Trust industry welcomes increase in competition

property funds

The Government's plans to introduce a version of the US real estate investment trust has prompted concerns about the increase in competition to existing property funds. However, Sally White finds the sector is already one step ahead

A few nerves would be excusable in the face of - if market surveys are right - a whopping £35bn worth of new competition. This is a figure put on the potential for the Government's proposed version of real estate investment trusts, found in the US and elsewhere in the world, which will be known as property investment funds. And yet the investment trust industry seems remarkably calm ahead of the promised release of details in the Chancellor's November pre-budget briefing. Does this indicate a little too much sanguineness on the part of the trust management groups? As it happens, the trust...