المادة 51: Merging Real Estate Investment Traded Funds

Article 51: Merging Real Estate Investment Traded Funds

a) Submitting an application to the Authority for merging REIT funds

1) After obtaining the approval of the unitholders of all the related funds by way of a special fund resolution, the fund manager may apply to the Authority for the approval to merge a number of REIT funds offered in accordance with these Regulations.

2) The merger shall be through combining one fund or more into an existing fund.

3) The unitholders must be notified about the merger details, which must be disclosed on the fund manager’s website and on the Exchange's website, at least,

(21) days prior to executing the merger.

4) The merger details must be incorporated in the fund’s reports prepared by the Fund Manager pursuant to these Regulations, based on the type of offer.

5) The fund manager must disclose the resulted merger costs.

b) Additional information to be provided to unitholders

1) The fund manager must provide all the unitholders with complete information about the proposed merger that will enable them to reach a proper decision, as per the following:

a) it is written in a way that is clear, accurate, and not misleading.

b) it contains, in a detailed way, all the expected consequences of the proposed merger.

2) it contains a detailed comparison of the charges of all services, commissions and management fees that are imposed on the related funds. Part 5 Real Estate Investment Funds that Take the Form of a Special Purposes Entities