June 1 (Reuters) – Emirates Tarian, an investment firm with Middle East links, is planning to list an Islamic real estate investment trust in Singapore that will have assets of at least S$500 million ($355.4 million), three sources said on Tuesday.
The listing of the shariah-compliant property trust, called Sabana REIT, will be managed by United Overseas Bank (UOB) (UOBH.SI) and HSBC (HSBA.L), with the initial public offering slated for late 2010 or early 2011.
Sabana is in the process of acquiring warehouses and factory buildings in Singapore, and on Tuesday signed an option to buy an industrial property in the eastern part of the city-state for S$46.3 million from construction firm Sim Lian Group (SIML.SI).
“It’s (the REIT) still very much work in progress and the amount is not finalised… The market is not helping either,” a banking source said.
Sharia or Islamic law prohibits the leasing of real estate for purposes such as alcohol production or pornography, making warehouses and industrial buildings suitable for Islamic investors.
Emirates Tarian and UOB declined to comment, while HSBC could not immediately be reached for comment. ($1=1.407 Singapore Dollar) (Reporting by Kevin Lim; Editing by Muralikumar Anantharaman)