THE British Property Federation has welcomed a new survey of real estate investment trust (Reit) regimes which highlights their continued expansion into new areas such as Luxembourg and India despite economic conditions affecting property investment markets.
A Reit is a property company that generates 75% of its income as rental from property assets such as offices, shops or warehouses.
It pays no corporation tax on its activities but must pay at least 90% of its taxable income to its shareholders. The new global survey by the European Public Real Estate Association (EPRA) says Reits will be best-placed to attract capital flows as markets begin to recover. The survey backs up recent research in the UK from Reita which reported that they expected recovery to take place “in the listed sector first”.
