Property special funds are administered by a capital investment
company (Kapitalanlagegesellschaft) on trust for the unit-holders.
The capital investment company is regulated by the Federal
Banking Supervisory Board (Bundesanstalt für Finanzdienstleistungsaufsicht).
In addition, the management of the fund is monitored by
a custodian bank.
The custodian bank is obliged, for example, to check the terms
of any payment from the fund, in order to verify that such
payment is being made in accordance with the law and with
the terms of any relevant contract.
All properties are regularly valued by a panel of four
independent, and for the most part publicly certified, valuation
experts. Each property is valued first at acquisition and
re-valued subsequently on at least an annual basis.
Normally, each property special fund will have its own
investment committee acting as an advisory body and typically
comprising investor representatives, property specialists
from the shareholders in the capital investment company
and external property experts. The investment committee
gives recommendations concerning fund strategy, the payment
of dividends, as well as the purchase and sale of properties.