Nov 25, 2011

Vietnam - Funds allowed investing 65% of NAV in real estate



Real estate investment funds are allowed to invest at least 65% and maximum 100% of their Net Asset Value (NAV) in realty projects, the Saigon Economic Times reported, citing the draft guidance circular on forming and managing securities investment funds.

Property investment funds are also permitted to invest maximum 35% of their NAV in money and money-equivalent instruments, valuable papers, transfer instruments according to laws on banking, listed securities, registered stocks, government bonds or government-guaranteed bonds.

Under the draft circular, these funds are disallowed to lend or underwrite any loan, or borrow more than 5% of their total assets at the borrowing time.

In addition, properties must be held in at least 2 years from the purchase time, except the cases that properties are forced to be sold in line with legislative requirements or decisions of investors’ meeting or representative boards of funds.

VietBiz24



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