Real Estate Investment Trusts: artificial
restructuring
The measure
In his 2008 Pre-Budget Report, the Chancellor proposed measures to ensure that the Real Estate Investment Trust (REIT) regime was only available, as originally intended, to legitimate property investment businesses with third party tenants. The Budget announced that group's will be restricted from restructuring within their group's to enable them to meet the REIT conditions and tests.
There is also an amendment of the legislation which will mean that pub groups with tied premises can be included in the regime more easily.
Who will be affected?
Property rich businesses who were considering conversion to REIT status.
When?
Legislation will be introduced with effect from 22 April 2009
This is not an unexpected change and amendment will make it easier for tenanted pub groups to become REITs, but will make it impossible for the managed pub sector.
