1. Shares / Shares in funds
- General Remarks
- Dependence on the professionalism of the fund management
- Dependence on the protection of minority holdings and its effectiveness
- Complete transparency
- of mutlisectional structures, profit transfers possible
- Clarification of the structures and procedures is necessary
- For property companies limited by shares
- Risks inherent in company purpose (no restrictions on holding and trading in real estate, e.g. additional purpose as a general undertaking or total solution provider and as a property developer [e.g. Allreal AG]
- No investment rules (in contrast to the mutual property fund, property OEICs and property CEICs)
- Voting shares for promoter as reason for not participating in the vehicle
- Group-related subordination and resultant risks
- Clarify group structure
- For property funds
- Cost intensity (marketing costs [portfolio management commission [also retrocessions], subject to marketing outlay], fund management fees, depository bank, real estate management and so on)
- Liquidity issues (insolvency of unsellable real estate)
- Shares are only taken back at the end of the financial year, every 12 months (exceptions are possible)
- Closure of fund / compulsory liquidation
2. Companies
- For property companies limited by shares
- Assumption of corporate risks (additional risk components in relation to the asset deal)
- Financial nature
- Accounting
- Balance sheet related
- Company evaluation
- Unknown obligations
- Comprehensive due diligence is essential for companies, shares and real estate
- Tax risks
- Lack of tax transparency
- Deferred taxes, in the company and with regard to real estate
- Double taxation
- Assumption of corporate risks (additional risk components in relation to the asset deal)
- For property funds
- No impact on strategy
- Limited external funding