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Securities Commission Malaysia provides guidance on paragraph 8.09(a) of the Guidelines on Listed Real Estate Investment Trusts

30 March 2026

 
The Securities Commission Malaysia has amended the Guidelines on Listed Real Estate Investment Trusts (“Listed REITS Guidelines”) to provide guidance on paragraph 8.09(a) of the Listed REITS Guidelines. This amendment took effect immediately on the date of issuance of the amended Listed REITS Guidelines on 27 March 2026.
 
Paragraph 8.09(a) of the Listed REITS Guidelines requires a management company (“management company”) to ensure that the listed real estate investment trust (“REIT”) has good marketable legal and beneficial title in all its real estate.
 
The new guidance to paragraph 8.09(a) of the Listed REITS Guidelines provides that where the legal title to a real estate is not transferred to the REIT on the completion date of the sale and purchase agreement, the management company is expected to :
  1. obtain a legal opinion from a suitably experienced legal firm specialising in real estate matters, ensuring or confirming, as the case may be, that relevant and appropriate measures are in place towards ensuring that such transfer of legal title is completed; 
  2. take reasonable steps to effect the transfer of legal title in favour of the REIT and is satisfied that the REIT will have good marketable legal and beneficial title in the real estate upon completion of the transfer; and 
  3. make relevant disclosures to the unit holders of the REIT regarding the risks associated with the transfer of title and the measures implemented to mitigate such risks. 
The new guidance to paragraph 8.09(a) is welcomed as it promotes greater transparency and imposes clear obligations on the management company to take reasonable steps to ensure that the transfer of legal title to the real estate is perfected without undue delay.
 
 
Alert by Jesy Ooi (Partner) of the Real Estate Practice of Skrine.

This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.

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