Real estate fund
A real estate investment fund invests its assets in developed and undeveloped properties that are diversified in terms of geography and the particular building or land parcel. Such funds may also invest in other securities that represent some form of real estate investment. In keeping with the Collective Investment Schemes Act (CISA), the manager of a real estate fund must invest in select properties. The precise valuation of a real estate fund is no easy matter. For that reason, the manager - at the approval of the supervisory authorities - must commission independent, qualified assessors to determine the valuation of the funds various properties. The assessors must examine and determine the fair market value of all of the funds properties upon purchase or sale and for application in the annual financial statements, as well as evaluate construction costs.