K&L Gates Advises HMK Capital LLC on Launch of Qatar's First REIT

Global law firm K&L Gates has advised HMK Capital LLC, a Qatari asset management firm, on the launch of Qatar’s first real estate investment trust (REIT).

Salwa REIT Fund is licensed by the Qatar Financial Centre (QFC) and regulated by the Qatar Financial Centre Regulatory Authority (QFCRA). It represents the first REIT in Qatar, providing investors with an efficient and accessible route to invest in income-generating real estate assets.

Subject to receipt of all required regulatory approvals, Salwa REIT is expected to be listed on the Qatar Stock Exchange (QSE), marking a significant milestone in the continued development and diversification of Qatar’s capital markets.

The establishment of Salwa REIT required close coordination with Qatar’s key regulatory authorities, including the QFC Authority, the QFCRA, the Qatar Financial Markets Authority, and the QSE. K&L Gates advised on the transaction’s complex legal, regulatory, and structural aspects, including establishing Qatar’s first REIT under the QFCRA’s Collective Investment Scheme Rules, setting a precedent for future REITs and similar investment structures in Qatar.

The firm advised HMK Capital LLC on all aspects of the fund’s establishment and proposed listing, including REIT structuring and preparation of core fund documentation, including the prospectus, articles of association, fund management agreement, and subscription documents.

Sheikh Hamad Mohamed Khalid Al-Thani, Chairman and Founder of HMK Capital said: “HMK Capital is committed to working within the capital market ecosystem in Qatar to contribute to market development. The launch of Salwa REIT aims to offer investors diversified exposure to income generating properties in addition to increasing liquidity and transparency in the real estate market and contributing to the resilience of the real estate sector.”

Mohammad Tayyem, the company’s CEO added: “For HMK Capital, Salwa REIT is about turning a clear market opportunity into a practical, investable platform. Our focus has been to build a durable structure that investors can understand, rely on and grow with over time. Bringing Qatar’s first REIT from concept to reality required patience, discipline and conviction, and we are proud to have helped take this important step.”

The K&L Gates team was led by Doha-based senior partner Amjad Hussain together with Dublin partner Shane Geraghty. They were primarily supported by corporate, asset management, and regulatory team members across the firm’s Doha, Boston, and Dublin offices, including Simon Chan, Rhydian Wyn, Reine Haidar, Jonathan Landers, Randa Shiblaq, and Kristene Siena.

Commenting on the transaction, Hussain said: “We are delighted to have advised HMK Capital on the establishment of Qatar’s first REIT, a landmark transaction for the country’s real estate and capital markets sector. This reflects the continued evolution and sophistication of Qatar’s regulatory and investment landscape and demonstrates the strong collaboration between market participants and regulators in bringing innovative investment structures to the market. We believe Salwa REIT creates an important platform for broadening institutional and investor access to income-generating real estate assets in Qatar and will help support the continued development of the local funds and capital markets industry.”

Salwa REIT is expected to distribute returns to investors through income generated from its underlying property portfolio. The launch of this pathfinder fund is expected to enhance the range of regulated investment products available in Qatar and further reinforce the country’s position as an increasingly sophisticated regional financial center.