Real Estate Investment Trusts (REITs)

The newest investment option in the Caribbean region, with exciting opportunities for both developers and investors.

Real Estate Investment Trusts (REITs) are an established means of financially structuring commercial and infrastructure developments in many parts of the world. Now, the revision of investment trust legislation is enabling new means of investment in the Eastern Caribbean Region, which will be subject to regulation by the Eastern Caribbean Securities Regulatory Commission (ECSRC).

Developers can benefit from REITs with easier access to relatively lower cost capital, allowing them to develop institutional grade real estate. By selling stabilised assets to REITs, property developers can unlock capital that can be more effectively deployed in new development projects.

Investors can also benefit from REITs, with a potential to acquire a total return on investments receiving both the capital appreciation and yield. Historically, they have provided strong dividends plus the potential for moderate, long-term capital appreciation. Additionally, REITs have offered investors liquidity, portfolio diversification and strong corporate governance.

As an independent nation, Antigua and Barbuda is well positioned to attract international business interested in local investments. One of the products that will interest foreign direct investment for commercial development is the Real Estate Investment Trust. Real estate investors will be facing a post-Covid 19 environment in 2021 as the likelihood of a global recession and concerns around economic uncertainty rise while, at the same time, investors are forced to overhaul traditional business and valuation models in response to rapidly-changing consumer demands. With the increased investment in REITs throughout the Middle East, Antigua and Barbuda has carefully incorporated in the REIT Regulations certain clauses that make Antigua and Barbuda Real Estate Investment Trusts (AB-REIT) an attractive investment for UHNWI Middle East investors. REIT regulations are being finalised and will cover D-REIT, I-REIT and EH-REIT options and will be Shari’ah-compliant.


Development-REIT (D-REIT)

D-REITs create investment opportunities for project development with an exit strategy at completion of construction. A D-REIT typically converts to an I-REIT at completion of construction and unitholders in the D-REIT would have the option to exit with a capital gain or convert their D-REIT units into I-REIT units. Converting to I-REIT units would still realize a capital gain.

Income REIT “I-REIT”

An I-REIT is an investment into an opportunity for income-earning real estate property or properties.

An I-REIT offers both Capital Gains and Dividend opportunities to the investor.

Education and Healthcare REIT EH – REIT”

Same benefits as I-REIT. Providing investors with market focused investment opportunities.