Set up of a real estate structure for a fund
The Issue
A client was looking to set up a new fund aiming
to invest into real estate property all over Europe.
The targeted investors are institutional investors
as well as private investors residing all over Europe.
The client's main investment targets included a tax
efficient fund which is very well known in the marketplace.
Our Approach
We started by conducting a feasibility study into
the regulatory and tax constraints for the investments
in the targeted real estate locations. This included
an analysis of the relevant double tax treaties between
Luxembourg and the real estate locations. Based on
this research we proposed several possible alternatives
to the client.
Our specialists worked very closely with the client
and their legal advisers to implement the agreed option,
involving project management.
The Outcome
At the end of the project, we had implemented an
investment structure for the fund that complied with
the legal and regulatory requirements in Luxembourg
and in the various investment locations.
The client had fulfilled all of its objectives, including:
- Achieving low running costs through the reduction
of administration, adviser and investment fund
manager charges
- Flexibility of the structure for new investment
opportunities
- Tax-optimized financing of the investments
- Optimized cash flow upon liquidation of the
fund
