We have unrivalled experience in this key area of the real estate sector
Real Estate Investment Trusts (REITs) are designed to offer investors income and capital appreciation from rented property assets in a tax-efficient way, with a return more closely aligned with direct property investment. This is achieved by taking away the double taxation (corporation tax plus the tax on dividends) of ordinary property funds.
The introduction of UK REITs creates an opportunity for a wide range of investors to invest in property as an asset class by creating a more liquid and tax-efficient vehicle. It has been clear from the outset that their introduction would revolutionise the real estate market in the UK. It is a big issue for many of our clients and, indirectly, a wide range of others in the industry.
REITs are already an established part of the stock market in the US and many other countries, including Australia and the Netherlands. Here in the UK, the Government first announced its intention to launch REITs back in 1997 and the long awaited introduction of the UK REIT occurred on 1 January 2007.
Our team advised four out of nine of the quoted property companies that converted to UK REITs on 1 January 2007: SEGRO, Great Portland Estates, Primary Health Properties, and Land Securities Group (on certain aspects of its REIT conversion, including restructuring work).
As a result we have an unrivalled level of REIT experience, far exceeding any other law firm and further cementing our reputation as a leader in the real estate industry. Multi-disciplinary teams of real estate, tax and corporate partners acted on the REIT conversions. Chris Luck leads on our REIT work and took a leading role in each of the conversions.
Our latest alerts, briefings & reports
Nabarro briefings and reports
Changes to the UK REIT regime
The Finance Act 2012 has implemented a number of changes to the REIT regime. View full briefing
The Changing Shape of Real Estate Funds
Investors in real estate funds are motivated by the prospect of enhanced returns on their investment, often as a result of being able to access expert management skills and new markets and sectors. In the aftermath of the financial crisis and downturn in real estate markets, investors want to reshape and strengthen the industry. View full briefing
The UK-REIT regime is set out in Part 4 of the Finance Act 2006 (as updated by the Finance Act 2007) and is supplemented by a number of regulations. It is also supported by guidance published by HM Revenue &
Customs (HMRC). The regime for UK-REITs has been operational since 1 January 2007 and 18 listed UK property
companies, including many of the largest property companies in the industry, have thus far converted to or listed with UK-REIT status. Entry to the regime is by notice to HMRC and does not necessitate a new form of corporate vehicle. View full briefing