FG announces full subscription of N250bn real estate investment fund
The Ministry of Finance Incorporated (MOFI) has announced that it has successfully closed its N250bn Real Estate Investment Fund (MREIF) pilot fundraising, attracting strong private sector participation under a N100 billion issuance tranche. In a statement by Sani Yakubu, Executive Director (Coordinator), MRIEF, on Thursday, it stated that MREIF has established itself as a highly […]
The Ministry of Finance Incorporated (MOFI) has announced that it has successfully closed its N250bn Real Estate Investment Fund (MREIF) pilot fundraising, attracting strong private sector participation under a N100 billion issuance tranche.
In a statement by Sani Yakubu, Executive Director (Coordinator), MRIEF, on Thursday, it stated that MREIF has established itself as a highly credible, market-driven investment platform to address Nigeria’s housing finance gap.
“The N100 billion Series 2 issuance was fully subscribed, with strong demand across a broad base of institutional investors, thereby depicting high investor confidence in the fund’s structure and long-term potential
“MOFl’s sole investment in the N150 billion Series 1 offer, private sector participation in Series 2 was resounding, positioning MREIF as a leading platform for mobilising capital into Nigeria’s real estate sector.
”The fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, lowcost mortgage financing at scale. The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” the statement said.
Minister of Finance and Coordinating Minister of the Economy while commenting said, “The full subscription of Series 2 offer demonstrates the pent-up demand for a structured, long-term housing finance solution, and affirms the private sector’s confidence in MREIF as a sustainable investment vehicle.”
Also speaking, Dr Armstrong Takang, managing director of MOFI, noted that “MREIF is designed to address both housing supply and demand constraints, offering affordable mortgage financing with up to 20-year repayment tenors at interest rates as low as 12%, significantly below commercial rates.
The N250bn is part of the N1 trillion designed to boost home ownership among Nigerians will provide low-cost mortgage options, particularly for pension account holders, enabling a broader segment of the population to own homes.
The N1 trillion fund which kicks off with an initial capital of N250bn is a 20-year-long mortgage with 12 per cent interest rate.