The Securities and Exchange Organization (SEO) authorized the country’s first land and structure fund (LSF) called “Nasim” to enter stock market, Securities and Exchange News Agency (SENA) reported on Monday.
The LSFs are a form of Unit Investment Trust— a type of mutual fund. Tehran Stock Exchange (TSE) has recently made new changes to its admission procedures for newly established funds to facilitate the process of entering capital markets for LSF and project funds.
The fund has been allowed to start operations after collecting 150 billion rials ($5.6 million) during the run-up subscription period.
The Housing Investment Company has been appointed as the main agent and Tehran Capital Market Development Company has been assigned as the manager of the fund. The fund is set for a residential plan in district 22 (Chitgar Lake area) of Tehran, with a total of 13 square kilometers and will take between 24-30 months.
About ten days ago, Avishan, Iran’s second land and structure fund went to an initial public offering (IPO), and its investment units became tradable in the secondary market.
Experts and officials believe the establishment of such funds will help increase construction quality.
The TSE had also earlier favored LSFs entrance to the exchange market, and had called for more of such funds.
