The MOFI Real Estate Investment Fund has successfully raised N100bn through its fully subscribed Series 2 issuance, marking a significant milestone in securing private sector capital for Nigeria’s housing sector.
Part of the fund’s N250bn pilot fundraising effort, the Series 2 issuance aims to address Nigeria’s housing finance gap. The announcement, made by Sani Yakubu, Executive Director of MREIF, on Thursday, highlighted the strong investor participation, especially from institutional investors, reflecting confidence in the fund’s structure and future potential.
With an Aaa rating from Agusto & Co. and an AA rating from Global Credit Rating, MREIF has positioned itself as a reliable and market-driven investment vehicle. Unlike the Series 1 issuance, which was backed solely by MOFI, Series 2 attracted private sector investors, reinforcing MREIF’s role in mobilizing long-term capital for affordable housing.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, praised the full subscription of the Series 2 offer, noting that it demonstrated strong demand for structured housing finance solutions and the private sector’s readiness to invest in long-term, affordable homeownership opportunities.
MREIF aims to overcome key housing finance challenges by offering affordable mortgages with terms of up to 20 years and interest rates as low as 12%. It also provides off-take guarantees for developers, minimizing risk and unlocking capital for large-scale housing projects.
Dr. Armstrong Takang, the Managing Director and CEO of MOFI, emphasized that the fully subscribed issuance signals strong investor confidence in MREIF as a platform for large-scale housing finance. With the fund’s N1tn multi-tranche program in motion, the next phase will focus on increasing private sector participation and accelerating housing development.
MREIF’s goal is to play a pivotal role in addressing Nigeria’s housing deficit by providing structured capital for affordable housing initiatives, integrating with commercial banks, mortgage providers, developers, and financial institutions. The fund is a Securities and Exchange Commission-approved investment vehicle designed to expand homeownership and strengthen Nigeria’s housing finance sector.
