AREC Mortgage Corporation NBFI (Mongolia)
AREC Mortgage Corporation NBFI (AMC) is a regulated "non-bank financial institution" in Mongolia. It provides working capital loans to small and medium sized enterprises in Ulaanbaatar.
The banking system in Mongolia is still relatively underdeveloped. AMC provides loans to SMEs at lower rates than would otherwise be available to them. The majority of loans are secured by property mortgage.
AREC Finance (Australia)
AREC Finance provides finance to franchisees of Supercheap Storage throughout Australia www.supercheapstorage.com.au
A range of loan and leasing products are available to franchisees.
The Mongolia Real Estate Growth Fund (Mongolia)
MREGF is a closed-end fund that undertakes real estate related investments in Ulaanbaatar. The fund is managed by AREC.
MREGF invests in real estate in prime downtown locations. MREGF primarily invests in downtown retail property such as shops and restaurants. MREGF also has several loan investments secured by completed property.
The portfolio's main drivers of value are GDP growth, ongoing retail upgrading trends and low levels of supply of property in the downtown area.
MREGF closed for subscriptions in December 2012.
Mongolia's economy has among the strongest growth rates globally however housing infrastructure is still very undeveloped. There is a need to double the housing stock in Ulaanbaatar, this demand comes from two principal sources: 1) Of Ulaanbaatar's population of 1.3 mn, 600k people live in the ger districts and are not connected to the heating and water / sewerage systems of the city. There is a huge push by the city government to redevelop these areas into modern housing. 2) There is strong demand for upgrading of living space. Carrying the title of "least densly populated country in the world", there is no shortage of land in Mongolia. However despite this, living space in Ulaanbaatar is currently less than 10 sqm per person. With incomes rising and this basic need for larger living spaces, upgrading will be a significant source of demand for decades to come.