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Real estate companies in Ghana to have access to cheaper funding sources by June 2020

Kojo Addae Mensah Kojo Addae Mensah, the Group CEO of Databank

Mon, 17 Feb 2020 Source: pulse.com.gh

Ghana’s Securities and Exchange Commission (SEC) is putting measures in place to ensure that real estate companies in Ghana have access to cheaper funding sources to undertake their projects by June this year.

This is because the SEC is expected to launch a Real Estate Investment Trust regulatory framework by the end of June this year.

The Group CEO of Databank, Kojo Addae Mensah, said this move if successful will ensure the availability of a cheaper alternative source of raising revenue to finance real estate projects. He added that this would significantly boost the country’s real estate sector.

“We are working with a real estate company and SEC. Initially, we were expecting by the end of March we would have launched it, but it is not looking likely; the earliest we would get is second quarter.”

“It will help the real estate industry raise funding for projects using the mutual funds for very good projects because generally raising funds for real estate is very difficult,” he stated.

A real estate investment trust is a firm that owns, operates or finances income-producing real estate.

REITs give all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive, and revitalize.

Source: pulse.com.gh