The Agency for housing mortgage insurance (AHML) plans to apply to the government to begin investing in rental housing this year, said the General Director of state company Alexander Plutnik, speaking at the session “Collective investment in rental housing: to trust or not to trust?” St. Petersburg international economic forum. According to him, this investment could reach 30 billion rubles to the end of the year. All these projects are in major cities, mainly Moscow, where people prefer to live in rental housing, he said.
“We have this tool working, we understand how to generate these Funds and how to offer and sell this product to people,” Plutnik said, adding that he counted on the support of the Bank of Russia in the management and implementation of units of the Fund formed at the expense of the property directly to non-qualified investors.
Plutnik believes that now in the housing market and real estate market opportunities. “We see mortgage rates as people are buying apartments as citizens show interest in the sector of housing, the developers are also going in this sector,” said Plutnik.
Earlier, Vedomosti wrote that the seller is going to create “an innovative market rental housing”, which will allow to solve housing problems of citizens who are not able to get my own apartment.
AHML is going to develop a mechanism for involvement in these projects foreign investors. To do this, the seller will organize a management company that will attract investors and using the partner Bank will establish a trust Fund for the redemption of housing under construction from developers. In addition, will select the project with the prospects of sales of rental housing, will provide control and support of construction, will guarantee construction risks. The seller will act as the coordinator of the parties, as well as a co-investor.
Another mechanism would be to issue mortgage-backed securities are obligations of the lessor under the collateral built rental housing. It is assumed that the Bank that issued the credit the legal entity on the construction of housing for the recruitment, will have the opportunity to refinance it, having sold the mortgage to the seller. The volume of repurchase will be determined by the size of government funding (subsidy or concessional funding) provided by the seller for this purpose, as well as demand from investors for securities.