Amendment to Regulation on Real Estate Investment Funds
July 17, 2024
An amendment has been published in the Official Gazette regarding the Regulation on Real Estate Investment Funds. The changes aim to enable real estate investment funds to contribute to residential development and streamline the fund application processes.
Key changes include:
- Allowing real estate investment funds to invest in projects where more than half of the gross floor area is allocated for residential use, termed as "project real estate investment funds."
- Establishing timelines for commencing construction on registered land parcels that meet specified criteria within three years.
- Allowing real estate investment funds to be issued under umbrella funds similar to securities investment funds.
- Simplifying the articles of association and issuance documents.
- Requiring the signing of a fund issuance agreement that includes minimum requirements specified in the Regulation before selling participation units to qualified investors.
These amendments aim to enhance the contribution of real estate investment funds to residential development and streamline administrative processes.
