Real Estate industry issues

Offshore funds
Fund Structures
Corporate Governance in Cross-Border Funds
Going Concern
The time is ripe for cross-border real estate transactions

Offshore funds

A change in the offshore fund rules means that, without taking action now, investors in offshore funds could be taxed on sales of their units as income rather than more favourably as capital gains.

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The new offshore funds rules

Fund Structures

Finding the right fund structure that takes advantage of opportunities as they arise and that will appeal to your investors is key. Our dedicated team of experts can help.

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Maximising your returns with the right fund structure

Corporate Governance in Cross-Border Funds

The collective impact of the tightened conditions in credit markets, government budget deficits and tax decisions (such as that of the first-tier tribunal Laerstate BV v HMRC) has prompted real estate funds to re-examine the stability and durability of their investment structures.

Cross-border real estate platforms for real estate investment have varying degrees of complexity. However, at their core they may deploy a ‘master’ holding company (or other entity) together with a number of underlying asset owning entities. In addition, the investment structure could also include financing and ‘feeder’ entities whose aim will be to optimise cash flows and assist in maximising investor returns.

Related link:
Corporate governance in cross-border real estate fund structures

Going Concern

The December 2008 year end led to many directors if investment property companies having previously unchartered discussions with their auditors. Phrases such as “going concern” and “emphasis of matter” became common place. Auditors were asking questions and requesting information about an entity’s ability to continue as a going concern at a level not seen in many years.

Related link:
Going concern: One year on - how to prepare for the auditors

The time is ripe for cross-border real estate transactions

As European markets slowly begin to emerge from the economic downturn, investors looking for long-term returns and yields could capitalise on cross-border investment opportunities.

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