F&C queries Reit rules and suitability

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 fin...