FG invests N150bn in real estate fund
CHIGOZIE AMADI
The Federal Government of Nigeria, through the Ministry of Finance Incorporated, has fully subscribed to the Series 1 issuance of N150bn for the Real Estate Investment Fund.
In a recent statement, it was revealed that the full subscription to the Series 1 Fund underscores the FG’s role as the sponsor while empowering the private sector to lead the implementation and management of the initiative.
The Ministry of Finance Incorporated Real Estate Investment Fund is an initiative of President Bola Tinubu’s vision, championed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to improve homeownership and spur inclusive economic development.
“By seeding the fund with N150bn, the Federal Government has laid a strong foundation for MREIF’s success, ensuring its sustainability and long-term impact under the stewardship of private sector expertise,” part of the statement read.
The appointed Fund Manager for MREIF, ARM Investment Managers, will oversee the deployment of funds to provide long-term, low-cost mortgage financing for homeowners and offtake guarantees for developers. These measures are set to ensure the improvement in homeownership and the timely delivery of quality, affordable housing across Nigeria while boosting economic growth.
MREIF aims to transform Nigeria’s housing landscape by facilitating access to low-cost, long-term mortgages for aspiring homeowners. The fund also has the objective of incentivising real estate developers through offtake guarantees to raise funding for the construction of affordable housing units as well as stimulating job creation and boosting economic activity in the construction and real estate industries.
MOFI revealed that with the successful subscription of the entire N150bn in Series 1 issuance and the allotment of 100 per cent of the units to MOFI, the Series 2 issuance of N100bn will be open for private and commercial investors, subject to the Securities and Exchange Commission’s approval.
“This is a unique opportunity for institutional investors, high-net-worth individuals, and other private stakeholders to participate in a transformative initiative that promises both economic impact and competitive financial returns,” the statement further read.
By investing in MREIF, MOFI said, “Private investors will be supporting the improvement of homeownership in Nigeria while also benefiting from attractive returns on investment, diversification of their portfolios with a focus on impact-driven projects, contribution to Nigeria’s economic growth and housing solutions, and alignment with the United Nations’ Sustainable Development Goals.”
