Investors need to fully understand their liquidity rights when investing into a vehicle. INREV therefore establishes common standards of behaviour for managers and investors in non-listed real estate vehicles in the context of the exercise of liquidity rights.
The manner in which equity is subscribed to and redeemed from a vehicle has a material impact on the interests of new and existing investors. Overseeing the establishment of a fair liquidity mechanism and the disclosure of it to investors should be one of the objectives of a vehicle’s corporate governance activities. In some jurisdictions and in relation to certain vehicle structures the mechanism is prescribed by legislation or government regulations. In these cases, full disclosure of the rights, obligations and process should still be considered best practice to ensure the vehicle is suitable for the investor.
INREV’s Liquidity Guidelines are based on a framework of six principles:
If you have any questions please contact the Professional Standards team under email@example.com or phone +31 (0)20 235 8600.