Efficient vehicle for acquisition
- Access to the Property cash flow with less interference
The Fund must distribute to the quotaholders at least 95% of the Fund’s net result for the year, calculated based on Cash NOI, on the basis of a semiannual balance sheet closed on June 30 and December 31 of each year.
- More efficient tax structure
Law No. 11,033/04 exempts from withholding income tax and income tax due upon the income distributed by real estate investment funds for individual investors resident in Brazil owning quotas representing less than 10% of the total outstanding quotas or rights over quotas or arising from quotas that do not entitle such persons to 10% or more of the Fund’s earnings. Such exemption only applies if the quotas are admitted to trading exclusively on stock exchanges or an OTC market, and provided that such fund has at least 50 quotaholders.
- Expenses structure through the administration fee
The expenses of the management team are limited to 1.35% administration fee and therefore expenses of real estate investment funds are more predictable and fluctuate less than company expenses, which have a larger variable component.