Recently established Kazakhstan real estate fund selling 49 % of its shares

/REUTERS, Almaty, Tatyana Seroshtanova, June 10, 08/ - The first joint- stock investment real estate fund (AIFN) Velikaya Stena was established in Kazakhstan experiencing a phase of production recession. 49 % of shares of the fund are to be sold in the nearest future, the fund representatives informed. "We are offering to investors 49 % of existing shares... for a wide circle of investors on the market", - the chairman of the Board of Directors of AIFN Velikaya Stena Dilmurat Aznibakiyev told. Currently the main investor of the fund is the investment-developer company INNOVA, the funds assets are managed by the Investment Financial House RESMI. Both companies belong to RESMI Group, doing investment activities and uniting a number of companies, among which the accumulative pension fund Respublica and a number of 7'Ya supermarkets. "In fact in this project we... are planning to cover as much of the investor base as possible, including pension funds, insurance companies, unit funds, investment funds, including private investors", - the chairman of board of IFH RESMI Aydar Ospanov told, adding that a wide circle of investors will assist to diversify the investors' base. According to his words the fund will only invest in projects, which already operate and full of the renters, able to provide the money inflow for investors in form of the dividends. Currently shares of the fund (100,000) are passing through listing procedures on the Kazakhstan Stock Exchange. "Gradually we are widening a list of instruments, to make it possible to invest means of pension funds, banks and population. Currently, the fund is advancing through the listing procedure on the main floor of Kazakhstan Stock Exchange (KASE) at the highest category", - the Vice-president of KASE Andrey Tsalyuk, who participated in the conference, told. In his opinion, despite of some risks, the shares of the fund can be demanded by a certain category of market participants. "It is hard to determine the perspective now, but qualified investors will purchase the shares rapidly", - Tsalyuk told. The supposed price corridor, in which the sale of shares would be executed, is not announced yet. "After listing and negotiations with potential investors, we'll build the price", - Aznibakiyev told. "The price will be calculated before offering directly from the orders' book, which will be formed and usually it is not announced earlier", - Tsalyuk told. Currently in the assets of the fund there are three business-centers of "А- /В+" category, which are 100 % full with the renters. It is expected that the investors will receive 90 % of the renting payments, and 10 % will go to the reserve of the fund. "We consider that within next 18-24 months it will be possible to increase the size of assets up to KZT10-12 bn.", - Aznibakiyev told. In the perspective the fund, except office real estate objects, is planning the inclusion of trade, transport and hotel infrastructure objects into its portfolio. By the prognosis of the AIFN Velikaya Stena, within next 3-4 years the supply on the real estate market will be limited by the existing objects, demand for which yet is exceeding the supply. "We think that investments into this sector and this segment in the middle- term perspective - up to five years - will be well attractive and profitable for investors", - Aznibakiyev considers. Speaking about the crisis in $30 bn. construction sector of Kazakhstan, being deprived the access to credit resources due to global liquidity crisis, the representatives of the RESMI Group consider, that the market will be falling for 18-24 months and it is difficult to forecast the exact term of the "price bottom" to be reached by the market. "According to our observations, the cycle is 5 to 7 years. We have seen the active growth of the market for the last several years. Today we think that we are in the active phase of the assets cost reduction and this process may last for the next 18-24 months", - Aznibakiyev added. By his words the real estate market is likely to volatile and cycle than any other sector of the financial market, and as any economy is subjected to fluctuations. "We all know that we are in the stage of the active recession, assets cost reduction on the real estate market. We think, that now or within nearest months it will be the most proper time in order to purchase the real estate objects for securing the corresponding profitability to our potential investors", - Aznibakiyev considers. [2008-06-11]