Building a dynamic UK Reit structure

The introduction of Reits heralds a dynamic change for property as an asset class and offers new opportunities for investors. Their launch in the UK is the result of close consultation between industry and the Government, and this has resulted in a flexible framework which bodes well for the future

The introduction of UK Reits was first announced by Gordon Brown in December 2005 to address the problems previously associated with property investment due to a lack of liquidity and inaccessibility for small scale investors. Following constructive dialogue with the industry, the Government took on board concerns with the initial draft Reit proposals and set out changes for a more flexible Reit structure in the UK in March 2006. The UK Reit structure will be open to companies resident in the UK which are publicly listed on a recognised stock exchange. To qualify for Reit status, companies ...