Key Takeways:
What is a Redemption?
A redemption is the process of converting your fund shares back into cash. When you invest in the Wahed Real Estate Fund, you receive shares that represent your stake in the portfolio. A redemption allows you to exit part of that position by returning those shares to the fund at their current value.
Because the fund holds physical real estate rather than publicly traded securities, windows are scheduled rather than on demand, and that structure is what allows the fund to operate with zero debt and focus on long-term value for investors.
This guide covers the Real Estate Fund redemption process only. If you have invested in Private Real Estate individual property deals, those investments exit when the property is sold at the end of its holding period.
The Six-Month Holding Period
Every share you receive has a six-month lock-up period from the date your subscription agreement is countersigned. You cannot submit a redemption request for those shares until the holding period expires.
The subscription agreement is signed at the end of the calendar month in which you invest. This means your lock-up period starts from that end-of-month date, not the exact date of your investment.
Each batch of shares you purchase has its own lock-up clock. If you invest multiple times, each investment is tracked separately.
How Redemption Windows Work
There are two redemption windows each year. Each window has a fixed deadline for submitting redemption requests, a pricing date and a payment date.
How a Redemption Window Works
To participate in a window, you must submit your redemption request at least one month before the window closes. This means your deadline is June 1 for the July window and December 1 for the January window.
Requests submitted after these deadlines will roll over to the next window.
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
NAV stands for Net Asset Value. Your payout is based on the NAV per share on June 1 or December 1, whichever applies to your window. If the fund's properties have grown in value, your NAV per share will be higher than what you originally paid. NAV is calculated using the following formula: NAV = (Total Asset Value – Total Liabilities) / Total Shares Outstanding Total Asset Value includes the value of all real estate holdings, cash, cash equivalents, receivables, and accrued income. Total Liabilities includes any outstanding fees, pending distributions, management expenses, audit fees, and operational costs such as insurance and utilities
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
The Redemption Fee Schedule
A fee applies to redemptions depending on how long you have held the shares being redeemed. The fee is calculated on the value of the shares being redeemed, not your total investment.
The fee is deducted from the proceeds before cash is paid to you. You receive the net amount after the fee.
Because shares are redeemed on a first-in, first-out basis (your oldest shares are redeemed first), longer-held shares are always redeemed before newer ones. This means the fee you pay will naturally decrease over time as your holding period grows.
How Redemption Pricing Works
Your redemption is priced at the Net Asset Value (NAV) of the fund on the pricing date for that window. The pricing dates are June 1 for the July window and December 1 for the January window.
NAV reflects the current assessed value of the fund's property portfolio, after liabilities and expenses. It is calculated independently and is not based on the price you originally paid for your shares.
If the fund's properties have appreciated in value since you invested, your NAV per share will be higher than your original purchase price. If values have declined, it may be lower. This is how real estate investing works: capital appreciation (or a decrease) is realised when you exit.
You will be notified of the applicable NAV before or at the time your redemption is processed.
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
NAV stands for Net Asset Value. Your payout is based on the NAV per share on June 1 or December 1, whichever applies to your window. If the fund's properties have grown in value, your NAV per share will be higher than what you originally paid. NAV is calculated using the following formula: NAV = (Total Asset Value – Total Liabilities) / Total Shares Outstanding Total Asset Value includes the value of all real estate holdings, cash, cash equivalents, receivables, and accrued income. Total Liabilities includes any outstanding fees, pending distributions, management expenses, audit fees, and operational costs such as insurance and utilities
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
How to Calculate Your Eligible Shares
Not all of your shares may be eligible for redemption in any given window. Only shares that have completed the six-month lock-up period are eligible.
To calculate your eligible shares:
- Check your total shares held.
- Identify which shares are still within the six-month lock-up window based on when each subscription agreement was countersigned and sent to you via email.
- Subtract locked shares from your total. The remaining amount is your eligible share count.
- Apply the 10% per-cycle cap (see next section) to your eligible shares to find your maximum redemption amount for this window.
The 10% Limit Per Cycle
In any single redemption window, you can redeem up to 10% of your eligible (unlocked) shares. This limit applies per window, not per year.
If you submit multiple redemption requests within the same window, they are added together and treated as a single request on the closing date. The combined total still cannot exceed 10% of your eligible shares.
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
NAV stands for Net Asset Value. Your payout is based on the NAV per share on June 1 or December 1, whichever applies to your window. If the fund's properties have grown in value, your NAV per share will be higher than what you originally paid. NAV is calculated using the following formula: NAV = (Total Asset Value – Total Liabilities) / Total Shares Outstanding Total Asset Value includes the value of all real estate holdings, cash, cash equivalents, receivables, and accrued income. Total Liabilities includes any outstanding fees, pending distributions, management expenses, audit fees, and operational costs such as insurance and utilities
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
What Happens After You Submit a Request
- You submit your redemption request by emailing realestate.us@wahed.com, specifying the number of shares you want to redeem.
- Your request is recorded and sits in a pending state until the window closes.
- On the pricing date (June 1 or December 1), the NAV is calculated and locked in for this window.
- In July or January (depending on the window), all eligible requests are processed.
- The applicable redemption fee is deducted from your proceeds.
- Cash is scheduled to be deposited to your registered bank account by July 21 for the July window and by January 21 for the January window.
- You receive an email confirmation when the cash has been sent.
Your remaining shares stay invested in the fund and continue to be eligible for future distributions and future redemption windows.
Cancelling a Redemption Request
You can cancel a redemption request at any time before the window opens. The final cancellation deadlines align with the submission cutoffs: June 1 for the July window and December 1 for the January window.
Once the window closes and processing begins, requests cannot be cancelled or reversed. If you want to change the number of shares in your request before the deadline, cancel the existing request and submit a new one.
To cancel, contact our support team at realestate.us@wahed.com.
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
NAV stands for Net Asset Value. Your payout is based on the NAV per share on June 1 or December 1, whichever applies to your window. If the fund's properties have grown in value, your NAV per share will be higher than what you originally paid. NAV is calculated using the following formula: NAV = (Total Asset Value – Total Liabilities) / Total Shares Outstanding Total Asset Value includes the value of all real estate holdings, cash, cash equivalents, receivables, and accrued income. Total Liabilities includes any outstanding fees, pending distributions, management expenses, audit fees, and operational costs such as insurance and utilities
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
Yes, at any time before the submission deadline: June 1 for the July window and December 1 for the January window. After the deadline passes, the request cannot be reversed. Cancel by contacting realestate.us@wahed.com.
Worked Examples
Example 1: First-Time Redemption
Scenario: You invest $10,000 on January 1, receiving 1,000 shares. Your subscription agreement is signed January 30.
- Your shares are locked until July 30 (6 month holding period).
- The mid-year window deadline is June 1. Your shares are still locked, so you cannot participate.
- The January window redemption request deadline is December 1. Your shares unlocked July 30, so you are eligible.
- You submit a request to redeem 50 shares (5% of your 1,000 eligible shares, within the 10% cap).
- You have held these shares from January 30 to January (approximately 12 months). The 2% fee applies.
- Pricing is based on NAV on December 1.
- Cash arrives by January 21.
Example 2: Multiple Investments, Partial Eligibility
Scenario: You hold shares from three separate investments.
- 1,000 shares from January 30 (subscription date). Lock-up ends July 30.
- 500 shares from April 30 (subscription date). Lock-up ends October 31.
- 750 shares from November 30 (subscription date). Lock-up ends May 30 next year.
At the January window (submission deadline December 1):
- Your 1,000 January shares are unlocked. Eligible.
- Your 500 April shares are unlocked. Eligible.
- Your 750 November shares are still locked. Not eligible.
Your total eligible shares are 1,500. The 10% cap means you can redeem up to 150 shares in this window. Your oldest shares (the January batch) are redeemed first, so those 150 shares come from your January investment.
Example 3: Partial Redemption, Then Full Exit
Scenario: You hold 1,700 shares. All are unlocked. You redeemed 50 shares in a previous window.
- You now submit a request to redeem 10% of 1,700, which is 170 shares.
- These shares were issued January 30, now 13 months ago. The 1% fee applies.
- You receive proceeds by January 21, minus the 1% fee.
- You still hold 1,530 shares in the fund after this redemption.
Example 4: Shares Held Over 5 Years
Scenario: You have held 500 shares for more than 60 months. All are unlocked and eligible.
- The 10% cap means you can redeem up to 50 shares in this window.
- No redemption fee applies on any of these shares as they have been held over 60 months.
- You receive the full NAV value of those 50 shares with nothing deducted.
- You can continue redeeming fee-free in future windows until your full position is exited.
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
Frequently Asked Questions
After the six-month lock-up period from the date your subscription agreement is signed. The subscription agreement is signed at the end of the calendar month in which you invest. Your first eligible redemption window will be whichever of the two annual windows falls after your lock-up ends and before its submission deadline.
To submit your redemption request, email us at realestate.us@wahed.com. Submit your request in units (number of shares), not in dollar value. The deadline is June 1 for the July window and December 1 for the January window.
Your request will automatically roll over to the next window. Requests submitted after June 1 will be processed in the January window, and requests submitted after December 1 will be processed in the July window of the following year.
No. The limit is 10% of your eligible (unlocked) shares per window. If you want to exit a larger portion of your investment, you will need to spread redemptions across multiple windows.
NAV stands for Net Asset Value. Your payout is based on the NAV per share on June 1 or December 1, whichever applies to your window. If the fund's properties have grown in value, your NAV per share will be higher than what you originally paid. NAV is calculated using the following formula: NAV = (Total Asset Value – Total Liabilities) / Total Shares Outstanding Total Asset Value includes the value of all real estate holdings, cash, cash equivalents, receivables, and accrued income. Total Liabilities includes any outstanding fees, pending distributions, management expenses, audit fees, and operational costs such as insurance and utilities
Only on the shares you redeem. If you redeem 100 shares at a NAV of $12 each and the 2% fee applies, the fee is 2% of $1,200, which is $24. Your remaining shares are unaffected.
Your oldest eligible shares are redeemed first (first-in, first-out). This means you naturally benefit from a lower fee over time, because your longest-held shares will have the lowest or no redemption fee.
Yes, at any time before the submission deadline: June 1 for the July window and December 1 for the January window. After the deadline passes, the request cannot be reversed. Cancel by contacting realestate.us@wahed.com.
Cash is scheduled to be paid by July 21 for the July window and by January 21 for the January window.
Until the window closes and shares are formally redeemed, you continue to hold those shares and remain eligible for distributions in the normal quarterly cycle. Shares are only removed from your account once the window processes in July or January.
