Degi, the investment arm of insurer Allianz, rates 10 German property companies and eight private equity investors as potential candidates for tax-investment real estate investment trusts (REITs). So far, no REITs at all have been launched in Germany since the introduction of the legislation at end-March.

Degi, the investment arm of insurer Allianz, rates 10 German property companies and eight private equity investors as potential candidates for tax-investment real estate investment trusts (REITs). So far, no REITs at all have been launched in Germany since the introduction of the legislation at end-March.

Researchers at Degi based their rating on a survey for its 2007 'New Perspectives' market report on Germany. Degi names the following listed properties companies as possible converters: Alstria Office, Ariston Real Estate, Burgerliches Brauhaus Immobilien, Deutsche Euroshop, DIC Asset, German Retail REIT, Hamborner, IVG Immobilien, Polis and TAG Tegernsee Immobilien. A further eight private equity companies that Degi sees as candidates to set up a G-REIT are: Babcock & Brown, Blackstone, Dawnay Day Group, Fortress/Eurocastle, Ixis Capital, Morgan Stanley, Oaktree and Whitehall.

Degi said it also expects providers of property funds such as KGAL, Hannover Leasing and CLI, banks, insurance companies and industrial concerns to establish REITs. The number of REITs would be considerably higher if the exclusion of residential property was revised soon in line with the wishes of many market players. 'On the whole, it is not unrealistic to expect that within the next 12 months, 20 (without residential properties) and 30 (including residential properties) REITs could find their way onto the stock market,' the report concludes.

Meanwhile, researchers at property advisor Jones Lang LaSalle have speculated that five to 10 listed German property companies will likely become G-REITs. JLL did not name the companies it thought might convert.