Bahrain's Eskan Bank has successfully acquired over 18 million units in the Eskan Bank Realty Income Trust (EBRIT), the nation's first publicly traded Real Estate Investment Trust (REIT). This significant acquisition, representing 9. 1% of EBRIT's total units, comes as part of a two-phase voluntary offering initiated by Eskan Bank in May 2024.
The voluntary offer allowed EBRIT unitholders to tender their units for purchase by Eskan Bank at predetermined prices. The offer was structured in two tranches, providing flexibility for unitholders. The first tranche offered a purchase price of 0. 100 Bahraini dinar (approximately $0. 27 USD) per unit for up to 50, 000 units from each unitholder. The second tranche offered a price of 0. 060 dinars per unit for up to an additional 1. 2 million units from each remaining unitholder. This two-tiered approach catered to both smaller and larger investors within the EBRIT structure.
Eskan Bank initially aimed to acquire up to 34. 7 million EBRIT units through the voluntary offering. The offer period has been extended until the closing date of the secondary offering on July 31, 2024, allowing additional opportunities for unitholders to participate. The settlement for the units accepted in the initial offering is expected to be completed by July 11, 2024.
This move by Eskan Bank signifies a strategic investment in Bahrain's growing REIT market. REITs pool investor capital to purchase and manage income-generating real estate assets. EBRIT, established in 2023, offers investors a chance to participate in Bahrain's property market while benefiting from potential rental income and capital appreciation. Eskan Bank's acquisition demonstrates confidence in EBRIT's future and the overall potential of Bahrain's REIT sector.
The acquisition is expected to bolster Eskan Bank's portfolio and diversify its revenue streams. EBRIT's focus on income-generating properties aligns with Eskan Bank's core business activities, potentially leading to synergies and a more robust financial position. This strategic move by Eskan Bank is likely to be closely monitored by industry analysts and investors, with potential implications for the future of Bahrain's REIT market.