SEC To Introduce Real Estate Investment Fund

The Securities and Exchange Commission (SEC) has disclosed plans to introduce a Real Estate Investment Trust (REIT) legislation, before the end of 2018.

SEC believes the legislation when in force, will facilitate a robust real estate sector. The Real Estate Investment Trust focuses largely on owning, operating or financing the real estate sector.

At the moment HFC is the only bank with a Real Estate Investment Trust.

Speaking to Citi Business News, Mr. Emmanuel Ashong-Katai, the Head of Policy Research and IT at the SEC, stated that, a thriving REIT regime in Ghana will offer investors good returns.

“What we have in mind is to develop a vehicle that will be able to attract a lot of investment into the real estate sector in this country. So we’re developing regulations that will enable people who want to establish REITs’ to mobilize funds and list them on the Ghana Stock Exchange.”

Mr. Ashong-Katai added that all was set for the coming into force of the legislation.

“We’re done with drafting the regulations for the REIT regime, which will soon be turned into regulations. The drafts are currently being reviewed to tighten any loose ends before it goes public. I can’t say exactly when the legislation will be coming out this year but I can assure you that it will come out before the end of 2018.”

Highlighting some of the benefits of the REITs, Mr. Ashong-Katai pointed out that investors earn good returns.

“All over the world the most important benefit is the returns on investments. REITs’ pay about 90 % of their profits in forms of dividend, and REITs’ in Ghana will be compelled by law to declare not less than 90 %. Other key benefits on the real estate sector will be the introduction of expert knowledge and injection of substantial finances into the country.”

Mr. Ashong-Katai was speaking on the sidelines of a press conference organized by GRIT Real Estate Income Group Limited.

About GRIT Real Estate Income Group Limited

GRIT Real Estate Income Group Limited (a Mauritius-based company), is a listed real estate income group operating in carefully selected African countries.

The company optimizes its structural investments underpinned by solid property fundamentals to achieve superior US Dollar and Euro returns.

GRIT has so far acquired two properties in Ghana, the first of which is the 100 percent owned office complex known as 5th Avenue Corporate Offices. It’s also acquired a 50% ownership of an office complex known as the CADS II Building, a commercial building located in North Dzorwulu, Accra.

GRIT intends on acquiring further blue chip tenanted real estate in Accra, worth about Two Hundred Million Dollars by the end of June this year.

The Investment Manager of Grit Matthew Jones revealed at the media interaction with selected journalists in Accra, that Ghana has been a longstanding target country for investment and has been approved as a prospective investment jurisdiction by Grit, based on the rigid investment criteria like ability to repatriate funds; ability to mitigate and insure against political and currency risk; ability to raise debt and conclude leases in hard currency among others.

The GRIT team also mentioned that the recent macro-economic and political developments in the country, and continued infrastructure improvements, continue to fortify Ghana, and Accra in particular, as one of West Africa’s primary economic and transport hubs.

These strong fundamentals, along with the relevant investment opportunities being presented, reinforced Grit’s resolve to actively pursue acquisitions in Ghana.