Luxembourg has grown in popularity as a domicile for real estate investment funds (Reifs), according to a survey released by the Association of the Luxembourg Fund Industry (Alfi) and conducted by Big Four accountancy firm EY Luxembourg.
The total number of Reifs in the survey has increased by 10% since the last Alfi Reif survey in 2014. A new category of investment vehicle has been included in the recent survey, the manager-regulated alternative investment fund (AIF).
The number of direct Reifs (excluding manager-regulated AIFs) have shown a compound annual growth rate of 16.45% since 2006.
Denise Voss, chairman of Alfi said that Luxembourg has achieved its aim of providing solutions for asset managers to distribute their funds globally.
Kai Braun, partner and alternatives advisory leader at EY said: “The survey results clearly underline the positioning of Luxembourg as domicile of choice for real estate investment funds established with the aim to invest internationally and distribute cross-border.”
The survey also found that Investors come mainly from Europe. However a significant portion comes from the Americas, Asia and the Middle East, suggesting the global appeal of the Luxembourg fund regime.
Read the survey here.
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