EFSA: Two Firms Request Real Estate Fund Launch in Egypt
Egypt braces for the launch of two new real estate funds within the current, in accordance with the issuance of the market regulator’s approval.
Dr. Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority (EFSA), revealed Tuesday receiving official requests from two local companies expressed willingness to launch their own real estate fund in the market.
Earlier in April, Egypt’s financial market regulator, seeking to attract capital back to the stock market, released rules to facilitate the creation of real estate funds. The rules included permissible levels for income-generating assets as a percentage of each fund’s total assets.
The changes would increase liquidity in the market and draw more local and foreign investors, and in return contribute to the revival of the national economy, Samy noted.
The Egyptian official further told Amwal Al Ghad that the EFSA will look into the two companies’ demands for the launch of new real estate funds.
Egypt has recently witnessed a number of companies’ announcements of plans to launch a real state fund in the local market within the coming phase, including HC Securities & Investment.
Egypt-based HC revealed plans to launch a new real estate fund, with an initial capitalisation of EGP one billion, by the end of the current year. It comes within the framework of HC’s strategy to stimulate the volume of its current assets to EGP 10 billion, from EGP 6 billion.
In the same vein, HC chairman Hussein Choucri told Amwal Al Ghad in earlier statement, that Egypt’s mutual funds industry will witness within 2014 a remarkable return spurred by recent legislative amendments announced by the EFSA.
Another prominent name in Egyptian market that showed readiness to launch real estate funds was Acumen Holding, which announced plans to launch its new fund within the second half of 2014. Acumen’s new real estate fund is due to invest EGP 200 million in Egypt.
In this respect, Acumen’s Managing Director Rana Adawi said in earlier statement to Amwal Al Ghad, the Group’s decision to go for the real estate fund industry was triggered by the recent amendments by the EFSA that include the executive regulation of the mutual funds.
