Section 2: FIA

In accordance with the conditions set out in the General Regulations of the Autorité des marchés financiers, a property investment fund is set up by a portfolio management company responsible for its management. The management company draws up the fund rules. These regulations provide for the establishment of a supervisory board made up solely of representatives of unit-holders. The Supervisory Board has a minimum of two members and a maximum…

The real estate investment trust is represented vis-à-vis third parties by the company responsible for its management. This company may take legal action to defend or assert the rights or interests of unitholders. The central administration of the real estate investment trust is located in France.

The management company is liable to third parties or unitholders either for breaches of the legislative or regulatory provisions applicable to real estate investment funds, or for breaches of the fund rules, or for its own misconduct.

A real estate investment fund may be formed by cash contributions, contributions in kind of real estate assets mentioned in article L. 214-36, mergers or demergers. It may also be formed through mergers, demergers or conversions of non-trading property investment companies. Contributions in kind may be made to a real estate investment trust after it has been set up, in particular in the event of a merger with a société…

The redemption by the real estate investment trust of its units may be temporarily suspended by the management company when exceptional circumstances so require and if the interests of all unitholders so dictate, under conditions laid down in the general regulations of the Autorité des marchés financiers. The general regulations of the Autorité des marchés financiers shall in particular determine the cases in which and the conditions under which the…

The provisions of article L. 214-24-40 are applicable to real estate investment funds.

I.-The management company is required to file the declarations stipulated in article L. 233-7 of the French Commercial Code, for all shares held by the undertakings for collective investment in real estate it manages. II – The provisions of articles L. 233-14 and L. 247-2 of the Commercial Code apply to the management company.

The companies referred to in 2° of I of article L. 214-36 in which the real estate investment trust holds a direct or indirect interest are covered by article 8 of the General Tax Code, are not liable, automatically or by option, to corporation tax or an equivalent tax, and may not hold, directly or indirectly, rights held as lessee relating to leasing contracts.

I. – The sums distributable by a real estate investment fund in respect of a financial year are made up of : 1° Distributable income relating to income earned by the fund, which is equal to the net income referred to in article L. 214-51, plus retained earnings, plus or minus the balance of accruals as defined by decree; 2° Capital gains from the sale of assets mentioned in 1°…

Notwithstanding the provisions of article L. 214-52, the amounts distributable in respect of the capital gains mentioned in 2° of II of article L. 214-81 must be paid before the last day of the sixth month following the disposal of the aforementioned assets.