanjaro Avenue, Upperhill, Nairobi.
- Contact: +254 722 207767, +254 20 2264000.
- Email: [email protected].
For more information on REITs and investing in the real estate sector in Kenya, you can contact the CMA or any of the REITs listed above.
