Real estate fund

A real estate fund is a special asset form, being managed by a real estate investment fund management company and with the assets being held at a separate custodian bank. The assets of the fund of a real estate fund are owned by the real estate fund management company, which holds and manages the real estate in trust for the unit holders.

The legal basis consists on the one hand of the Real Estate Investment Fund Act (ImmoInvFG) and on the other hand of the Alternative Investment Fund Managers Act (AIFMG), since real estate and special real estate investment funds are considered to be alternative investment funds (AIFs) and therefore real estate investment fund management companies are also required to hold licences as Alternative Investment Fund Managers (AIFMs) (→ see also AIF and AIFM).