Al-Waqa’ea Al-Masreya – No. 82 on 9th April 2014 The General Authority of Financial Supervision The Authority’s Board Decision No. 34 for 2014 Dated 12/3/2014 Regarding the investment governances of real estate investment portfolios
The Board Of Directors Of The General Authority Of Financial Supervision
Upon review of the Market Capital Law promulgated by the Law No. 95 for the year 1992 and its Executive Regulations and the decisions rendered in execution thereof; and
On the Law of Depository and Central Registry of Securities promulgated by the Law No. 93 for the year 2000 and its Executive Regulations; and
On the Law No. 10 for the year 2009 regarding regulating supervision over markets and non-banking financial tools; and
On the Presidential Decision No. 191 for the year 2009 on the governing rules of the Egyptian Stock Market and its financial affairs ; and
On the Presidential Decision No. 192 for the year 2009 for issuing the statutes of the General Authority of Financial Supervision; and
On the approval of the Board of Directors of the Authority, rendered on its meeting held on 12/3/2014;
( First Article )
The Real Estate Investment Portfolio shall be committed to ensure that the rate of revenues’-generating assets shall not be less than (70%) from the total assets of the portfolio.
The revenues’-generating assets shall mean the ones that generate regular revenue during the period of keeping it and not conditional to its sale until it generates revenue, and such revenues’-generating assets shall include the following:
First – the real estate assets that are owned or built or completed or developed (whether directly or indirectly) and which generated or are expected to generate returns, whether by renting or exploiting or managing, and whether these estates were for residential or touristic or commercial or storage or industrial or other purposes, of production or servicing activities.
Second – Financial assets connected with real estate activity which generate revenues, including the following:
1- Securitization bonds that are issued in return of a financial rights’ portfolio for financing real estate loans.
2- Bonds that are issued by real estate financing companies which are guaranteed by a real estate loans’ portfolio.
3- Securities that are listed in the Egyptian stock markets; provided that such are issued by a company having the majority of its assets are real estates or issued by companies working in activities related to real estate development.
4- Stocks of Egyptian companies that are not listed in the Egyptian Stock Market and has (80%) of its assets as real estate; provided that, at no times, the percentage of the portfolio’s ownership in the company’s capital shall not be less than two thirds of its capital.
5- Other real estate investment portfolios.
As the case may be, the notice for public offering or the information memorandum must include a determined minimum for the investment percentages for each of the above items.
The portfolios’ investment in funds should be on demand and the states’ bonds shall not exceed (30%) of the total assets of the portfolio.
In all cases, the percentage of real estate assets shall not exceed (including financial assets related to real estate activity) for a real estate investment company portfolio, (95%) of the total assets of the portfolio.
( Second Article )
The portfolio shall be adherent to limits and percentages, stated in the previous Article commencing on the fiscal year of establishing the portfolio, and the regular financial lists to follow must include whatever shows compliance of the portfolio.
( Third Article )
This decision shall be published in Al-Waqa’ea Al-Masreya, and on the website of the Authority and the Egyptian Stock Market, and shall be applicable on the next day of its publication on Al-Waqa’ea Al-Masreya.