Art. 87

(Art. 62 CISA)

1. Real estate funds must spread their investments over at least ten properties. Residential estates which have been built using the same principles of construction and neighbouring plots of land are deemed to be a single property.
2. The market value of a single property may not exceed 25 per cent of the fund's assets.
3. The following limits expressed as a percentage of the fund's assets apply to the investments defined in a–d:
   1. up to 30 per cent of the fund's assets may be invested in building land, including properties for demolition, and buildings under construction;
   2. ¹ up to 30 per cent of the fund's assets may be invested in leasehold land;
   3. up to 10 per cent of the fund's assets may be invested in mortgage notes and other contractual charges on property;
   4. up to 25 per cent of the fund's assets may be invested in other real estate funds and real estate investment companies as defined in Article 86 paragraph 3 letter c.
4. The investments defined in paragraph 3 letters a and b may together account for up to 40 per cent of the fund's assets.²
5. FINMA may grant exemptions in justified individual instances.