UPDATE 1-Naeem Holding starts $56 mln private placement for real estate fund

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CAIRO, April 5 (Reuters) - Egypt’s Naeem Holding on Wednesday started a private placement for a real estate fund worth 1 billion Egyptian pounds ($56 million), the company’s chief executive officer Yousef Al Far said at a news conference.

The placement will take place over one month and will be followed by an initial public offering for the fund before the Muslim holy month of Ramadan, due to start at the end of May.

Al Far said the fund’s duration was three years and it was expected to make a profit of at least 26 percent a year.

The minimum investment for the private placement is 10 million pounds and for the public offering 50,000 pounds.

The firm also plans to launch another real estate fund before the end of the year, Al Far said.

$1 = 17.9500 Egyptian pounds Reporting by Ehab Farouk; Writing by Asma Alsharif; Editing by Jane Merriman and Mark Potter