As a premise, we want to give to the little ones and means investors, who wants to put their own savings protected from the remarkable and dangerous oscillations of the stock market, let alone from the insufficient profit offer from the ordinary market of the banks, a way at the same time to render the positioning of ours investments in a stable, contextually sure market and at the same time a source of an appreciable yield.
Such objective can easily be caught up using that one risen of shelter assets represented by the Real Estate Closed Funds, that are become an unavoidable and important truth into the national and international real estate markets and that offers to the thrifty people a normative protection not only in the level of transparency of the appraisals but also in the content of the informative prospect for the underwriters.
The element characterizing and fundamental of every "real estate fund" consists in the possibility to render the large investments for the purchase of buildings able to be commerced, by means of the constitution of quotas that gives an impulse to financial activities destined to the liquidity creation that otherwise every single investor could not decide, let alone to avoid the inherent procedures of direct purchase of buildings and the burdens of their direct management.
The definition of "closed funds" derives from the circumstance that the underwriters of the quotas can exercise the right to the reimbursement in expiration dates predetermined from the societies that manage every real estate, made blank the options that they will be of continuation described.
The patrimony comes initially subdivided in a determined number of quotas and then have the following variations:
- increase or lessening of the value of the pieces of real estate deriving from the course of the relative market;
- course of the buildings rent and the burdens of management;
- reimbursements to determined expiration dates;
- new subscriptions.
Once predefined the initial asset and underwritten the relative quotas, the possessors can use the Real estate quoted market to negotiate the same quotas with operations of purchase and sale; such last operation renders possible to realize an immediate liquidity, that is the availability of the invested asset, plus the difference deriving from the value of the quota and the distributed dividends, based on the deliberations approved by the semiannual and annual board of directors.
The liquidation of the quotas in the stock market does not happen to the value of the NAV (net asset value, that is the unitary value of the quotas calculated from the independent experts in the budget), but to the fair market value, that has often a remarkably discount regarding the NAV, till of 30%.
This on one side constitutes for the underwriters a price to pay in order to obtain an immediate reimbursement of the quotas, but on the other side constitutes a good opportunity to buy at discount prices for the other investors.