EghtesadOnline: The Ministry of Roads and Urban Development plans to tap the existing capacity of Iran Mercantile Exchange to fund projects in the transportation and housing sector, an official with the ministry said.
“Over the past ten months we had meetings with the Securities and Exchange Organization to study stock market capacity in financing housing and transportation projects,” Amir Mahmoud Ghaffari was quoted as saying by the Road Ministry news portal.
According to Ghaffari, both sides agreed to set up a mechanism based on which the IME will help fund infrastructure projects in the two key sectors.
For this purpose the IME is working to launch a trading platform designed specifically for handling real state trade.
Additionally, the IME is setting up land and real estate funds that would help meet the financial needs of construction companies. Construction companies will able to offer housing units at IME.
“In coordination with the SEO, the funds will be offered on a big scale at the IME with the aim of building decent housing for people from all walks of life.”
He announced plans to build more than 1,000 housing units in the first phase of the initiative, adding that “now, grounds are prepared for financing at least 12 construction projects worth 12 trillion rials [$75 million]”.
New Town Development Company and the National Land and Housing Organization will prepare the groundwork to launch real estate funds and offer housing units at the IME.
The Road Ministry is also in the process of securing funds for the transportation sector by implementing 14 road and rail projects via the bourse.
Mohammadreza Poorebrahimi, a member of High Council of Securities and Exchange, said the IME is well equipped to handle trade in real estate.
The initiative is also expected to help construction companies participate in the government-sponsored housing development scheme, known as “National Housing Initiative”.
The government has said 400,000 units will be built over two years under the new plan.
New Towns Development Company will build 200,000, the Urban Development and Renovation Company 100,000, and the Housing Foundation of the Islamic Republic of Iran the remaining 100,000 residential units over three years. Nearly 20,000 of the homes will be built in new satellite cities.