Setting Up a Real Estate Fund
In Singapore


SCALABLE, FLEXIBLE, TAILORED FOR FUNDS

Real Estate Fund

Singapore has become a popular destination for real estate funds, thanks to its stable political and economic climate, business-friendly environment, and favourable regulatory framework. Real estate funds structured as VCCs in Singapore offer investors the opportunity to invest in a professionally managed portfolio of real estate assets, including commercial, residential, and industrial properties. By setting up a fund structure in Singapore, investors gain access to a robust financial ecosystem, influx of wealth and strategic positioning in Asia.

Hedge Fund
VCC Overview

Key players

① Real Estate Fund

With the VCC, real estate funds can set up a fund that is tailored to their investors needs and objectives, while enjoying a streamlined regulatory framework and tax benefits. Under a single umbrella, they can create an unrestricted number of sub-funds catered to different strategies and audiences. VCC also guarantees privacy as investor information is not made public.

② Singapore Licensed Fund Manager

Private equity firms can apply for a Singapore fund license but would need full-time investment professionals in Singapore. Alternatively, it can outsource this role to an existing licensed fund manager in Singapore for easier access.

③ Fund Service Providers

The service providers that provide the operational services for the fund. These include accounting, auditing, legal, and administrative services.

④ VCC Umbrella Fund

Sub-funds can be tailored for a variety of structures and purpose as there are no restrictions on where and what the VCC can invest to. Each sub-fund can have its own advisor and strategy, allowing performance benchmarking between various strategies and advisors. The VCC can also be used to feed into existing funds setup in other jurisdictions.

Key Players of the VCC - Directors, Fund Managers, Service Providers and the VCC Fund

Tax Exemption Requirements

For license-managed VCCs

13O Resident Tax Exemption

13U Enhanced-Tier Tax Exemption

Tax residency

Fund must be tax resident of Singapore

Fund can be constituted in Singapore or overseas

Fund manager requirements

Requires a Singapore-based CMS licensed fund manager

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals

AUM

No restrictions

Minimum fund size of SGD 50 million

Fund reporting requirement

Min. SGD 200,000 annual expenses

Min. SGD 200,000 annual local business spending

Fund administration requirement

Annual statements to investors. Tax filing to IRAS for non-qualifying investors.

None needed

Fund administration requirement

Requires a Singapore fund administrator

Other reporting requirements

Annual MAS declaration & annual tax returns to IRAS

13O Resident Tax Exemption

Fund must be tax resident of Singapore

Requires a Singapore-based CMS licensed fund manager and fund administrator

No minimum AUM

Min. SGD 200,000 annual expenses

Annual MAS declaration & annual tax returns to IRAS

13U Enhanced-Tier Tax Exemption

Fund can be constituted in Singapore or overseas

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals & a fund administrator

Minimum fund size of SGD 50 million

Min. SGD 200,000 annual local business spending

Annual MAS declaration & annual tax returns to IRAS

Setup Steps & Timeline

Singaporean Efficiency

ProcessEstimated Time
1) Engage a fund manager as the central coordinator for your fund
2) Confirm the fund structure’s term sheet such as the investment period, fund life, management fee, carry, valuation frequency, investment targets and fund size, etc.
3) Select a legal counsel, fund administrator, corporate secretary and auditor
3) Draft legal documents such as company constitution, private placement memorandum, management, subscription and redemption agreements, etc.3-4 weeks
4) Register and Incorporate the VCC with the MAS4-6 weeks
5) Apply for the 13O/U tax exemption4-6 weeks
6) Start onboarding the investors
7) Create additional sub-funds for different investors and strategies

Benefits of the VCC
For Real Estate Funds

Scalable &
Segregated

Under a single umbrella, unlimited sub-funds can be opened that would have no bearing on other funds.

Flexibility of
Strategies

Funds can have a variety of strategies and different sub-fund advisors across global real estate markets.

Umbrella
Efficiency

The VCC tax exemption is assessed on an umbrella level, allowing each sub-fund contributes to the requirements.

Access
Singapore

Investing in Singapore gives the assurance their assets are well-safeguarded by strong regulations and access to the influx of wealth in Singapore.

A New Frontier

Get connected with our service partner providers to inquire how you may start your real estate fund and access Singapore — the preeminent financial hub of Asia
[email protected]

Start a Real Estate VCC

Get connected to VCC Fund Managers