The tender for the real estate and securities sub-programmes – the first pillar of the government’s Baross Gábor Reindustrialization Program – was successfully completed on 31 March. The National Capital Holding (NTH), which is under the Ministry of Economy, saw significant oversubscription from both domestic real estate and securities funds. The original HUF 150 billion (EUR 401 million) capital programme to promote investment activity, green developments and stock market liquidity will be increased to HUF 169 billion (EUR 451 million) due to increased interest.
14 fund managements (9 real estate and 5 securities fund managements) successfully applied for the real estate and securities sub-programmes of the Baross Gábor Reindustrialization Program announced on 1 March. The funds, with total assets under management of HUF 1,490 billion (EUR 3.9 billion), will use the funds for the development, renovation or purchase of Hungarian real estate or for investments in the Hungarian securities market. The fund managements are launching new series in existing funds with state financing; after the capital increase, NTH’s participation may not exceed 30% of the net asset value of each fund.
The real estate and securities sub-programmes are open to domestic investment fund managements with significant experience, expertise and track record, who have managed assets averaging at least HUF 50 billion (EUR 133.6 million) in real estate funds or public securities in the last two years. Fund managements can receive up to HUF 5 billion (EUR 13.3 million) for securities funds and up to HUF 30 billion (EUR 80 million) for real estate funds in capital injections to be disbursed in May this year.
The Baross Gábor Reindustrialization Program consists of three pillars and is in line with the economic development objectives of providing adequate funding to economic agents in the current unfavourable interest rate environment and avoiding recession. The total amount of the capital programme is HUF 600 billion (EUR 1.6 billion). In addition to the real estate and securities pillars, the programme includes two other staggered pillars to recapitalise the best performing sovereign investment fund,s in the Hungarian market and to create new capital funds.