Romania: Certinvest to Launch Mutual Fund for Real Estate Projects
Certinvest will launch a mutual fund for real estate investments, aimed for new small and medium-sized residential projects, the company’s manager, Eugen Voicu said.
“The value of fund units will be EUR 1,000 while the recommended period for detaining will be 1-2 years, meaning the period it takes to develop the project, the minimum detainment within the fund being EUR 10,000,” Voicu explained.
According to Voicu, the yields of the fund will be 5-6% per year in euro, and in lei they will reach 9-10%.
“The initial investments will initiate at least five residential real estate projects.
The fund will be able to get revenues from renting the properties it invests in”, Voicu added.
He said that such a fund is an alternative to get a down payment for a mortgage credit.
According to Voicu, the real estate mutual funds are a way to get the down payment in order to contract a mortgage credit from the bank.
“In Hungary, for example, there is a law regulating the activity of these investment vehicles, which caused the market to boom”, Voicu continued.
Certinvest is controlled by the Romanian-American Fund for Investments (FRAI). Certinvest administers four mutual funds - Capital, Tezaur, Intercapital and Orizont.
Source: reporter.gr
