of introducing a Russian analogue of REIT, namely open-end real estate mutual funds with the possibility of regular purchase and the pandemic has accelerat the implementation of cutting remption of shares?
— The Bank of Russia has not receiv
any proposals to create real estate mutual funds. We believe that within the framework of such an initiative, the issue of ensuring the necessary level of liquidity of assets that make up the mutual fund requires separate consideration for investors to exercise their right to daily remption of investment units. At the same time, the ne to maintain such liquidity will lead to a potential decrease in the return on investment in such a mutual fund.
An alternative model is the widespread
orldwide model of constructing REITs as what does it mean for a website to be seo compliant? clos-end mutual funds, the shares of which are trad on the stock exchange. It has a number of advantages, as it allows the management company to invest the majority of assets in real estate without america email the ne to maintain a “liquidity cushion” to reem the shares.
Real estate investments have a complex pricing model and low liquidity.
