By Peter Egwuatu & Providence Obuh
In a bid to efficiently manage its Fund and to protect the interest of unit holders, Union Homes Real Estate Investment Trust Fund( REIT ) has established an investment committee members to drive the process of its operations.
Managing Director/CEO, Union Homes Savings and Loans Plc, Mr. Samson Olatunbosu disclosed this weekend during the listing of the companyâ€™sÂ 250,019,781 units of 50 Naira each at N51.50 per share at the Lagos floor of the Nigerian Stock Exchange (NSE). The Union Homes REIT, was introduced to the market by way of listing by introduction
According to him, â€œ the investment committee is made up of 5 members namely: 2 from UBA trustees Ltd., 2 from the Funds Managers, i.e Union Homes Savings and Loans Plc and 1 independent member who is not related to either the Fund Manager or trustees. The committee is to among others reviews and approves process and procedures that guide investment activities and approves eligible properties/mortgages for acquisition in line with the Funds investment policy and disposable/sale of investment.â€
He commended the stockbrokers, NSE and the Securities and Exchange Commission (SEC) for making the REITS, a newÂ window of investment opportunity on the capital market, noting that it was the first of its kind in Africa in terms of size and focus.
According to Olatunbosu, â€œ The REIT is aimed at accelerating home ownership at all levels, while creating wealth for its investors. It is an investment machinery that packages real estate investment into tradeable securities for investors.Â Union Homes REIT can purchase, manage and sell real estate assets and also purchase mortgage assets, thereby creating a professionally managed portfolio of real estate properties.â€
He further stressed that the new product aims to deliver capital appreciation through investment in a strategic mix of real estate properties that command superior quality rents, excellent mortgage assets and money market instruments.
â€œ A potentially high level income and low levels of volatility to the attractive returns on real estate investments makes investing in Union Homes REIT very endearing to any discerning investorâ€ he added.
To this end, the Union Homes boss called on the investing public to take advantage of the juicy investment Funds as it intend to distribute 90 per cent of its net income as at November 30, 2009 in line with the prospectus. â€œ This translates to N4.01k despite the present harsh operating environment. We plan to maintain the tempo in the current yearâ€ he added.