Acumen-Beltone is planning to start promoting the real estate investment fund the company has won to manage among local investors, as well as the investors and institutions in the Gulf area with the aim of subscribing to it in the first quarter of 2017, managing director of Acumen Rana Adawi said.
She mentioned that, of course, the company will promote the subscription to the fund among foreign institutions, although it will require more effort as this fund would be the first real estate investment fund in the Egyptian market.
Adawi told Daily News Egypt that Acumen-Beltone is working with the Housing and Development Bank (HDB), as the fund’s issuer, on conducting its offering memorandum.
She added that the company is discussing with the Egyptian Financial Supervisory Authority (EFSA), at the request of the HDB, modifications to some of the controls in the executive regulations of the capital market. This includes the regulating rules of real estate fund work, such as the percentage of capital the fund can put in one company or sector as compared to its total capital.
Adawi mentioned that the company hopes to decide on these points with the EFSA and obtain the licence for issuing the fund at the beginning of next year in order to begin the promotion plan.
The controls of real estate funds stipulate that 70% of the fund’s money in real estate assets must be invested in making revenue, and the fund’s ownership in real estate development companies may not exceed 20% of its assets.
The rules also stipulate that the fund may only own 30% or less in the assets of any real estate project.
Adawi said that the proper climate for real estate funds must be provided so as to attract savings from institutions and individual investors with varied financial solvencies, as they enable the individuals with limited liquidity to invest in the real estate sector through buying shares in these funds.
The target size of the real estate fund that the HDB will issue is EGP 500m. Acumen-Beltone was established through a contribution of 40% by Acumen Holding, 40% of BBI, formerly Beltone Capital, and 20% by businessman Hany Tawfik, head of Acumen-Beltone.