For inquiries
Egypt
Abdullah Salam, CEO of the "City of Egypt" company, listed on the Egyptian Stock Exchange, said that the company has launched a new phase of the partial ownership platform for real estate "SAFE Investments"; with the aim of expanding the investor base, and making real estate investment available to wider segments of society, starting from only 5 thousand pounds, in a move targeting what he described as "the democracy of real estate investment", according to "Arab" Business.
Salam explained that the global economy is witnessing an accelerated shift towards the models of the participatory economy, explaining that the idea of partial ownership of the property is based on enabling a large number of investors to own shares in a single real estate asset in a regulated and controlled digital way, noting that real estate investment was historically limited to groups with large capital, while the SAFE platform today allows any investor to enter the real estate market in limited amounts, by owning documented shares in real estate assets that generate periodic returns.
He pointed out that the platform operates under the regulatory umbrella of the Financial Supervisory Authority, to ensure the clarity of the legal structure, and the preservation of the rights of investors, stressing that the simplest forms of investment through the platform are the purchase of existing commercial real estate and leased to tenants with a financial solvency, and a known operational record.
The average annual rental return for non-residential properties ranges from 10% to 12%
He pointed out that the investor can review the property and its value through the application, and then buy shares starting from 5 thousand pounds, provided that he gets his share of the rental revenues according to his ownership percentage in the real estate asset, explaining that the average annual rental returns for non-residential real estate usually range between 10% and 12%, pointing out that the investor does not benefit only from the cash flows resulting from the rent, but also from the increase in the value of the real estate asset over time, and that the investor can reinvest the proceeds, withdraw them, or sell his entire share, or part of it at any time through the platform.
As for the difference between SAFE and REITs, Salam said that the new model is an extension and development of the idea of collective real estate investment, but it gives the investor an additional advantage in owning a common share directly in the property itself, adding that all operations are carried out digitally through the application, from investment and payment to the collection of returns and exits, which provides more flexibility and ease for the investor compared to traditional models, and that the application allows the investor to buy and sell and manage his investments entirely from home without complicated procedures.
With regard to competition with bank certificates and high-yield savings vessels in Egypt, Salam said that the comparison between the two tools differs in terms of investment nature, pointing out that bank certificates are savings tools aimed at preserving the value of funds and facing part of the effects of inflation, while investing through SAFE represents a real investment supported by real estate assets that usually rise in value with high inflation rates.
The new model is an extension of the idea of collective real estate investment and gives the investor an added advantage in owning a common share in the property itself
In the same context, he explained that the investor may receive a lower cash return than some savings vessels in terms of monthly flows, but in return he benefits from increasing the value of the real estate asset when selling in the future, which makes it a more effective hedging tool in the face of inflation in the long term.
On one of the most prominent challenges associated with real estate investment, which is the difficulty of liquidating assets, Salam pointed out that the platform has established an internal market for trading shares between investors, explaining that experience has shown that there is high activity in the buying and selling operations within the platform, and that the shares offered for sale are usually traded within a period not exceeding two weeks on average.
He added that the decrease in the nominal value of quotas compared to the purchase of a full property contributes to facilitating exits, and increasing liquidity within the market, and that SAFE revenues do not depend on speculation in assets, but mainly come from the fees of managing and operating real estate assets, and the fees of services associated with the platform, and that the growth of the size of assets and the number of investors will raise the contribution of the platform to the business of "Egypt City" during the coming period, with the continued expansion of new investment opportunities through the application.
For more Information contact: www.dxrprop.ae
Call/WhatsApp: +971501090635
Email: alnashra2013@gmail.com
– To write a special article about the name of your organization or company, you can write to the following email: