Special Purpose Vehicle (SPV)

A separate legal entity, typically a limited liability company, created specifically to hold, manage, and isolate a real estate asset from the parent investor's other assets.

A Special Purpose Vehicle is a legal entity created for a specific purpose, typically owning a single property or investment. The SPV isolates the asset's risk from the investor's personal assets (liability protection) and provides a clean structure for multiple investors to co-own property.

Investing through an SPV provides liability protection and organizational clarity, but it also introduces governance risk if the SPV documentation is not properly structured. Ensure the shareholders' agreement or subscription agreement governing the SPV clearly specifies your rights, the decision-making process, exit mechanisms, and what happens to the SPV if the sponsor or GP is unable to continue managing it.

SPVs are the standard structure for institutional real estate investment in Dubai. DIFC and ADGM offer purpose-built SPV frameworks with minimal capital requirements.

Oliva structures property investments through regulated SPVs, providing investors with clear ownership rights, liability protection, and transparent governance for each asset.

The SPV isolates the asset's risk from the investor's personal assets (liability protection) and provides a clean structure for multiple investors to co-own property. Liability isolation: Creditors of one property cannot reach other assets Multiple investors: Shareholders in the SPV own proportional shares of the property Exit flexibility: Share transfer is often simpler than property transfer (potentially avoiding DLD fees) Tax planning: DIFC and ADGM SPVs offer favorable structures for international investors