law 410 of 23 November 2001 has reintroduced into Italian law the notion of real estate fund understood as a fund specialized in investment exclusive or prevalent in real estate, real and immovable rights and shareholdings in real estate companies. The fund uses the savings collected to create an asset made up of real estate.
In Italy there are only closed-end real estate real estate funds and funds of funds. Recently the European Union is moving in this direction in order to create a common market for funds and regulate in a stringent manner open-ended real estate funds, present in a few countries of the Union.
The assets of a closed-end real estate fund must be invested in an amount of no less than two thirds of the overall value of the fund, unless the assets are invested, in an amount of not less than 20% of its value, in financial instruments represented from securitization transactions.
They can take out loans following particular limits and the maximum duration of the collection phase is 30 years plus a 3-year extension for completing the disinvestment of the investments. They are not taxed on the profits but on the management carried out.
The performance of the fund depends on the performance of the real estate market; the net value must be calculated as annual average of the values resulting from the periodic statements drawn up also taking into account the period in which the fund had no value due to the start-up or closure phase.
