reit (real estate investment trust)

Regulatory Requirements – Corporate Governance At least 1/3 independent representation on the Board of Directors of the operator. At least 2 members of the board are to be independent. A director is not allowed to be a director of more than 1 management company. Regulatory Requirements – What Can Invest In? At Least 50% of a listed/unlisted funds total assets must be invested in real property or single purpose company. At Least 75% of a listed fund total assets should be invested in real property, SPCs, real property related assets or liquid assets. Holding of Securities of, and securities relating to a single issuer – no more than 5% of funds total assets Holding of Securities of, and securities relating to group of companies- no more than 10% of funds total assets Holding in any class of security of a single issuer -no more that 10% of securities issued Generally, property development not allowed Regulatory Requirements – Investor Protection Appointment of Trustee as custodian of assets SC approval on value of Real Property for certain types of acquisition SC Approval on value of real property on revaluation of properties Appointment of Property Management Company to manage to real properties Regulatory Requirements – Listing Governed by the Listing Requirements of Bursa Malaysia Must First Receive Prior approval of SC before can be offered to the public and listed Firm underwriting agreements must be made for units of a listed fund to be fully or irrevocably underwritten before the public offering of a listed REIT