On 8 June 2021, the CSSF (Commission de Surveillance du Secteur financier – Luxembourg’s Financial Sector Supervisory Authority) published a statement relating to the data collection on commercial real estate for investment fund manager in order to identify and monitor vulnerabilities that arise from the interplay between the real estate market and the financial system.
The Comité du Risque Systémique in Luxembourg works in coordination with several authorities to accommodate the recommendations of the European Systemic Risk Board (“ESRB”). In this context, the CSSF will implement a recurrent data collection more particularly on the financing of the commercial real estate ("CRE") by investment funds.
The requests for data collection of commercial real estate as defined below are addressed to Investment Fund Managers (“IFM”) who manage funds with an exposure to the real estate market. The funds subject to the reporting should meet the following cumulative conditions:
- The funds managed by the IFM are Luxembourg regulated (i.e. SIF, SICAR, Part II UCIs) or unregulated (i.e. RAIF, unregulated AIF) investment funds;
- The Luxembourg funds have, according to their reporting, a predominant strategy defined as “Real Estate”;
- The Luxembourg funds are neither funds of real estate funds (irrespective of the country of domiciliation of the target funds) nor feeder funds investing in a master domiciled in Luxembourg;
- The Luxembourg funds have a direct or indirect exposure to the commercial real estate market, defined as follows:
“Commercial real estate means any income-producing real estate, either existing or under development, including rental housing; or real estate used by the owners of the property for conducting their business, purpose or activity, either existing or under construction; that is not classified as residential real estate; and includes social housing.”
Timeline for reporting:
- This data collection will take place twice a year. For the purpose of the first data collection, answers are expected by 30 September 2021, based on CRE stock data ending 31 December 2020 and CRE investment data for the second half of 2020.
- From 2022, data collection will take place twice a year, on 31 March and 30 September of each year. The report due on March 31 will refer to stock data ending 31 December of the previous year and investment data from the second half of the previous year. The report due on 30 September will refer to stock data from 30 June of the same year and investment data from the first half of the same year.
The IFMs will be contacted by the CSSF to complete the questionnaire over the CSSF eDesk to provide the first relevant reporting by 30 September 2021.
For further information, please contact Virginie Leroy and Jevgeniy Nesch.
On 8 June 2021, the CSSF (Commission de Surveillance du Secteur financier – Luxembourg’s Financial Sector Supervisory Authority) published a statement relating to the data collection on commercial real estate for investment fund manager in order to identify and monitor vulnerabilities that arise from the interplay between the real estate market and the financial system.
The Comité du Risque Systémique in Luxembourg works in coordination with several authorities to accommodate the recommendations of the European Systemic Risk Board (“ESRB”). In this context, the CSSF will implement a recurrent data collection more particularly on the financing of the commercial real estate ("CRE") by investment funds.
The requests for data collection of commercial real estate as defined below are addressed to Investment Fund Managers (“IFM”) who manage funds with an exposure to the real estate market. The funds subject to the reporting should meet the following cumulative conditions:
- The funds managed by the IFM are Luxembourg regulated (i.e. SIF, SICAR, Part II UCIs) or unregulated (i.e. RAIF, unregulated AIF) investment funds;
- The Luxembourg funds have, according to their reporting, a predominant strategy defined as “Real Estate”;
- The Luxembourg funds are neither funds of real estate funds (irrespective of the country of domiciliation of the target funds) nor feeder funds investing in a master domiciled in Luxembourg;
- The Luxembourg funds have a direct or indirect exposure to the commercial real estate market, defined as follows:
“Commercial real estate means any income-producing real estate, either existing or under development, including rental housing; or real estate used by the owners of the property for conducting their business, purpose or activity, either existing or under construction; that is not classified as residential real estate; and includes social housing.”
Timeline for reporting:
- This data collection will take place twice a year. For the purpose of the first data collection, answers are expected by 30 September 2021, based on CRE stock data ending 31 December 2020 and CRE investment data for the second half of 2020.
- From 2022, data collection will take place twice a year, on 31 March and 30 September of each year. The report due on March 31 will refer to stock data ending 31 December of the previous year and investment data from the second half of the previous year. The report due on 30 September will refer to stock data from 30 June of the same year and investment data from the first half of the same year.
The IFMs will be contacted by the CSSF to complete the questionnaire over the CSSF eDesk to provide the first relevant reporting by 30 September 2021.
For further information, please contact Virginie Leroy and Jevgeniy Nesch.