Indirect Property Investment

Definition: Indirect property investment

= Investor establishes a legal entity for the purpose of acquiring one or more properties or acquires participating interests in an existing legal entity which may own one or more properties (also known as a share deal).

Indirect property investment is also defined as the acquisition of participating interests through the main stock exchange or during before hours-trading or Over the Counter (OTC), where the investor is only interested in property shares or indirectly interested in so-called “listed real estate”.


A precise distinction must be made here between:

  • (active) property investors that choose indirect property investment for structural or other other reasons, but make decisions or joint decisions on the acquisition, holding and management of the property investment
  • (passive) property investors such as public shareholders, institutional investors that do not have any operational involvement in the investment

Participating legal entities

The legal entities

  • Property company limited by shares
  • Property OEIC
  • Property CEIC
  • Limited partnership established for collective investment schemes
  • Property investment trust
  • Housing association

There is no independent legal entity for property funds that are in the form of a contractual investment fund (acquisition of property on behalf of the fund management).


Indirect property investments focus on the following transactions or acts:

  • Acquisition of participations
  • Safeguarding proprietary interests
  • Safeguarding the right to participate in administration, the right to obtain information and the right of verification

Print / Share: