Real estate trust to unlock 'national wealth' to ordinary citizens

More people can look forward to new investment opportunities through a government-sponsored real estate trust, and a $1 billion bond under the National Investment Fund.

Finance Minister Davendranath Tancoo announced the creation of the Real Estate Investment Trust (REIT) in his $59 billion budget on October 13.

Tancoo said the goal is to "democratise state-owned assets, strengthen and diversify our capital market and broaden public participation in national wealth creation."

Describing the trust as a "landmark initiative," Tancoo said it would be source of non-debt financing. He said high-value income-generating properties, including land, office buildings and commercial infrastructure would be transferred to REIT which would be listed on the local stock exchange. This he said would allow ordinary and institutional investors to earn dividends from real estate.

"At the same time, the state retains a strategic stake in these assets," he said, adding that a high-level technical committee will be appointed to oversee the process and provide transparency and accountability.

He said the initiative would set TT as a "regional pioneer in innovative financing and empowers our citizens to share directly in the prosperity of the nation."

"Given the healthy domestic investor appetite, this measure is expected to contribute significantly to the government’s revenue stream."

Tancoo also disclosed that the National Investment Fund Holding Co Ltd (NIF) will launch a $1 billion bond in the 2026 fiscal year.

This, he said, is also an opportunity for ordinary citizens and small businesses to invest and build personal wealth, in a safe, tax-free environment without increasing public debt.

He said the bond would be backed by 21 per cent of the shareholding of First Citizens Group Financial Holdings Ltd (FCGFH) valued at an estimated $2 billion. He said government retained "indirect and beneficial" 60.11 per cent majority ownership ownership of First Citizens Group. Government's shareholding in First Citizens Group, as corporation sole, is held under First Citizens Holdings Ltd.

This NIF bond is due to be issued in the second quarter of 2026.