[BUYING AND SELLING REAL ESTATE IN PORTUGAL]
199
increasing or reducing its number, if and when mentioned in the law and in the management regulation; iii) Mixed funds – with a fixed number of investment units and variable number, included in two different categories. FII’s are a type of undertaking for collective investment ("OIC") of a contractual nature, which management and representation must be performed by third ones specialized in the real estate market – as a general rule, by a management company of a collective investment undertaking (“SGOIC”). The management company of a real estate investment fund must be a public limited company and have its head office and effective management in Portugal. The creation of these entities requires a formal process, which includes authorization and official supervision from the Securities Commission (“ Comissão do Mercado de Valores Mobiliários ” or “CMVM”). The assets of a FII may comprise liquidity, real estate property and shareholdings in real estate companies, including units in other real estate companies. V.3. REAL ESTATE INVESTMENT COMPANIES In 2010, Portugal included in its legislation a possibility that already existed in most of European countries, which consisted in forming FII's with a corporate form (aside of the contractual form previously mentioned). The so- called “ Sociedade de Investimento Coletivo ” are collective investment entities (“OIC”) with legal personality, which shall take the form of a public limited liability
company of variable capital ("SICAVI") or fixed capital ("SICAFI"). These collective investment companies can be self-managed or managed by management companies of collective investment undertakings ( “ SGOIC ” ). The share capital of the collective investment companies is divided into identical nominative shares with no nominal value, and they shall have a minimum initial capital of 50,000 € (fifty thousand euros) or 300,000 € (three hundred thousand euros), depending on whether they are heterogeneous or self- managed. In addition to the activities permitted for this type of collective investment undertaking, these companies also have the exclusive corporate purpose of conducting the following activities: - Investment management, undertaking the acts and operations necessary for the proper implementation of the investment policy; - Management of the collective investment undertaking; - Marketing the units of the collective investment undertakings under management. Both SICAVI AND SICAFI are subject to the Asset Management Regime (“ Regime da Gestão de Ativos ”) - which has revoked the General Framework of Collective Investment Undertakings – and by the provisions of the Portuguese Companies Code, except when it is incompatible with the specific nature and object of these companies or with the provisions of the Asset Management Regime.
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter