German real estate funds are liquidating
If so, what are the factors and criteria that determine whether a fund is required to be registered? Under the German Investment Code, any fund that is intended to be marketed to investors in Germany must be notified to the German supervisory authority (Federal Financial Supervisory Authority, Bundesanstalt für Finanzdienstleistungsaufsicht or “Ba Fin” (please visit https:// more information)).
Since the Alternative Investment Fund Managers Directive (“AIFMD”) was transposed into German law in 2013, Germany no longer provides for a private placement regime; therefore, a distinction between public funds or private funds does not apply.
The notification letter must include, for example, evidence of the AIFM’s licence and compliance with the AIFMD, a description of the fund, the custodian, the German paying agent and the German representative, the fund documents, a business and a marketing plan, the most recent audited annual report and the semi-annual report, the prospectus and the key investor information document.
Documents in a foreign language must be accompanied by a German translation.
As with the notification procedure for retail marketing, the AIFM must submit a notification letter to the Ba Fin which includes the required information and accompanying documents.
However, the documents can be provided either in English or German.
In certain cases, such a Ba Fin order triggers a one-year lockout period.
If such an order is violated, the Ba Fin may impose a fine of up to EUR 5 million, or, in case of legal persons or associations, an amount equalling 10 per cent of the annual total turnover, which may exceed EUR 5 million.
Institutional private equity real estate (i PERE) can be described as high-quality commercial properties that are usually congregated in large investment portfolios managed professionally on behalf of third-party owners or beneficiaries.
1.2 What does the fund registration process involve, e.g., what documents are required to be filed?