The Regulatory Framework for Shareholder Loans from Real Estate Funds to Property Companies – And Vice Versa


When structuring real estate transactions for real estate funds, it can be advantageous to issue shareholder loans by the fund to a property company (« downstream loan »). Similarly, there may be situations in which it is economically advisable to grant loans from a property company to a fund (« upstream loan »). In both cases, the question arises as to whether these measures are permissible under supervisory law.

Read the full article in German here.