Definition
- Formation of a legal entity by the investor for acquiring, holding and disposing of real estate
- Private acquisition of participation rights in an existing property company that owns one or more properties (= share deal)
- Stock market or pre-market acquisition of participation rights in a property company, possibly over the counter (OTC)
Specifics
A specific distinction must first of all be made here between:
- (active) property investors that use indirect property investment instruments for reasons of structure or fungibility, but make decisions or joint decisions on acquiring, holding and managing the property investment
- (passive) property investors such as public shareholders, institutional investors (also called qualified investors), that do not have any operational involvement in the investment
Legal entities in indirect property investment
The investment instruments are:
- Property company limited by shares
- Property OEIC
- Property CEIC
- Limited partnership for collective investment schemes
- Property investment trust
- Housing association
The standard form of property fund is a contractual investment fund; the contractual investment structure obviates the need for a legal entity (property is acquired on behalf of the fund management; cf. http://www.vertragliche-anlagefonds.ch/exkurs-immobilienfonds/anlagevorschriften).
Membership
Indirect property investment at investor level focuses on the following aspects of choice, decision, execution and monitoring:
- Acquisition of participations
- Safeguarding proprietary interests
- Safeguarding the right to participate in the administration, the right to information and the right of verification
Further information
Indirect Property Investment | indirect-property.ch
