Grupo Invercasa has received authorization to create and manage funds in real estate and financial investment in the country and plans to raise $150 million over the next five years.
With the creation of the fund management company Invercasa the aim is to raise investment of $150 million in the first five years of operation, primarily through the model of real estate investment funds.
Estimates are of a market potential of $80 to $100 million for the development of real estate funds in the next two years.
The Invercasa Financial Group announced that it is negotiating with the Superintendency of Banks and Other Financial Institutions (Siboif) to open a real estate fund management company.
Statistics from Invercasa have recently indicated that in the last 18 months, since the firm entered the market of real estate investment, these funds represent 97% of all international transactions in Nicaragua, resulting in 70 domestic investors contributing 10 million dollars, with gains of 7.5%.
Initial expectations for the placement of shares in real estate funds worth $2 million was far surpassed, with a total of $9 million in the first year.
Laprensa.com.ni reports that "... the success of the FII is based on the fact that these pay a better percentage for the investment (from 6.5 to 8 percent a year), much more than is usually paid by the financial system on savings, but also offers fewer levels of risk for investors.
In the first five months of supply, real estate investment funds sold $3.4 million in shares with a minimum participation of $5000.
The attractive interest rates offered and "the existence of a secondary market that allows the recovery of the investment when required, have made this an attractive investment instrument", reported Laprensa.com.ni.
Eduardo Ortega, general manager of Invercasa Puesto de Bolsa, says, "As a new product in the country, it was predicted that about five million dollars would be placed. But with the pace we are seeing, we projected that investment could reach up to about 10 million dollars."