HFC Real Estate Investment Trust (HFC REIT) is hopeful that the country’s crude oil production will enhance the growth prospects of the real estate sector, and in turn presents significant growth opportunities for its future investment.
“The outlook for the HFC Real Estate Investment performance for 2011 is positive and is expected to achieve substantial growth in value and high yield for the year,” said Mr. Peter Larbi-Yeboa, General Manager of HFC Investment Services Limited, a subsidiary of HFC Bank (Ghana) Limited and managers of the Trust.
Mr. Larbi-Yeboa making a presentation at its Annual General Meeting in Accra disclosed that the HFC REIT recorded GH¢4,389,548 representing increase in net assets in 2010, as against GH¢3,312,946 in 2009.
“The value of funds increased from GH¢5.66 million to GH¢9.57 million, an increase of 70 per cent over the period under review.
“During the year under review, the fund fully completed and sold 16 units of two bedroom houses in Community 25’’ at Tema, which influenced the performance of the Fund to return a yield of 16 per cent during the year.” Mr. Larbi-Yeboa stated.
HFC Unit Trust also declared a net profit of GH¢2,791,687 for 2010, as against GH¢1,825,309 in 2009. The Fund size also increased from GH¢21.52 million in 2009 to GH¢26.93 million in 2010, representing a growth of 25.15 per cent.
He attributed the good performance to the significant reduction in market rates, additional investments and attraction of new clients who continued to express confident in the premier collective invest scheme.
“In addition, our prudent investment strategy also paid off due to the active realignment of the HFC Unit Trust Portfolio to obtain better returns on our investments. These developments all together contributed significantly to the growth of the fund value in 2010,’’ he said.
Mr Larbi-Yeboa said the period under review experienced a significant decline in the rates obtained on money market instruments due to declining inflation and reduced borrowing by government from the public.
That, he said, was necessary to reduce general borrowing rates to boost economic activity, and that had significantly influenced the fund, which was primarily a money market fund.
Mr Larbi-Yeboa explained that the Fund Manager had engaged an active rebalancing and realigning strategy of the portfolio to achieve good returns on the funds, and 2011 holds a lot of good prospects for the Ghanaian economy with the emerging oil and gas industry spurring growth in other sectors of the economy.
He pledged their commitment to continue diversifying the investments by increasing penetration in attractive investment alternatives.
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