Investing · Jurisdiction DE
Open-ended real estate funds
An open-ended real estate fund holds property and issues units. Returning units to the company is not possible every day. The periods are in the statute.
In more detail
As of the text of the Capital Investment Code section 255: units can be returned to the company only on a redemption date before which they were held continuously for 24 months. The irrevocable return notice must reach the capital management company twelve months before that date. The twelve months are not added on top of the 24 months. The price is not yet fixed when the notice is given. A sale on the exchange is a different path, and the exchange price can differ from the redemption price. Units already in the account on 21 July 2013 are exempt under section 346 from the minimum holding period and the notice period, as long as returns do not exceed 30,000 euro per calendar half-year per investor.
Background
BaFin points out that redemption can be suspended in cases the statute sets; if liquidity is insufficient it must be suspended (Capital Investment Code section 257). During a suspension you do not reach the money through the company. A sale on the exchange is a separate path and needs a buyer. This is not a closed-end fund and not a dwelling of your own. Finmon names no fund and no return.
An example
You want to return units to the company after half a year. The earliest redemption date is 24 months after the purchase. The irrevocable notice has to be given twelve months before that date. It does not start only once the 24 months have already elapsed. A sale on the exchange can be possible sooner, at a price Finmon does not know.
A common misconception
Open-ended means the money is there every day, like in a current account.
Returning units to the company has a holding period and a return notice, and redemption can be suspended. The twelve months sit before the redemption date and are not added on top.
Source: KAGB §§ 255, 346 und BaFin. Last reviewed: 2026-10-27. Editorially reviewed on 2026-10-27. Next review 2027-10-27. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.