The CMVM has given the go-ahead for Fomento – Fundos de Investimento Imobiliário, SGOIC, S.A. to be classified as a large-scale management company.
Abel Mascarenhas, President of the Executive Board of Fomento SGOIC, commented in first hand this new step in the 10th edition of the Portugal Real Estate Summit, an event organized by Iberian Property which brought together more than 400 property investment professionals from around 20 nationalities, a conference in which the Portuguese Minister of Housing & Infrastructure was also a featured keynote speaker.
Fomento is a management company for collective investment schemes, part of the Banco Português de Fomento group, focused on mobilising long-term investment and professional asset management, channelling capital into investments that have an impact on the competitiveness, modernisation and resilience of the Portuguese economy. It has €440 million in assets under management, and this decision now allows it to “operate above the €500 million threshold for assets under management, and strengthens its capacity to mobilise and manage capital in the service of the Portuguese economy’s development”, according to a statement from Fomento SGOIC. It will also be able to develop larger-scale investment vehicles, undertake more complex operations and respond to “opportunities of greater economic significance”.
Abel Mascarenhas comments that “this recognition marks a new chapter for Fomento. We now have a platform ready to operate on a larger scale and with greater ambition, whilst maintaining high standards of governance and risk management. We want to mobilise long-term capital and channel it towards investment, competitiveness and the growth of Portuguese companies”.
It also represents a further step in Fomento’s institutional maturity, confirming “the suitability of its technical, operational and organisational capacity to meet the increased demands associated with its new scale”. The growth strategy, based on the judicious increase in assets under management, the strengthening of the capacity to structure transactions and the development of new investment vehicles and solutions, “will continue to be pursued with a focus on creating sustainable value, protecting investors and ensuring the economic relevance of investments”.
The official press release issued also states that “Fomento accepts the increased responsibilities arising from this framework with a commitment to upholding high standards of governance, transparency, internal control and risk management, whilst strengthening its role in mobilising capital and professionally managing investments geared towards the country’s economic development”.
