Redefine International, the Johannesburg and London-listed property investor, has confirmed it is moving forward with its plans to convert to a tax-transparent real estate investment trust in the UK.
Redefine International, the Johannesburg and London-listed property investor, has confirmed it is moving forward with its plans to convert to a tax-transparent real estate investment trust in the UK.
To qualify for conversion to a REIT, Redefine has to acquire its external manager Redefine International Fund Managers Limited, a move approved by the company's board on Wednesday.
The company's shareholders will be asked to vote on the fund manager takeover and other changes, including one to make Refine International a UK tax resident, to enable conversion to a UK REIT.
If the proposals are backed at the shareholders' meeting on 29 November, Redefine's board intends to switch to UK REIT status from 3 December 2013. Michael Watters will be CEO, with Andrew Rowell acting as chief financial officer.
Redefine International's investment portfolio is geographically diversified across the UK, Europe and Australia with a focus on the retail, commercial and hotel sectors. The portfolio is independently valued in excess of £1 bn (€1.2 bn).
International law firm Pinsent Masons has advised Redefine International on the proposed conversion and on recent acquisitions.
Howard Gill, partner at Pinsent Masons, commented: 'Recently enacted legislation, in particular the removal of the two percent gross asset conversion charge, makes this an excellent time for listed property funds such as Redefine International to make the move to the transparent and tax-efficient UK-REIT regime.
'Redefine International’s move to become a UK REIT underlines the advantages that the tax-advantageous regime can bring and highlights the possibilities for further companies in the sector to change status. This deal follows shortly after our advising of Redefine on its dual listing in Johannesburg, which completed in late October.'
