Q&A: Why is Luxembourg the centre for real estate funds?

Pierre Reuter, partner, Hogan Lovells, Luxembourg

Luxembourg has been a centre for the structuring of real estate funds for quite some time now.

As of Q3 2017, the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier, reported 316 regulated real estate funds (comprising single funds and compartments of umbrella structures) in Luxembourg, with close to €56bn in assets under management.

These figures do not take into account the multitude of unregulated vehicles active in the real estate space that are domiciled in Luxembourg. These are either used as fundraising