ARA Asset Management (ARA) says it has signed an Memorandum of Understanding with Qatar-based Regency Group to jointly manage a Shariah-compliant real estate investment trust (REIT) to be listed on the Singapore Exchange.

The proposed REIT is expected to comprise primarily of hospitality properties, including hotels and serviced apartments, located in Qatar, which will be contributed by the Regency group as the sponsor of the REIT.

The initial portfolio includes a total gross floor area of 164,000 sqm. DBS Bank is the financial advisor for the proposed transaction.

Headquartered in Doha, the capital of Qatar, the Regency Group is one of the leading real estate developer and investor in the Gulf Cooperation Council (GCC) with an extensive portfolio of hospitality, residential, commercial and retail properties in Qatar.

Qatar has the third largest natural gas reserves and second highest per capita GDP in the world.