Daily News Egypt learned that Naeem Holding for Financial Investments is studying establishing a new real estate investment fund and that advanced negotiations are currently underway to apply for incorporation.
The sources added that the target size is being determined and the investment policy will depend on investing in ready and rented properties that are not leased to foreign institutions.
The company launched its first real estate investment fund in Egypt in 2017 with a target size of more than EGP 1bn at the time.
The sources pointed out that there is interest in this type of funds currently to take advantage of the current opportunities in the Egyptian real estate market, pointing out that Banque Misr has also started procedures for establishing a company 100% owned by it to manage a real estate investment fund, and that the fund to be established will be handled by Banque du Caire and the Insurance Holding Company with an initial capital of EGP 500m.
Real estate investment funds are an investment tool available to the public, the units of which are traded in the financial market and are known globally as REITs with the aim of facilitating investment in the developed and ready-to-use real estate sector that generates periodic and rental income.
Naeem Holding made a profit of $2.8m during the first half (1H) of this year, compared to 1H 2021’s net loss of $1.27m.
The company’s total revenues, however, declined to $1.27m, compared to $1.73m.
Furthermore, the share of the owners of the holding company’s equity of the profits during the six months amounted to about $498,370, compared to losses of $2.01m.