Iran Fara Bourse launched Construction Fund on 30 August 2014. Target of this fund is to gather small and big savings to allocate for the specific construction projects, then selling the buildings and divide its benefits among investors. This is a new financial instrument in Iran capital market to finance housing projects. It should be mentioned that underwriting of this fund is done at Third Market but its secondary transactions is performed at New Financial Instruments Market. Some fortunate aspects of this financial instrument are separation between financing the project and project management, to guarantee well-timed financing, flexible financing adaptable to market condition and price changes, tax exemption, having legal and official identity, fixing buying power of investment units’ owners against increasing prices in building, possibility of buying or selling fund units online, to maintain liquidity by market-maker and possibility of raising units to underwrite through SEO’s agreement. Construction Fund is an entity which is created in demand of landowner after approval of IFB in order to finance housing projects through a non-bank way.
To finance construction for landowners who are not capable of building houses on their land is one of the main goals of launching this fund. To provide this opportunity for all investors to benefit from growth of Real Estate & Construction industry, tax benefits to encourage investors and so absorbing resources are some other goals to achieve.
Underwriting units of the first Construction Fund which is called “Nasim” commenced from 30 August in IFB. Each unit valued IRR 10,000 and 15 million from 29,600,000 units could be underwritten till 3 September 2014. Nasim Construction Fund was created to finance a project in Golsetan complex with 13,199 m2. Bank Maskan Investment Group, Arya Leasing and TTAA Co. are its founders which have provided IRR 141 billion non-cash capital and IRR 5 billion cash capital. Also, Bank Maskan Brokerage Company is market-maker of this fund.