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The report summarizes the answers to the questionnaire on real estate and finds that most jurisdictions make no principal difference between real estate funds and “normal” CIS so that they are basically treated the same, even if in most cases additional rules apply to real estate funds.
The range of regulatory cultures is reflected in the different portfolio diversification requirements. Where some jurisdictions allow a single property as the only asset in the portfolio, others ask for a minimum of five properties.
Regarding permitted borrowing, the answers vary from not regulated to different maximum percentages of the net asset value (NAV).
All jurisdictions require real estate funds to disclose their features in a prospectus and report about the past financial period at least once a year. A few jurisdictions rely on the general disclosure principles that apply to all CIS including those investing in real estate. Most jurisdictions however address specific elements of real estate investments that should be disclosed in detail in the prospectus and/or annual report.
In most jurisdictions a certain level of experience in the real estate industry –in addition to general management skills and financial knowledge- is required for the real estate fund management.