law of 20 December 2002 - Alfi

- shareholdings in real estate companies (including claims on such companies) the exclusiveobject and purpose of which is the acquisition, promotion and sale as well as the lettingand agricultural lease of property provided that these shareholdings must be at leastas liquid as the property rights held directly by the UCI;- property related long-term interests such as surface ownership, leasehold and options onreal estate assets.The rules provided for hereafter modify the rules of the general regime on the followingpoints:1. Management bodies.With regard to the professional qualification, the directors of the management bodies and,where applicable, the investment advisors, must have specific experience in real estateassets.2. Investment restrictions.The investment restrictions applicable to traditional UCITS do not apply to UCIs subjecthereto. Nevertheless, the investment in real estate assets must be diversified to an extentthat an adequate spread of the investment risk is warranted. In order to achieve a minimumspread of such risks, UCIs subject hereto may not invest more than 20% of their net assetsin a single property, such restriction being effective at the date of acquisition of the relevantproperty. Property whose economic viability is linked to another property is not considereda separate item of property for this purpose.This 20% rule does not apply during a start-up period which may not extend beyond fouryears after the closing date of the initial subscription period.3. Issue and redemption of securities.The net asset value on which the issue and redemption prices of the securities are basedmust be determined at least once a year, namely at the end of the financial year, as wellas on each day on which shares or units are issued or redeemed. In respect of real estateassets, management may use the valuation established at the year end throughout thefollowing year unless there is a change in the general economic situation or in the conditionof the properties which requires new valuations to be carried out under the sameconditions as the annual valuation.Should the investors have the right to present their securities for redemption, the UCI mayprovide for certain restrictions thereto. In addition, where it is justified, notably with regardto a specific investment policy, the UCI has the obligation to restrict such right of redemption.These restrictions must be clearly and precisely described in the prospectus. The UCImay inter alia provide for delays of payment in case it does not hold sufficient liquid assetsto immediately settle redemption requests.124