The General Authority for State Real Estate intends to launch a real estate fund “REIT” at the end of this year, while 500 million square meters have been allocated for housing projects with the aim of raising the ownership percentage to 70%.
According to Ihsan Bafakih, Governor of the State Real Estate Authority, the authority began several months ago to establish a real estate fund “REIT” by allocating a real estate portfolio for listing in the financial market. Bafakih expected the fund to be launched at the end of this year.
And he indicated that this comes within the financial solutions of the authority, which includes the inclusion of some real estate as a traded real estate investment fund (REIT), in addition to building headquarters in partnership with the private sector, and listing real estate in the state budget. He added that the strategic directions of the authority to achieve a development and economic return from its work is the use of state lands for development through its allocation to the Ministry of Housing and the Public Investment Fund.
He explained that the authority allocated 500 million square meters during the past two years for projects of the Ministry of Housing in cooperation with real estate development companies, with the aim of providing housing units for citizens.
He stated that many real estate properties that have economic and commercial feasibility have been transferred to the Public Investment Fund to benefit from them.