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.