Shaftesbury and McKay Securities have become the latest UK-listed property companies to announce they are to convert to tax-efficient real estate investment trust (REIT) status. Nine UK property companies, including giants British Land and Land Securities, converted on 1 January. Shaftesbury and McKay Securities are to follow suit on 1 April.

Shaftesbury and McKay Securities have become the latest UK-listed property companies to announce they are to convert to tax-efficient real estate investment trust (REIT) status. Nine UK property companies, including giants British Land and Land Securities, converted on 1 January. Shaftesbury and McKay Securities are to follow suit on 1 April.

The board of London-based Shaftesbury said shareholders will be asked to support the necessary changes to the company's articles of association to facilitate the conversion to a REIT at an extraordinary general meeting on 19 March. Shaftesbury's principal activity is investing in existing commercial properties in London and boosting returns by refurbishment and active management. Its main projects include Carnaby Village, Seven Dials and Chinatown.

The Carnaby Village portfolio comprises 133 shops, 36 restaurants, clubs, cafes and bars, 21,000 m2 of office space and 52 flats. Seven Dials projects comprises 101 shops, 53 restaurants, bars and clubs, 11,000 m2 of offices and 100 flats. Chinatown comprise 55 restaurants, 53 shops, 4,500 m2 of offices and 71 residential units.

On 5 February, McKay Securities, a property company based in Reading in England, announced it is also to convert to REIT status on 1 April. The company was formed by G.F. (Peter) McKay in 1946 and was floated on the London Stock Exchange in 1959. Today it operates as a property investment company that specialises in the development and refurbishment of commercial buildings, mainly in the southeast of England.

Reita, the lobby group and information centre for UK REITs, expects five other property companies to convert to REIT status during the first half of 2007.