In the closed real estate investor invests in real estate are managed mostly as a limited liability limited partnership (GmbH & Co. KG) designed. As a rule, These are commercial properties, such as office or retail logistics as well as residential properties in Germany and abroad. The investor is thus co-owners, entrepreneurs, therefore, with all the risks but also all the opportunities of the market. The properties are presented in a prospectus, which allows investors, as opposed to the open real estate funds, a transparent investment decision. For achievement of the planned investment of participation, for example, the purchase prices of the homes, the placement period is over, it means no further funds shall be solicited and accepted no other investors. The investment is fully or placed with. When investing in foreign real estate funds on a foreign legal forms can also be used.
Preferably, here are USA, Canada, UK, Netherlands, Austria, France, Czech Republic and Australia. The investor becomes a partner in the limited partnership that is a limited partner, his risk is limited to the deposit paid. The investor, however, has no right to return the shares and payout. This is promoted within the Company by a shareholder resolution. Meanwhile, investors can sell your shares on the secondary market to other investors or underwriters or during the scheduled period again.
But there is no guarantee. The price depends on supply and demand. In closed foreign real estate investor will generally benefited from various tax incentives by the so-called double taxation agreements (DTAs), which allow the German investors a favorable tax investment in the country. Closed-end funds are not regulated by law, however, it is since the first July 2005 by the BFin an examination of the prospectuses required. There are a number of banking firms (providers), in the various sectors (real estate, ships, etc.) are active are. In recent years, in addition to greater regulation of the market, concentration of revenues to fund initiators and financially sound companies with a banking background is observed. Parallel to this development, the law, the conditions and guarantees for such partnerships has always clarified and expanded. Essential part of the fund’s prospectus (prospectus) is. If the minimum requirements for the content and the creation of such a prospectus is not met, is it contrary to the corporate structure of limited liability, the personal liability of the initiators. Roughly, the legal consequence that the founders are liable with their private assets for damage caused. These changes were made necessary after more investors have been harmed by closed real estate funds. Often such structures were used for loss allocation societies. This was the main interest in it, through the personal tax burden of the loss allocation reduce investors. A loss is achieved either by credit or high interest investment depreciation. The yield is therefore mainly in the saving of tax. This, in turn, the system was only relevant for top earners. The legislature has closed this loophole, however, so that the form of investment to be seen primarily as a profit-oriented. Each year, the Germans invested several billion euros in closed real estate funds. This makes it the most popular area of the closed holdings. These figures demonstrate the enormous economic importance of this form of investment and the increasing acceptance, especially from institutions and private investors.