Art. 86

(Art. 59 para. 1 and 62 CISA)

1. The investments of real estate funds or real estate SICAVs must be specifically named in the fund regulations.¹
2. The following real estate, which is entered on the basis of the registration of the fund management company, SICAV or fund management company appointed by the SICAV pursuant to paragraph 2^bis, is deemed to be real estate pursuant to Article 59 paragraph 1 letter a CISA:²
   1. residential buildings;
   2. properties which are used exclusively or mainly for commercial purposes; mainly means where the income from the commercial element accounts for at least 60 per cent of the total income from real estate (commercially used properties);
   3. mixed-use buildings used for residential as well as commercial purposes; mixed means where the income from the commercial element accounts for more than 20 per cent but less than 60 per cent of the income from real estate;
   4. condominiums;
   5. building land (including properties for demolition) and buildings under construction;
   6. leasehold land.
3. The real estate must be entered in the Land Register under the name of the fund management company or SICAV with a remark to the effect that it belongs to the real estate fund. Where the real estate fund or SICAV under whose name the real estate is registered has subfunds, the subfund to which the real estate belongs must be specified.³
4. The following investments are also permitted:
   1. mortgage notes or other contractual charges on property;
   2. participations in and claims against real estate companies as defined in Article 59 paragraph 1 letter b CISA;
   3. units in other real estate funds (including real estate investment trusts or REITs) and real estate investment companies and certificates which are traded on a stock exchange or other regulated market which is open to the public, as defined in Article 59 paragraph 1 letter c CISA;
   4. foreign real estate securities as defined in Article 59 paragraph 1 letter d CISA.
5. Paragraph 2^bisapplies by analogy to mortgage notes or other contractual charges on property.⁴
6. Undeveloped plots of land belonging to a real estate fund must be connected to the infrastructure network and suitable for immediate development and must also possess legally effective planning permission for their development. Construction work must commence prior to the expiry of the period for which the relevant planning permission is valid.⁵