The Spanish government unveiled a package of measures late on Wednesday to help the country's property companies survive the double threat of the economic downturn and the crisis in the construction and property sectors.
The Spanish government unveiled a package of measures late on Wednesday to help the country's property companies survive the double threat of the economic downturn and the crisis in the construction and property sectors.
The Spanish premier Jose Luis Rodriguez Zapatero announced the introduction of quoted real estate investment vehicles in attempt to attract capital and increase liquidity in the sector. The new vehicles, which are generally known as REITs, will enjoy tax breaks in exchange for the distribution of 90% of profits to shareholders. The Spanish vehicles will be known as SCIMI - Sociedades Cotizadas de Inversión en el Mercado Inmobiliario.
Zapatero also told the parliament he will introduce a EUR 3bn credit line to boost development across the sector. Under the permier's plan, developers who commit themselves to rent out unsold new homes would qualify for the public debt facility.
