Launch of USD 100 million real estate investment projects financed through the capital market

Launch of USD 100 million real estate investment projects financed through the capital market

The Real Estate Closed-end Mutual Funds (FCICI) are gaining prominence in the real estate business. Several projects have already been presented in search of attracting money from the capital market and it is estimated that 10 of these plans will be announced in the short term, bringing together an investment of more than 100 million dollars.

FCICIs are collective investment financial vehicles made up of assets that are nourished by the contributions made by investors subscribing shares and becoming shareholders of the fund. They are similar to REITs (Real Estate Investment Trusts), which originated in the US and were created to enable a broad investor base to participate in real estate assets, and which also operate successfully in Mexico, Spain and Chile, among other countries. 

A resolution of the National Securities Commission (CNV) created a "special regime of Collective Investment Products" for the real estate and construction sectors, which is bearing fruit with the launch of several housing developments. 

CNV president Adrián Cosentino announced that the agency is preparing to approve a significant number of real estate investment funds during a meeting with the real estate development community and chambers of commerce to evaluate the functioning of the new collective investment vehicles for this key sector to reactivate the real economy. 

The FCICI, which will be financed through the capital market, will allow the construction of housing in different parts of the country, and will offer units for different audiences. In some cases, they are mixed-use projects that combine residential with offices and commercial service areas.

The CNV's announcement was made during a virtual meeting attended by more than 70 representatives of entities such as Valentín Galardi, head of the Argentine Chamber of Mutual Funds (CAFCI), Iván Szczech, head of the Argentine Chamber of Construction (Camarco), John Walker of Dracma (which will promote the first project of this type in Córdoba); Carlos Spina, of Argencons, and Juan Politi of Alaria Fondos, among others. Matías Isasa, director of the CNV, and executives from the industry, the sector's institutional chambers, provincial stock exchanges, private funds and law firms also participated

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