Real Estate 2018
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ICLG The International Comparative Legal Guide to: Real Estate 2018 13th Edition A practical cross-border insight into real estate law Published by Global Legal Group with contributions from: Attorneys-at-Law Project Law Ltd Machado, Meyer, Sendacz e Opice Advogados BKA Attorneys at Law Maples and Calder Brulc Gaberščik & Partners, Law Firm, Ltd. Meyerlustenberger Lachenal AG BSA Ahmad Bin Hezeem & Associates LLP Nishimura & Asahi Cordero & Cordero Abogados Norton Rose Fulbright South Africa Inc. Cushman & Wakefield Osler, Hoskin & Harcourt LLP Gianni, Origoni, Grippo, Cappelli & Partners PAV Law Offices Greenberg Traurig Grzesiak sp.k Prieto Cabrera & Asociados SRL Greenberg Traurig, LLP Ropes & Gray LLP GSK Stockmann Shepherd and Wedderburn LLP Gürlich & Co. Simon Reid-Kay & Associates Hogan Lovells Tirard, Naudin Howard Kennedy Toronto CREW Konečná & Zacha Tughans Kubes Passeyrer Attorneys at Law Ziv Lev & Co. Law Office The International Comparative Legal Guide to: Real Estate 2018 General Chapters: 1 Real Estate Joint Ventures: New Paradigm or Passing Fashion? – Iain Morpeth, Ropes & Gray LLP 1 2 Serviced Offices: The Changing Face of the Real Estate Market – Rebecca Davison & Nicky Stewart, Howard Kennedy 5 Contributing Editor 3 Toronto CREW and an Outlook on the Canadian Market for 2018 – Rosalyn Wallace, Toronto CREW Iain Morpeth, & Stuart Barron, Cushman & Wakefield 9 Ropes & Gray LLP Sales Director Country Question and Answer Chapters: Florjan Osmani 4 Austria Kubes Passeyrer Attorneys at Law: Dr. David Kubes & Mag. Marko Marjanovic 12 Account Director 5 Brazil Machado, Meyer, Sendacz e Opice Advogados: Maria Flavia Candido Seabra Oliver Smith & Fatima Tadea Rombola Fonseca 20 Sales Support Manager Toni Hayward 6 Canada Osler, Hoskin & Harcourt LLP: Heather McKean & Stella Di Cresce 30 Senior Editors 7 Costa Rica Cordero & Cordero Abogados: Hernán Cordero B. & Rolando Gonzalez C. 43 Caroline Collingwood & Suzie Levy 8 Czech Republic Gürlich & Co.: JUDr. Richard Gürlich, Ph.D. & Mgr. Kamila Janoušková 53 Chief Operating Officer 9 Dominican Republic Prieto Cabrera & Asociados SRL: Aimée Prieto 60 Dror Levy 10 England & Wales Ropes & Gray International LLP: Carol Hopper & Partha Pal 70 Group Consulting Editor Alan Falach 11 Finland Attorneys-at-Law Project Law Ltd: Matias Forss & Sakari Lähteenmäki 81 Publisher Rory Smith 12 France Tirard, Naudin: Maryse Naudin & Jean-Marc Tirard 89 Published by 13 Germany GSK Stockmann: Olaf Jacobsen & Sascha Zentis 99 Global Legal Group Ltd. 59 Tanner Street London SE1 3PL, UK 14 Hong Kong Simon Reid-Kay & Associates: Simon Reid-Kay & Leslie Kaczmarek 109 Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 15 India PAV Law Offices: Kiron Prabhakar & Navin B. Singh 119 Email: [email protected] URL: www.glgroup.co.uk 16 Ireland Maples and Calder: Diarmuid Mawe & Craig Kenny 129 GLG Cover Design F&F Studio Design 17 Israel Ziv Lev & Co. Law Office: Moshe Merdler & Ziv Lev 143 GLG Cover Image Source iStockphoto 18 Italy Gianni, Origoni, Grippo, Cappelli & Partners: Davide Braghini 153 Printed by Ashford Colour Press Ltd 19 Japan Nishimura & Asahi: Hideaki Ozawa & Yujin Gen 163 December 2017 20 Northern Ireland Tughans: David Jones & Luke Thompson 175 Copyright © 2017 Global Legal Group Ltd. All rights reserved 21 Poland Greenberg Traurig Grzesiak sp.k.: Agnieszka Stankiewicz & Barbara Pancer 183 No photocopying 22 Scotland Shepherd and Wedderburn LLP: David Mitchell & Scott Ritchie 192 ISBN 978-1-911367-86-4 ISSN 1749-4745 23 Slovakia Konečná & Zacha: Mgr. Vladimír Kordoš, LL.M. 205 Strategic Partners 24 Slovenia Brulc Gaberščik & Partners, Law Firm, Ltd.: Damijan Brulc & Marjetka Kenda 216 25 South Africa Norton Rose Fulbright South Africa Inc.: Pieter Niehaus 224 26 Spain Hogan Lovells: Emilio Gómez Delgado 233 27 Switzerland Meyerlustenberger Lachenal AG: Wolfgang Müller & Christian Eichenberger 243 28 Turkey BKA Attorneys at Law: Göktuğ Can Burul & Onur Atakan 251 29 UAE BSA Ahmad Bin Hezeem & Associates LLP: John Peacock 258 30 USA Greenberg Traurig, LLP: Christina Braisted Rogers 268 Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. WWW.ICLG.COM EDITORIAL Welcome to the thirteenth edition of The International Comparative Legal Guide to: Real Estate. This guide provides corporate counsel and international practitioners with a comprehensive worldwide legal analysis of the laws and regulations of real estate. It is divided into two main sections: Three general chapters. These are designed to provide readers with a comprehensive overview of key issues affecting real estate, particularly from the perspective of a multi-jurisdictional transaction. Country question and answer chapters. These provide a broad overview of common issues in real estate laws and regulations in 27 jurisdictions. All chapters are written by leading real estate lawyers and industry specialists and we are extremely grateful for their excellent contributions. Special thanks are reserved for the contributing editor Iain Morpeth of Ropes & Gray LLP for his invaluable assistance. Global Legal Group hopes that you find this guide practical and interesting. The International Comparative Legal Guide series is also available online at www.iclg.com. Alan Falach LL.M. Group Consulting Editor Global Legal Group [email protected] PREFACE It is a pleasure to have been asked to provide the preface to The International Comparative Legal Guide to: Real Estate for 2018, which is now in its thirteenth edition. The Guide has become a well-established benchmark for international real estate transactions and is one of the most comprehensive available. The 2018 edition now contains contributions covering 27 countries round the globe. With investment capital flowing round the world so much more freely than in the past, an understanding of the diverse ways in which transactions in the real estate market are dealt with in different jurisdictions has become an increasingly important requirement for the international investor. We hope you find the Guide a useful reference point when faced with a question concerning cross-border real estate transactions and we encourage you to contact us with suggestions to improve future editions. Iain Morpeth Partner Ropes & Gray LLP Contributing Editor Chapter 1 Real Estate Joint Ventures: New Paradigm or Passing Fashion? Ropes & Gray LLP Iain Morpeth Some investors also carried out their own refurbishment or 1 Introduction redevelopment of obsolete investment stock when occupational leases came to an end, particularly the larger quoted property One of the notable developments in the international real estate companies that had development portfolios in addition to investment market over the last 15 years has been an explosion in the use of and trading portfolios. But most redevelopment activity was carried joint ventures in property transactions. A piece of legal technology out by entrepreneurial developers with smaller balance sheets who will often go through rapid periods of growth before falling out of bought up obsolete stock, obtained planning permission, pre-let, fashion but, as investment flows become more international and the redeveloped and then sold, often back to the pension funds and size of transactions in the real estate world grows, is this a structural assurance companies from whom they had bought in the first place. shift or just a passing fashion? Investors predominantly held prime assets yielding core returns. A joint venture can be regarded as an arrangement by which two or The more risky process of redeveloping carried out by property more parties together carry out a common transaction and we should companies enjoyed a higher, more opportunistic, but more volatile, not be restrictive about the form that the arrangement can take. The level of return for the risk they were taking. structure chosen for a transaction will often be influenced by the need to achieve tax transparency and avoid double taxation, as well Contrast that to the position today. In the first place there are as by the jurisdiction in which it is established, but common forms multiple sources of capital across the whole risk spectrum from include limited partnerships, limited companies and, increasingly, core, core plus through value added to opportunistic. Capital is fund structures because of their tax neutrality. Nevertheless, international. Equity capital can come from private funds, specialist whatever legal form the arrangement takes, the same issues have private equity real estate funds, pension funds, investment banks, to be addressed. assurance companies, endowments, family offices, sovereign wealth funds, private property companies, REITs or retail funds. Debt is This chapter considers: available from credit and debt funds, as well as from banks and ■ some changes in the real estate world; other financial institutions, and can be provided at any level in the ■ differing types of joint venture; capital structure. ■ UK joint venture structures;