Reits get ready for lift-off

Newly established Reits will have a year in which to meet the income and asset test which should mean more investment cash for a greater number of property companies, improved diversity and a healthy level of competition

On the eve of this month's UK market introduction of Real Estate Investment Trusts (Reits), the Chancellor announced that newly established Reits will have one year in which to meet the 75% income and asset test. In the legislation as it was previously set out, new Reits would have been subject to an immediate requirement to derive at least 75% of their profits from property rental and to have 75% of their assets in the property rental business. With this extra grace period providing a little extra space for new Reits to grow to meet the requirements, will we see a whole new raft of compani...