Syariah Compliance of Al-'Aqar Healthcare REIT

  • The Tenants of the Properties are operating as specialist hospitals in the healthcare sector, which are permissible activities according to Syariah;
  • The rental income of the Al-'Aqar Healthcare REIT are derived from Syariah permissible activities, i.e currently from the operations of specialist hospitals and shall remain guided by the 20% benchmark as determined by the Security Commission of Malaysia for the criteria on rental from non-permissible activities;
  • The Al-'Aqar Healthcare REIT will not own real estate in which allthe tenants operate non-permissible activities. The current tenants are alloperators of the respective specialist hospitals;
  • The fund managers of Al-'Aqar Healthcare REIT must not accept a new tenant(s) whose activity is fully non-permissible under Syariah. In the case of tenant(s) operating in mixed activities, method of calculating the portion of rental derived from non-permissible activities from the total rental must comply with the Guidelines for Islamic REIT;
  • The Al-'Aqar Healthcare REIT will ensure all forms of investment, deposit and financing instruments comply with Syariah principles. Al-'Aqar Healthcare REIT will be raising an Islamic financing facility to finance the acquisitions of the Properties;
  • The Manager will obtain and maintain Takaful schemes insurance coverage on the assets of Al-'Aqar Healthcare REIT against fire and public liability, which are statutory insurance requirements as well as loss of rent insurance and other required insurances, if applicable. Only if the Takaful schemes are unable to provide the insurance coverage, then the Al-'Aqar Healthcare REIT is permitted to use conventional insurance schemes;
  • General compliance, where relevant, on any other requirements as stipulated under the Guidelines for Islamic REIT; and
  • The Syariah Committee Members of the Al-'Aqar Healthcare REIT has endorsed and approved the Al-'Aqar Healthcare REIT scheme to be in compliance with Syariah principles.