How Tawakkul is built, from your unit to the building

Start with a building

At the bottom sit the Tawakkul Portfolio LPs. Each holds real property and does the work of acquiring it, improving it and eventually operating it. Keeping properties in separate partnerships means a problem at one site does not reach across into the others.

Two master partnerships above them

Above the portfolio partnerships sit two master limited partnerships, and the difference between them is the single most important thing to understand about this offering. The Tawakkul Fund LP uses no leverage at all — the Offering Memorandum states that investments in it may not use leverage. The Ethical Income Fund LP is permitted to use Shariah-compliant financing, which is what makes the larger community developments possible; at the partnership level that is permitted up to 80% of asset value, and up to 95% of costs where supported by CMHC.

The trust on top

Tawakkul Real Estate Investment Trust holds interests in the master partnerships. The trust exists for a specific reason rather than for tidiness: units of a trust can be held inside registered plans — RRSP, TFSA, FHSA, RESP, LIRA and the rest — where partnership interests are awkward or impossible. The Trust does not intend to leverage more than 30% of its net asset value.

The series, and what your letter means

You do not buy "the fund". You buy a series of units of the Trust, and the series determines which master partnership your money reaches. Series A-1 is allocated to the Ethical Income Fund LP. Series A-2 is allocated to the Tawakkul Fund LP — the one carrying no debt anywhere beneath it, and the series for an investor whose objection to debt is absolute. Series A-3 and Series F are allocated between both, as the Trust determines. Series I is institutional, with a $500,000 minimum. Series F exists for accounts held through an adviser who charges you a separate fee, so you are not paying twice.

Who holds what

The Trust's sole trustee is TSX Trust Company, a federally regulated trust company. The Trust's bank accounts are in the Trust's own name at Habib Canadian Bank, maintained under the trustee's authority. Ahmed Asset Management Inc. is the asset manager and is not registered as a dealer or adviser — it manages, and it does not hold your money or decide whether the investment suits you. Drake Financial Ltd., a registered exempt market dealer, does that. PwC Canada audits, Pinnacle Fund Administrators keeps the register, Olympia Trust is trustee of the registered plans, and McMillan LLP is counsel to the Trust.

Two stages, and why there is no income yet

Each portfolio partnership passes through a development stage — acquiring and improving property — and then an operation stage. The asset manager does not anticipate distributions during the first one to five years, while properties are in development. This is the single most common misunderstanding about the offering and it is stated in the Offering Memorandum. If you need income now, this is not the product for that, and a mortgage fund is a different conversation.

What the certification covers

The Islamic Finance Advisory Board's written Fatwa of 6 November 2025 confirms no qard and no riba component in the Tawakkul Fund — the fund that uses no debt. The Ethical Income Fund is being certified separately. That distinction is real and we would rather you read it here than discover it later.

Where to check all of this

Every claim on this page is in the Offering Memorandum filed on 30 April 2026, and that document governs. Where this page and that document differ, that document is right. Ask your dealing representative for it before you subscribe, and read Item 8, the risk factors, first.