Finnish REIT comes a step closer

Finland came a step closer to introducing its own legislation for real estate investment trusts (REITs), after the commerce committee of the Finnish parliament issued a positive report on Wednesday regarding the introduction of a Finnish REIT.

The report has the support of RAKLI, a lobby group for the Finnish real estate market, and KTI, a Finnish real estate research centre. Both parties told researchers at merchant bank Kempen & Co they perceive the statement as a positive sign for the Finnish REIT. However, REIT legislation is not expected to be formally placed on the government's agenda until after the general elections which are scheduled for mid-March.

The introduction of REITs in Finland could have a strong impact on all Finnish listed property companies, including Sponda and Citycon, Kempen & Co said.