Real estate equity fund, investors association to launch soon
ACCOUNTABILITY: The fund and association are set to bring investors’ knowledge and investment options to the next level
The country’s first real estate private equity fund will be launched within the next two months with a target fund of RM250 million.
“We intend to raise RM250 million from the public and institutions to acquire strategic commercial assets and plantation landbanks, initially in Malaysia and Singapore, and later in Southeast Asia,” said Fadhli Zil Ikram, Head of JupiterIslamic, Jupiter Securities Sdn Bhd.
Structured within the framework of a limited liability partnership, the fund which is very much like a private real estate investment trust (REIT) will be governed by Labuan Offshore Financial Services Authority (LOFSA).
“Accountability is much higher in a limited liability partnership. If anything happens, you can go for the partners directly,” Fadhli added.
He was speaking at a recent press conference on Review and Proposals on the Secondary Market where Gavin Tee, Founding President of SwhengTee Real Estate Investment Club made a recommendation to the government to free properties above RM500K from the LVR (loan to value ratio) cap of 70 per cent for the third home onwards. “The LVR cap should be retained for properties below RM500K so as to prevent speculation below this price range. But for properties above RM500K, banks should be free to decide on the loan margin,” Tee said.
He added that this is one of the areas that the soon-to-be formed National Investment Association (NIA) could spearhead in the years ahead. The NIA, a non-profit organisation, is set up to protect and safeguard investors’ interests,
to provide a platform to exchange ideas and promote a healthy investment culture in Malaysia.
“You need to know a lot before you buy secondary property,” said Tee, adding that in the US, there is a lot of shareholders’ activism which helps in protecting investors from investment scams.
To be finalised by the end of this month, the association will not only give advice on real estate but will also advise on the share and commodity markets. Members of the association will have priority buying into the private
real estate fund when it is launched.
Also present were the other Pro-Tem Committee members of the investors association such as Datuk Saroni bin Judi (Director, DMDI Finance House Bhd), Michael Tee (Director, NextVIEW Pte Ltd), Benny Lee (Chief Market Strategist,
NextVIEW Pte Ltd) and Ahyat Ishak (CIO, Prawida Group). By Khairul Khalid