While watching the nonstop London Summer Olympics coverage recently, I was struck by the global appeal of this mega sporting extravaganza. As the Games come to a close following two full weeks of competition, as expected the world’s two greatest superpowers, the US and China, racked up impressive overall medal counts. But for me, the Games are always about the stories behind the athletes themselves, and of the individual standouts who inevitably emerge from countries large and small.

The same is true for the increasingly global nature of institutional real estate, which, for the time being anyway, we could dub the “Property Olympics.”

A good example is the pending debut of REITs in the Republic of Kenya in East Africa. By year’s end, REITs are expected to debut in tiny Kenya with 43 million residents, after the country’s Capital Markets Authority finalized the REIT framework.

The concept of creating REITs in Kenya is not exactly new, having been first floated in 2008. The initiative stumbled in 2009 when the Kenya Revenue Authority had concerns over the tax-exempt status typically given to REITs, but was rekindled in 2011 when a new finance bill proposed tax incentives on REITs to create new residential housing stock that is sorely needed in Kenya’s urban areas. Emerging markets like Kenya view the creation of REITs as a way to expand the country’s property investment market via a larger worldwide stage, since it opens the doors to individual investors.

This is the same concept embraced in the US when the REIT Act of 1960 was enacted by Congress and launched one of the largest providers of capital for commercial real estate. Ultimately, creating a market for REITs improves and expands the availability of capital. Countries with healthy, transparent capital markets encourage investors to grow their portfolios for the future and participate in the potential appreciation that commercial real estate can provide.

REITs certainly have become increasingly popular in a variety of countries. Earlier this year, Goldman Sachs announced its intention to set up a new private REIT in Japan to snatch up undervalued properties there. This follows a Deutsche Securities pronouncement in February that Japanese REITs (or so-called J-REITs) would double their capital raise in 2012 over 2011, totaling an estimated $6.2 billion.

In Kenya, Housing Finance managing director Frank Ireri expects REITs to play a significant role in spurring growth in the country’s property market. “The market is ready for REITs,” he said. “They’ll give an opportunity for all to participate in the property market. Owners will also be able to partially transfer buildings to REITs in ratios of choice.”

Kenyan REITs will be structured either as development and construction REITs or income REITs. D-REITs will be limited to the acquisition of real estate and undertaking development of residential and commercial properties for sale or lease and will be allowed to convert into I-REITs. They, in turn, will acquire and invest in income-producing properties.

REIT securities will trade in the form of unit trusts through listing on the Nairobi Securities Exchange. Investors will need a minimum of roughly $12,000 to subscribe for REIT units. The CMA will require D-REITs to have a minimum of seven investors and a minimum initial capital of around $12 million, while I-REITs must have about $36 million in minimum capital. The regulations also require a REIT fund to keep at least 25% of the total securities as free float at any time for sale to independent investors other than its promoters or managers.

Income REITs will be required to invest at least 75% of their total asset value directly in income-producing real estate within two years. At the end of that term, they should be earning 70% of their income from rent or direct investments from real estate, and they must also distribute a minimum of 80% of their annual net income to qualify for tax benefits.

While the many obstacles to setting up global REITs have delayed immediate adoption, as with any new challenge, success will surely be proven by performance on the global stage. After all, just about anything seems possible if Jamaica can field a competitive bobsledding team, right?

Ben Johnson is a contributing editor to Real Estate Forum and GlobeSt.com. He may be contacted at [email protected]. The views expressed here the author’s own.