With Parliament about to debate rules governing real estate investment trusts (Reits) as part of the Finance Act 2006, F&C has issued a call to include further rule changes to ensure a wider spread of Reit vehicles.
Current proposals mean establishing a Reits market presence is really only open to already existing, larger property companies with large shareholder bases. Paul Herrington, head of UK property investment at F&C, says the rules mean new entrants will find it hard to establish themselves, bearing in mind conversion costs, gearing restrictions and the requirement for income distribution. Together, the rules would make it difficult for Aim-listed property companies to convert - as Aim is not a recognised market for purposes of the legislation - while existing property unit trusts would find ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes