Overview

Redemption modalities for real estate funds

Redeeming shares is still possible at the daily calculated value. The amendment to the Austrian Real Estate Investment Fund Act (ImmoInvFG) came into force from 01/01/2022. A minimum holding period (12 months) and a redemption period (12 months) will apply to Austrian real estate funds from 01/01/2027 at the latest.

The aim is to provide greater protection for investors. If a lot of investors want their money returned within a short time, this can lead to a liquidity bottleneck at the fund. With the introduction of deadlines, the fund company can plan liquidity better. If necessary, the fund management has sufficient time to sell properties at market prices to create additional liquidity. This emphasises the character of real estate funds as a long-term investment.

The law will be implemented within a transition period by 01/01/2027 at the latest. Details on the implementation are currently being co-ordinated. As soon as the modalities are clarified, comprehensive information is planned.

The main component of the amendment is the introduction of a 12-month holding period and a 12-month redemption period for Austrian real estate funds. After the minimum holding period has expired, investors may, for the first time, submit an irrevocable declaration of redemption to the depositary. Investors then receive the pay-out after the redemption period has expired. Please be aware that the redemption declaration must be made to your custodian bank and not to ERSTE Immobilien KAG.

We plan to contact you again with all the details at the end of 2025, in good time before all the deadlines actually come into effect. If you have any questions, please contact your bank advisor.