The funds
Two funds. One buys outright, one builds at scale.
You invest in Tawakkul Real Estate Investment Trust. Underneath it sit two funds, and the only decision that really matters is which one your money goes into — because that decides what it builds.
Buys and builds Canadian homes with equity alone. No mortgage, no loan, no interest paid or received — at any level of the structure.
Choose this if your objection to interest is absolute. This is the fund the published Fatwa covers, and it is the one most people here are investing in.
Invest in the Tawakkul FundThe bigger developments — the ones anchored to a masjid or a school, at a scale equity alone cannot reach. Projects of that size need financing to be built at all, so this fund uses Shariah-compliant financing to make them happen, and is oriented towards the income they produce.
Choose this if you want your money behind the larger community developments, and the income orientation that comes with them.
Invest in the Ethical Income FundA Shariah-compliant alternative to a conventional mortgage fund: income produced by financing Canadian homes rather than by lending at interest. Built for investors who want distributions sooner rather than at the end of a development cycle.
For Investors who want income rather than growth, and who have been waiting for a halal alternative to the mortgage funds their advisor keeps suggesting.
A separate corporation, not a series of Tawakkul REIT. It has its own offering document, and subscribing to the Trust does not buy it. Register your interest and we will tell you the day it opens.
Tell me when it opensWhat both of them own
Neither fund holds shares, screened stocks or paper. Both hold Canadian residential property — land, homes and the rent they produce — through partnerships that own the buildings directly. Your money buys a fraction of real buildings, and your return comes from what those buildings earn and what they become worth.
The Trust's assets are held by an independent trustee. Tawakkul never holds your money — your cheque or transfer is payable to the Trust and goes to the trustee.
Units are priced at the Trust's net asset value, struck at the close of the last business day of each month and audited annually by an external firm.
Drake Financial Ltd. is the registered exempt market dealer. They assess whether this suits you, and they can decline.
The unit series, for anyone who wants the mechanics
You are buying units of one trust, not of the funds themselves. The Trust issues its units in five series, and the series is what routes your money to one fund or the other. Your dealing representative records the series on your subscription; you do not have to work it out yourself.
| Series | Goes to | Borrowing |
|---|---|---|
| Series A-1 | Ethical Income Fund LP | Leverage permitted — up to 30% of the Trust's net asset value, and up to 80% at the underlying partnership level |
| Series A-2 | Tawakkul Fund LP | No leverage at all |
| Series A-3 | Allocated between both master partnerships | Depends on the allocation the Trust makes |
| Series F | Allocated between both master partnerships | Depends on the allocation the Trust makes |
| Series I | Allocated between both master partnerships | Depends on the allocation the Trust makes |
The Offering Memorandum states that the Trust does not anticipate using leverage but may do so for funds invested in the Ethical Income Fund LP, including via Series A-1 Units, and does not intend to exceed 30% of the Trust's net asset value. At the underlying partnership level the Ethical Income Fund LP may finance up to 80% of asset value, or up to 95% of costs where CMHC-supported. The Tawakkul Fund LP may not use leverage at all. Series I carries a $500,000 minimum; the others are $500.
Which one do most people choose?
Can I put money in both?
Why does the Ethical Income Fund need its own certification?
What if I change my mind about which fund?
See what applies to you.
Four questions, and the rules for your province.
Or book fifteen minutes, or call 905 949 9119 and we will walk you through it.
No commitment
Send me the Offering Memorandum.
One form, and we will send you the document and follow up once. No obligation, nothing submitted, and nobody added to a list you did not ask for.
- The Offering Memorandum, sent to you
- A person who answers questions, not a call centre
- No obligation, and no chasing
Thank you — that is all we needed.
Someone will be in touch within one business day. If you would rather not wait, call 905 949 9119 or message us on WhatsApp.
Read the Academy while you wait