F1PART 4APROPERTY AIFS

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Amendments (Textual)

CHAPTER 2ENTRY INTO AND MEMBERSHIP OF THE PROPERTY AIF REGIME

The corporate ownership condition

The corporate ownership condition69K

1

The corporate ownership condition is that the open-ended investment company must meet conditions A to C and (if applicable) condition D at the time that this Part begins to apply to the company and throughout the accounting period.

This is subject to regulation 69L(1).

2

Condition A is that no body corporate is beneficially entitled (directly or indirectly) to 10% or more of the net asset value of the fund.

3

Condition A is treated as met if—

a

the company has taken reasonable steps to prevent a body corporate from acquiring a holding of 10% or more of the net asset value of the fund,

b

a body corporate has nevertheless acquired such a holding,

c

immediately upon becoming aware of the situation, the company has taken steps to ensure that the holding is reduced below 10% of the net asset value of the fund, and

d

the company has continued, with all reasonable speed, to take steps to ensure that the holding is so reduced.

4

Condition B is that the company’s instrument of incorporation and its prospectus include provisions under which any body corporate which becomes a F2participant in the company—

a

must undertake not to acquire 10% or more of the share capital of the company, and

b

must undertake, on becoming aware that it has acquired 10% or more of the share capital of the company, to reduce its holding of that share capital below 10%.

5

Condition C is that the company’s instrument of incorporation and its prospectus include provisions under which a body corporate acquiring shares in the company must give a certificate in accordance with paragraph (6) or (7).

6

The certificate is a certificate that the body corporate acquiring shares holds the shares as beneficial owner.

7

The certificate is a certificate that the body corporate acquiring shares holds some or all of those shares otherwise than as a beneficial owner, but that the body corporate—

a

holds less than 10% of the share capital of the company on behalf of itself or any one other corporate beneficial owner, and

b

has obtained the undertakings in the terms specified in sub-paragraphs (a) and (b) of paragraph (4) from every other body corporate on whose behalf it owns shares in the company otherwise than as a beneficial owner.

8

Condition D is that, in a case in which the body corporate acquiring shares in the company gives a certificate in accordance with paragraph (7), the body corporate acquiring the shares has undertaken to disclose the following information to the manager of the company if the manager so requires—

a

the names of any body corporate on whose behalf the body corporate owns shares in the company otherwise than as a beneficial owner, and

b

the extent of the holding of that body corporate in the company.