Europe Real estate investment trust

1 europe

1.1 belgium
1.2 bulgaria
1.3 finland
1.4 france
1.5 germany
1.6 ireland
1.7 united kingdom

europe

over past few years new reit regimes have been introduced in europe meet growing demand investors tax efficient real estate investments vehicles, existing reit regime in europe have been improved. in europe, top-performing reit , largest publicly traded real estate company unibail-rodamco se.

belgium

belgian reits introduced bernheim comofi (now ag real estate) in 1995 constitution of befimmo. others reits in belgium include cofinimmo , ascensio.

bulgaria

reits introduced in bulgaria in 2004 special purpose investment companies act. pass-through entities corporate income tax purposes (i.e., not subject corporate income tax), subject numerous restrictions.

finland

finnish reits established in 2010, when tax exemption law (laki eräiden asuntojen vuokraustoimintaa harjoittavien osakeyhtiöiden verohuojennuksesta, 299/2009) passed finnish parliament. law on real estate funds (kiinteistörahastolaki, 1173/1997) enables existence of tax efficient residential reits.

qualifications

reits have established public listed company (julkinen osakeyhtiö, oyj) specific purpose. when reit established minimum equity 5m€ , has distributed on 5 separate investors.
minimum holding period: 5 years.
at least 80% of assets have invested in residential real-estate.
at least 80% of reit s gross revenues must come residential rental income.
at least 90% of reit s taxable income, excluding unrealised capital gains, has distributed shareholders through dividends.
the corporation income-tax-exempt, shareholders have pay individual income tax on dividends.
largest individual shareholder may own less 10% of company shares (max. 30% till end of 2013).

at moment orava residential reit reit in finland.

france

the french acronym reit siic or scpi (which 2 different kind of real estate trust). in france, unibail-rodamco largest siic. gecina second largest publicly traded property company in france, third highest asset value among european reits.

germany

germany planning introduce german reits (short, g-reits) in order create new type of real estate investment vehicle. government fears failing introduce reits in germany result in significant loss of investment capital other countries. nonetheless there still political resistance these plans, social democratic party).

a law concerning g-reits enacted 1 june 2007, , retroactive 1 january 2007:

reits have established corporation reit-ag or reit-aktiengesellschaft .
at least 75% of assets have invested in real-estate.
at least 75% of g-reit s gross revenues must real-estate related.
at least 90% of reit s taxable income has distributed shareholders through dividends.
the corporation income-tax-exempt, shareholders have pay individual income tax on dividends.
some restrictions apply on establishing residential reits

the german public real estate sector accounts 0.21% of total global reit market capitalization. 3 out of 4 g-reits represented in epra index, index managed european public real estate association (epra).

ireland

the 2013 finance act contained provisions creating reit structure in ireland.

united kingdom

the legislation laying out rules reits in united kingdom enacted in finance act 2006 (now see corporation tax act 2010 sections 518 609) , came effect in january 2007 when 9 uk property companies converted reit status, including 5 ftse 100 members @ time: british land, hammerson, land securities, liberty international , slough estates (now known segro ). other 4 companies brixton (now known segro ), great portland estates, primary health properties , workspace group.

british reits have distribute 90% of income investors. must close-ended investment trust , uk resident , publicly listed on stock exchange recognised financial services authority. epra in brussels each year publishes breakdown of uk reit structure requirements.

to support introduction of reits in uk, reits , quoted property group created several commercial property , financial services companies. other key bodies involved london stock exchange british property federation , reita. reita campaign launched on 16 august 2006 reits , quoted property group, in order provide source of information on reits, quoted property , related investments funds. reita s aim raise awareness , understanding of reits , investment in quoted property companies. through portal www.reita.org, providing knowledge, education , tools financial advisers , investors.

doug naismith, managing director of european personal investments fidelity international, said: existing markets expand , reit-like structures introduced in more countries, expect see overall market grow ten percent per annum on next 5 years, taking market $1 trillion 2010.

the finance act 2012 brought 5 main changes reit regime in uk, being

boyd carson of sapphire capital partners llp commented important of these advantages ability reits listed on aim , abolition of 2% entry charge regime significant step forward.