Market developments for real estate funds
Hardly any existing real estate funds can make good on their prognoses, and are forced to consolidate among themselves through their refinancing activities. At the same time, the overall costs of real estate funds are rising due to increasing regulation of the supervision of real estate funds.
Failure to meet the profitability targets / expectations gives real estate funds a poor image, resulting in a lack of interest among investors.
The present market only has room for real estate funds that are set up as opportunity funds (distressed asset funds) or as low-risk funds, focused on maximum transparency (including reporting), sustainable real estate (low energy costs; retention of value), low LTV ratios (low leveraged funds), and defensive real estate investments (such as real estate in AAA locations).
Mazars adds value
Mazars is specialised particularly in the optimal structuring of a real estate fund (fiscal investment institution, mutual fund, real estate CV (Special Partnership), or comparable foreign entity).
In this we take account not only of strategy, financing, supervisory rules, and legal aspects, but also of the tax burden at the setting up, during the management phase, and at the disposal by the fund.
In this respect we focus not only on the consequences for the real estate fund itself (purchase, sale, and management of the real estate), but also on those for the investors in the real estate fund (purchase, sale, and management of the participations).
Since the staff of Mazars have abundant experience of/with the financial-legal guidance of real estate funds, they are ready and able to give you optimal advice on subjects that include the following:
- optimal structuring of a new fund
- optimisation of the existing fund structure
- legal aspects of supervision
- preparing a prospectus
- purchase of real estate
- setting up of control and management
- compliance (tax returns, annual accounts, reengineering)
- alternative financing forms
- exit strategy
Other Mazars services
In addition to our specialist real estate knowledge, Mazars offers a broad range of services such as accountancy and tax services, and can help you with problems in areas such as strategy, valuation issues, liability, IT, subsidies, training, and personnel policy. Our short communication lines enable us to quickly bring you into contact with the right person. This means that we are able to provide you with concrete, up-to-date advice.