Misr Financial Investments Company (MFIC), a subsidiary of Misr Insurance Holding Company, intends to establish a real-estate fund in 2017 and to raise the size of its assets through diversifying its investments.
Chairperson of MFIC, Atef Al-Mahmoudy, told Daily News Egypt that the real-estate fund will be established in cooperation with Misr Insurance Holding, Misr Life Insurance Company, and Misr Insurance, noting that the capital of the fund is estimated at EGP 500m.
He added that the company aims to establish new funds this year through the partnership it signed last year with HC Securities and Investment. He explained that the partnership aims at winning the management of private insurance funds that are worth over EGP 100m.
MFIC is currently managing the Wafi Fund of the Misr Iran Development Bank. The fund invests in mutual-fund certificates.
The company also manages Misr Investment and Financing Fund. Al-Mahmoudy said that over the first six months of the fiscal year (FY) 2016/2017, profits of the fund grew to EGP 24m, up from EGP 14m in the entire past FY 2015/2016, expecting profits to register EGP 45m at the end of the current fiscal year, recording a growth of 221%.
He attributed the increase in profits to the high returns realised by the fund’s investments, driven by the increased interest rates and the recovery of stock markets.
Moreover, the fund owns 98% of Luxor Marassi with investments of EGP 98m. Al-Mahmoudy said that the company aims to contribute to establishing two real estate projects in Cairo with total investments worth EGP 200m.
He pointed out that the company won a judicial ruling against Luxor governorate, under which the company will be refunded EGP 95m from the governorate.
He noted that MFIC is 60% owned by Misr Insurance Holding Company, while Misr Life Insurance owns 29%, and Misr Insurance owns 11%.
MFIC was established in 2009 with a capital of EGP 10m, which was later increased to EGP 11m with contributions from its owners. The company distributes annual dividends to its shareholders.