1. Who may commission REAX?

As providers of open-ended institutional real estate funds, real estate AIF management companies may commission REAX to handle the initial subscription of fund units.

Institutional real estate investors as shareholders of special real estate funds may commission REAX to handle an exchange of their units. REAX will assist either group as well as intermediaries with its advisory services.

2. What significance does the secondary market have in the trading of fund units?

The secondary market for trading institutional fund units has enormous upside potential. According to the BVI Federal Association for Investment and Asset Management, the volume of open-ended real estate special AIF has increased by c. 60 billion euros since 2010. At the same time, the Bundesbank registered a massive surge in cash outflows from real estate special AIF, especially since 2016, in a total amount exceeding 12 billion euros. The combination has fuelled a growing demand for intermediaries between sellers and buyers of institutional fund units.

3. How do I benefit as a seller of fund units?

  • Transactions conducted in a discreet and confidential framework
  • Mediation by REAX in the event that discrepancies with AIFM companies or co-investors arise
  • Quicker exit at lower costs
  • Transaction cost advantages through share certificate trades 

4. How do I benefit as an investor?

  • Faster build-up of positions / avoiding open capital commitments
  • Avoiding the blind-pool risk
  • Option to acquire units in already established funds
  • Monitoring of existing funds, transparency in regard to co-investors
  • Shorter and predictable holding periods
  • Transaction cost advantages through share certificate trades

5. How do I benefit as an AIFM company?

  • Optimising the fund strategy through a homogenised investor structure
  • Preservation of assets under management
  • Enhancing client loyalty

6. What are the hands-on standard scenarios for selling a fund units?

  1. Let’s assume you have personal reasons (e.g. shift in strategy, real estate ratios or others) for wishing to sell your interest in a multi-investor fund. This is what we call the base case. REAX will support you in the fair pricing process and mediate the sale of your interest to a buyer, if needed.
  2. Alternatively, let’s assume you are in agreement with your co-investors and would like to exploit the market momentum to sell the assets at the best possible price before winding up the fund. This we call the maximisation case. REAX will introduce you to another option that supplements an asset deal by exchanging the units of the entire fund (= unit deal). We will gladly elaborate the advantages and procedure to you in a personal meeting.
  3. Supposing you and your co-investors differ in regard to the strategic orientation of the fund, with no solution in sight. We call this the mediation case. Here, REAX assumes the role of a neutral mediator, analysing the situation, suggesting solutions to resolve the deadlock, if so requested, and supporting the investors in the implementation of an optimal solution approach that reconciles the interests of all stakeholders in a fair and discreet manner.
  4. What if the fund is not delivering the predicted returns on investment? You may see a need to strategically realign your funds. It is what we call the optimisation case. Here, as in the case above, REAX takes on the role of a neutral mediator.

7. What are our rates and conditions?

Our remuneration is generally success-based, depending on the case at hand and the complexity of the task. Please do not hesitate to contact us to request a bespoke quote for your specific case.