Commercial property investment in Australia is regulated under a combination of corporations law, financial services regulation and property law.

Managed investment schemes

Most commercial property funds operate as managed investment schemes under the Corporations Act 2001.

These schemes must:

• Be registered with the Australian Securities and Investments Commission (ASIC)
• Have a licensed Responsible Entity
• Operate in the best interests of investors
• Comply with the fund’s constitution and compliance plan

Disclosure requirements

Commercial property funds offered to retail investors must provide a Product Disclosure Statement (PDS).

The PDS explains:

• How the fund works
• Key risks and fees
• How distributions and withdrawals operate
• How assets are valued and priced

This disclosure helps investors make informed decisions.

Licensing and oversight

Fund managers must hold an Australian Financial Services Licence (AFSL) issued by ASIC.

ASIC oversees:

• Disclosure standards
• Conduct and compliance
• Ongoing reporting obligations

Investor protections

Regulation is designed to protect investors by requiring:

• Clear and ongoing disclosure
• Independent asset valuations
• Defined rules for withdrawals and unit pricing
• Separation of fund assets from the manager’s assets

Other relevant regulation

Commercial property investments are also subject to:

• State‑based property and leasing laws
• Taxation laws administered by the Australian Taxation Office (ATO)
• Prudential regulation by APRA where superannuation funds are involved

Because regulatory requirements vary by structure and investor type, investors should review the relevant PDS and seek professional advice before investing.