Real estate industry players in the country will by the end of the second quarter of this year have access to cheaper credit to undertake their projects.
This is because the Securities and Exchange Commission (SEC), has set its focus on launching a Real Estate Investment Trust regulatory framework by end of June.
According to the Group CEO of Databank, Kojo Addae Mensah, the move will make available a less expensive alternative source of raising revenue to finance real estate projects and 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.
By definition, a real estate investment trust is a company that owns, operates or finances income-producing real estate.
REITs provides 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.