The New Austrian Real Estate Investment Fund Act
July 27th, 2007 by Ines
In Austria a legal regime for investment funds regulated by the Investment Fund Act (Investmentfondsgesetz – “InvFG”) on the basis of the UCITS-Directive (85/611/EEC) has already been in existence for many years. However, the InvFG applies solely to funds investing in securities. The existing “real estate funds” are usually stock corporations, which invest in real estate. Such funds are not regulated, except where they are made as a public offer, where certain specific prospectus requirements exist and semi-annual reports need to be published. If the shares in such corporations are listed on an exchange (or illiquid), the ´de-investment´ is difficult for the shareholders.
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