A first experience report
With the entry into force of the Fondsstandortgesetz (FoStoG) on August 2, 2021, the legislature created the closed-ended special fund of the contractual type (Geschlossenes Sondervermögen) as a new investment option in the real estate sector. As insignificant as the newly introduced § 139 S. 2 KAGB, according to which “closed-ended domestic special AIFs can also be established as funds of the contractual type”, may sound, the possibilities associated with it represent a novelty in the German market. The following article is intended to provide an overview of the closed-ended special fund in the real estate sector and to present initial practical experience with the advantages and disadvantages of the vehicle.
