G-Reits launch signals new opportunities

On the 23 March the lower house of Germany’s government, the Bundestag, approved plans for the introduction of G-Reits, but similar to the UK any law also needs the approval of the upper house, or Bundesrat, before it can come into force. The new legislation, which will be retrospective to 1 January 2007, will allow G-Reits to be traded on the stock exchange, and like the UK model the vehicle will attract tax relief providing at least 75% of yields come from real estate investment, and at least 90% of profits are distributed to shareholders. Ian Hally, investment director for real estate...