|
|
|
|
|
Newsletter | April 2017, Issue 1
|
|
|
|
|
|
|
REAL ESTATE
|
|
|
|
Asset Management Companies of REITs Now Allowed to Engage in Collective Investment Business
|
|
|
|
On December 30, 2016, certain amendments to the Enforcement Decree of the Real Estate Investment Company Act (the “REIT Act”, and such amendments, the “Amendments”) became effective.1 These amendments, among others, allow an asset management company under the REIT Act to engage in collective investment business.
|
|
|
|
Certain amendments to the Financial Investment Services and Capital Markets Act (the “Capital Markets Act”) eased the requirement for a “jusik-hoesa” type real estate funds to invest up to 70% of its total assets in real estate. In practice, there is no difference between investment assets, which may be managed by REITs, and those that may be managed by real estate funds. Accordingly, an asset management company under the REIT Act is now allowed to engage in collective investment business of real estate funds under the Capital Markets Act.
|
|
|
|
|
|
|
|
|
|
| 1 |
|
The Amendments deleted the proviso of Article 21 paragraph 3 of the Enforcement Decree of the REIT Act
|
|
|
|
|
|
|
|
Back to Main Page
|
|
|
|
|
|
If you have any questions regarding this article, please contact below:
|
|
|
|
|
|
|
|
For more information, please visit our website:
|
|
|
|
|
|
|
|