Difference between real estate fund and reit

I wanted to start a series of articles on finance and  Stock Market, something very simple for everyone.

Nowadays in no specializing Spanish daily press we read the Word SOCIMI

New concept even for people with some banking training.

Press reléase as SOCIMI  increase capital for two hundre millón euros or a new SOCIMI will be registered in the Stock Market for the next month, and so on…

SOCIMI is the name given in Spain for the English Word REIT.- Real Estate Investment Trust.

Deeply rooted worlwide , UK, FRANCE, GERMANY, ITALY and since the  60 s  its popularity in New York Stock Exchange-


SOCIMI s ( Public limited Company UK  or Incorporated Company USA, the shares are quoted on Stock >Market, obligatory by law)  are specializing in real estate: urban properties, houses, offices, buildings, business promises, semi-detached and detached houses, new promotion and so on

this FUNDS have the obligation to rent the majority of its properties.

there are other FUNDS that can invest in real estate but can sell such properties at any time

the SOCIMI ( REIT) may sell BUT only after three years of purchase.

it is important to emphasize that the real estate can be a single building, provided its value is mínimum five millon  euros .

Mínimum capital five millon euros and may be set up with a single owner-partner , unlike other funds that they required a number of partners rather hight

On the tax issue they do no pay any taxes but it is required by law to distribute profits every year.

Today I want to enphasize the  novelties that have been emerging  accoding to the  market -business of SOCIMI- REIT in Spain has been settling and muturing

At this momento the most imprtant . the increasinly specialization of SOCIMI REIT .

it´s not like at first : investment   rent and profitability.- any kind of  real property

Nowadays the majority of SOCIMI REIT have their investment plans very specific, each of them are specializing in hotels, offices, hosing, shopping center, buildings.

as well

A very important innovation in the changes in the MAB GUIDELINES to boost the development of construcction .

MAB  has created the concept of


they are socimi- reit that owns plots of land and they can obtain the advantages of a development Company and at the same time have the privileges or advantages of a SOCIMI-REIT



purchase-investment of piece of land, build  the building and once the Project is finished its rent.