British real estate giant Land Securities confirmed that it has elected real estate investment trust (REIT) status as of January 1. 'From today, we have become of the three largest REITs in the world and the UK's largest REIT by market capitalisation,' commented ceo Francis Salway in a statement issued on Monday.
British real estate giant Land Securities confirmed that it has elected real estate investment trust (REIT) status as of January 1. 'From today, we have become of the three largest REITs in the world and the UK's largest REIT by market capitalisation,' commented ceo Francis Salway in a statement issued on Monday.
The company said it was moving ahead with its plan to convert to a REIT after the UK's customs service, HM Customs and revenue, gave the green light to the application filed in late December.
The UK and Germany both introduced REIT regimes at the New Year, and Land Securities said it is now conducting the required valuation of its qualifying property assets to establish the precise amount of the 2% REIT conversion charge to be paid in July 2007.The company has provisionally estimated it will have to pay £300 mln (EUR 445 mln).
'The tax efficiencies afforded by this change in status will result in an enhanced future dividend and we are confident that Land Securities will be one of the UK real estate investment vehicles of choice for both UK and international investors,' Salway said.
Separately, the company announced non-executive chairman Peter Birch was stepping down from the board on January 1.
