PM allows real estate capital for investment fund

Wednesday, Jul 01, 2015 10:26

The PM has allowed investors to contribute capital to real estate investment fund through real estate. — Photo

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has agreed to allow investors to contribute capital through real estate to create a real estate investment fund.

Under the recently issued Decree 60/2015/ND-CP, which details how to implement the specific provisions of the Securities Law, investors will also be allowed to contribute capital through real estate to increase the charter capital of the real estate investment fund.

However, investors need to meet two requirements to become eligible for the new regulation.

Firstly, their real estate must meet the regulations of the fund, as well as the investment targets and policies of the fund.

Secondly, the real estate must be legally owned by investors and should not be limited to the rights to transfer its ownership or to use the real estate; the real estate is not a guaranteed asset pledged or paid as a security, nor is it blockaded.

The decree regulates that the assessment of a real estate value, which has been planned to be contributed to the investment fund, must be carried out by two independent price assessment organizations in line with the current regulations on price assessment, on real estate business, as well as other regulations.

The assessment must be carried out for no longer than six months.

In case of setting up a real estate investment fund, the value of assets contributed must be approved by all investors who also contribute capital to the fund through real estate, and the fund founders (if available).

In case of increasing the charter capital of the fund, the value of assets contributed to the fund must be approved by the fund's shareholders. — VNS

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