'Semi pan-European REIT' likely within next ten years

The chances that a pan-European real estate investment trust (REIT) will emerge in the next five to ten years are very slim, according to Michael MacBrien, head of the European Property Federation. 'What I do see evolving is a semi pan-European REIT with a select number of EU states taking part.'

MacBrien was speaking Wednesday at a session devoted to REITs at the annual conference of the European section of the Urban Land Institute in Paris. He pointed out that the EU now has 27 members and that there was 'no way' that some of them would renounce their sovereignty on issues such as tax policy. 'There are countries with tremendous sovereignty problems which will not be pressured into a uniform REIT law.'

Nevertheless, REITs are here to stay, according to Ian Hawksworth, executive director of Liberty International. 'Every day we see lots of new investors entering the market. REITs are a very useful mechanism. They take away a lot of structural inefficiencies.'