Financial Asset Management receives the green light from the regulator to launch the first 2 OPCIs in the Cemac zone
In a momentous development within the Central African financial market, Financia Asset Management has gained regulatory approval to launch the first two Real Estate Collective Investment Schemes (OPCI) in the CEMAC zone, marking a significant milestone for the region’s investment landscape and presenting a new avenue for commercial real estate investment.
The OPCI CEMAC-IMMO, structured as an investment fund, is strategically positioned to encompass commercial real estate investments within the CEMAC zone, which includes Cameroon, Congo, Gabon, Equatorial Guinea, the Central African Republic, and Chad. This initiative is expected to attract qualified investors from within the CEMAC region and beyond, demonstrating a growing interest in diversifying investment portfolios in Central Africa.
The introduction of these OPCIs aligns with the broader economic strategy of the CEMAC zone, focusing on enhancing its international recognition and attracting foreign investment. The region offers a unique investment proposition with high bond yields, a fixed exchange rate against the euro, and a distinct asset class that may appeal to international asset managers seeking attractive risk/return profiles and market decorrelation.
The launch of the OPCIs by Financia Asset Management is poised to capitalize on the burgeoning economic environment in the CEMAC zone, which is forecasted to experience growth predominantly driven by non-oil sectors. The region’s diversification efforts, particularly in agriculture and extraction industries, are expected to contribute to this growth.
With assets under management totalling €370 million at the end of 2021, HARVEST ASSET MANAGEMENT stands as a leader in the CEMAC zone’s asset management sector. The introduction of OPCIs by Financial Asset Management is anticipated to further enhance the financial market’s infrastructure, providing states with alternative means of financing their medium- and long-term investment needs.
This development signifies a significant stride in the financial market of the CEMAC zone and has the potential to shape the future of investment in Central Africa. It underscores the strategic importance of the region’s financial market and its capacity to evolve and adapt to the dynamic global investment landscape.
Financial Asset Management (FAM), the pioneering real estate asset management company of CEMAC, has received the green light from Cosumaf to launch its first Collective Investment Organizations in Real Estate Securities (OPCI). This historic approval for “OPCI CEMAC IMMO” and “OPCI PIONEER” establishes these two collective investment vehicles as the first of their kind to be approved in the Cemac zone. This achievement reflects a masterstroke for Serge Yanic Nana, the leader of Financial Capital, and Willy Delort Heubo, the former DGA of the brokerage firm now at the helm of FAM. With nearly 20 years of experience in the African market, the Cameroonian financier is targeting premium quality real estate primarily in major cities in Central Africa (Douala, Libreville, Malabo, Yaoundé, Brazzaville, N’Djamena, etc.) for his inaugural OPCIs.
“In terms of asset segment, we will focus on offices, shopping centres, and logistics infrastructure (…) The objective is naturally to generate regular income through rental while benefiting from the long-term valuation of the assets,” stated the manager contacted by EcoMatin. Additionally, “OPCI CEMAC IMMO” and “OPCI PIONEER” have the auditor Fortis Mazars; Orabank Gabon is the custodian, while Ferll-Rolland Hynda and Fulbert Ibara serve as the real estate appraisers.
“OPCI CEMAC IMMO” and “OPCI PIONEER” are primarily intended for qualified investors and institutional legal entities established in CEMAC. The nominal value of a share is set at 1 million CFA francs for a minimum acquisition of 100 shares, requiring a minimum investment of 100 million CFA francs. Consequently, 70% of the funds collected by the manager will be invested in real estate assets, 20% in financial assets (debt securities, equity securities), and the remaining 10% will be held in cash.
Furthermore, there is substantial interest among the targets to acquire shares in one of these funds. FAM explains, for example, that the returns on real estate assets significantly surpass those of traditional investments. Furthermore, they enable institutional investors to improve compliance with asset allocation criteria while benefiting from much greater liquidity compared to direct real estate investment. For banks, investing in OPCIs could enhance certain regulatory ratios. The appeal of OPCIs extends beyond financial considerations, meeting a genuine real estate need for companies in a context where Central African cities are rapidly developing.
Looking ahead, the manager intends to develop offers for small shareholders, emphasizing the essence of the financial market in involving the general public. The plan is to democratize OPCIs and expand the range of assets, as well as geographical diversification towards new cities and metropolises with high potential, with the targeted completion of a general public offer in 2025.
OPCIs are new financial instruments in the Cemac region, introduced into the regulatory framework in 2022 alongside securitization organizations, capital investment, and professional long-term investment organizations. According to Article 430 of the Cosumaf general regulations, OPCIs primarily focus on the construction or acquisition of buildings exclusively for rental purposes, performing all operations necessary for the operation, use, or resale of said buildings, and carrying out various work, including construction, renovation, or rehabilitation of buildings for rental purposes. The proceeds from the rental are distributed to investors in the form of dividends.
It will be critical to analyze the reception of this new product by the CEMAC public. Until now, collective investment offers in the region have mainly consisted of UCITS (Undertakings for Collective Investment in Transferable Securities), with managers making investments in non-tangible assets such as bonds and shares. The advantage of UCITS lies in the visibility of the asset, fostering investor confidence. “We believe that UCITS is a good compromise for investors in our sub-region; the underlying assets are tangible and visible, offering improved support,” stated Willy Heubo.
