The amendment issued in 2019 includes changes to Article 2 of the administrative resolution, which stipulates that the fund’s real estate assets shall not be less than 75 per cent of its total assets.
Monday 08, July 2019 BY KUDAKWASHE MUZORIWA
The Securities and Commodities Authority (SCA) has amended an administrative resolution related to regulating the General Real Estate Investment Fund which will be in force upon its issuance.
SCA stated that revenues from real estate, interest, dividends and capital gains shall also not be less than 90 per cent of total revenues and net assets.
The regulator also clarified new regulations related to assessing ‘in-kind shares’ in investment funds, which include defining the obligations of the fund’s administration, founders and director as well as the cost of assessments, transferring ownership and penalties in case of violations.
Additionally, SCA said that Article 1 stipulates that the fund’s real estate assets should be approved by the relevant local authorities where a property is located, to prove ownership or permission to occupy based upon official contracts or the ownership of a company with the appropriate rights, according to WAM.