All About REIT Privileges Registry by DLD

Dubai has long been a global investment hub, encouraging local and international real estate trusts to invest in its thriving market. In its efforts to facilitate investors, the Dubai Land Department has introduced various initiatives. One such initiative is the REIT privileges registry by DLD, which offers exclusive benefits to real estate investment trusts.

From increasing real estate accessibility to attracting more investors, the DLD Privileges Registry has strengthened Dubai’s position in the global market. But what exactly does this initiative offer and how can a trust register with DLD? Read ahead to get answers to all your queries.

• Dubai Launches Privileges Registry for REITs
• Benefits of REIT Privileges Registry by DLD
• Required Documents
• Process
• Service Terms and Conditions
• Fees
• FAQs

Dubai Launches Privileges Registry for Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are companies or trusts that own and manage residential, commercial, and industrial real estate. These trusts sell property shares to individuals, making real estate investments more accessible.

The Dubai Land Department (DLD) has taken various initiatives to attract local and international real estate investors. One such initiative is the REIT privileges registry by DLD, introduced in alignment with Decree No. (22) of 2022. This initiative offers several benefits, encouraging local and international REIT trusts to invest in Dubai real estate.

But what are the benefits of the privileges registry and how can a trust register with DLD? Let’s get into the details:

Benefits of REIT Privileges Registry by DLD

REITs registered with DLD enjoy the following benefits:

• On the registration of REITs with DLD, trusts can benefit from the value of real estate fees. For instance, an AED 50,000 fee is charged to transfer property ownership from the founder to the trust.
• DLD charges only 2% registration fee if a trust registers a real estate property under its name.
• If a trust registers a property for long-term rental rights or a usufruct, it benefits from a 2% charge on the market value.

Please note that the aforementioned charges only apply if the real estate disposal is of the trust’s property. The shareholders’ disposal of real estate is completely exempt from any charges.

How to Apply for REIT Privileges Registry by DLD

Trusts can follow these steps to register in the privilege registry with DLD:

Required Documents

In order to be one of the trusts, you should submit the following documents for the REIT privileges registry by DLD:

• Commercial licence issued by the relevant authorities in line with Decree No. 22 of 2022.
• Real estate assets owned by the trust must be valued at a minimum of AED 180 million.
• Valid copies of the Emirates ID or passport of all the real estate investment fund founders.
• A copy of an approved authorisation document that permits a person to handle the registration process.
• A DFSA-approved fund manager is mandatory.
• A contract of incorporation of the fund stating the number of founders and the share value of each founder.

Process

There is a process that should be followed to register; here is the DLD REIT privileges registration process via Real Estate Services Registration Trustees Centres:

• Go to your nearest Real Estate Services Registration Trustees Centre.
• Submit the required documents for registration.
• Wait for the employee to enter the data into the system and verify the details.
• Pay the fees through a cheque, a credit card or M69ePay Smart Payment and receive payment receipts.
• Receive a real estate ownership e-certificate with a DLD privilege registration number via email.

Service Terms and Conditions

Before proceeding with the registration, have a look below at the terms and conditions for the REIT privileges registry by DLD to make sure you are aligned with all of them.

• Founders’ names on the commercial licence must match the real estate asset owners.
• A valuation certificate no older than six months is required to prove the minimum asset value.
• The person authorised to handle the registration must possess an official power of attorney or an approved decision of the Board of Directors.
• The Memorandum of Association for the fund must state shareholders’ names and share values.
• DLD has the right to remove a real estate fund from the Privilege Register in any of these cases:
  • Loss of conditions of incorporation.
  • Declaring bankruptcy.
  • Liquidation of assets.
  • Restriction of a real estate fund activity by the court.
  • Real estate investment deletion.

Fees

Here is a breakdown of the REIT privileges registry by DLD fees:

• Registration Fee: AED 10,000 for registration in the Privilege Register.
• Flat Fees: AED 50,000 per real estate project included in the fund at the time of incorporation.
• Purchase of Real Estate Fees: 2% fees are charged if the trust buys property under its name.
• Selling Real Estate Fees: 4% of the property’s market value.
• Registration of Long-term Lease or Usufruct Fees: 2% of the property’s market value.
• Waiver of Right of Usufruct or Long-term Lease Fees: 4% of the property’s market value.

FAQs

That concludes our guide to the REIT privileges registry by DLD. This new initiative offers impressive benefits, allowing real estate investors to earn higher returns and invest in a thriving market.

Meanwhile, you can learn about the commercial vs residential real estate investments to choose the right fit for your budget and needs.

Share