Singapore’s first Islamic real estate investment trust (REIT), Sabana REIT, was listed on Friday and attracted plenty of attention from Muslims and ‘conventional’ investors alike, a quarter coming from the Middle East. HSBC’s Islamic unit HSBC Amanah is now exploring other opportunities in Malaysia and Singapore, with predictions that Sabana will pave the way for other Islamic REITs to follow sometime in 2011 and after.

Sabana REIT is the world’s largest Shariah-compliant property trust. Last week’s IPO saw 508 million units sold at S$1.05 (US$0.79) each and, although the IPO was 2.5 times subscribed, a nervous market saw that price fall to S$1.02 by closing time on Friday. HSBC Amanah’s CEO Rafe Haneef said he expected the percentage of Gulf investors to increase with future Asian offerings.

source & article: Reuters via alwatandaily

see also: Malaysia launches first Islamic REIT to local Muslim Malays and indigenous investors under a government plan to encourage local investment in property.