The key difference between open-ended and closed-ended property funds is how capital flows in and out of the fund.

Open-ended property funds

Open-ended property funds can continuously accept new investors and process redemptions, subject to fund rules.

Key characteristics:

• No fixed fund size or end date
• Investors can usually apply or withdraw periodically
• Fund size expands or contracts as money enters or exits
• Liquidity depends on:
  • Cash reserves
  • Property sales
  • Redemption policies
• Common for ongoing retail and wholesale property funds

Closed-ended property funds

Closed-ended property funds raise a fixed amount of capital and have a defined investment term.

Key characteristics:

• Capital is raised during a limited offer period
• No regular redemptions during the fund term
• Investors typically exit when:
  • Assets are sold at the end of the term, or
  • Units are transferred privately (if permitted)
• Common for single asset funds, syndicates, and development projects