Town Centre Securities has become the 17th UK property company to convert to a tax-friendly real estate investment trust (REIT) in the UK. The shareholders of the Leeds-based company approved new articles of association at an Extraordinary General Meeting on 1 October 2007 and HM Customs and Revenue accepted the conversion the following day.
Town Centre Securities has become the 17th UK property company to convert to a tax-friendly real estate investment trust (REIT) in the UK. The shareholders of the Leeds-based company approved new articles of association at an Extraordinary General Meeting on 1 October 2007 and HM Customs and Revenue accepted the conversion the following day.
In September, the company explained REIT status means it will be exempt from corporation tax liability on profit from property rental and property disposals. The deferred tax liability on revaluation surpluses, estimated at 30 June 2007 to be £65.9 mln (EUR 95 mln), will be extinguished. The company will pay a charge on conversion based on 2% of the value of its tax exempt property assets at the date of entry.
Town Centre Securities plc floated on the London Stock Exchange in September 1960 now has a property portfolio in excess of £450 mln (EUR 648 mln).