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EPRA/Nabarro Nathanson Reception
- London 2007
A partner of the firm since 1988, Chris advises
quoted and unquoted real estate companies as
well as funds and joint ventures.
Chris is head of the firm’s REITs Group and has
been closely involved in the development of
UK-REITs including acting on REIT conversions.
Chris’s experience also includes significant
international and cross-border transactions.
He is also a member of the firm’s European
Group.
’ Contact
Email: c.luck@nabarro.com
epra news - april 2007 - www.epra.com
By Christopher Luck
The panellists and hosts in good spirits before the discussion got underway.
Chris Luck
Partner,
Corporate Real Estate
In January the EPRA hosted its London reception at the offices of Nabarro Nathanson. The
reception included a panel session which was chaired by Mark Cooper, editor of EuroProperty.
The panellists were Francis Salway - Chief Executive of the Land Securities, Mike Slade -
Managing Director Helical Bar, Peter Hicks – Head of IFA Channel International and Robert
Fowlds – Managing Director of JP Morgan Cazenove.
The panel discussed the launch of the UK
Real Estate Investment Trust (UK - REIT).
Nine UK publicly listed property companies
converted to UK-REITs on 1 January 2007.
These were Great Portland Estates, Land
Securities, Hammerson, Primary Health
Properties, Slough Estates, Brixton, Liberty
International, British Land and Workspace.
Details of the companies which converted
are illustrated in Figure.1. These conversions
resulted in UK REITs comprising 70% of the
FTSE EPRA/NAREIT UK Index. As a point of
reference, figure.2 highlights the REIT v Non-
REIT breakdown amongst the countries in
the FTSE EPRA/NAREIT Global Real Estate
Index. On a global basis, REITs comprise
approximately 70% of the free float market
capitalisation of the index.
The UK-REIT
By way of general introduction a UK-REIT
includes the following features:
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•
•
•
•
the regime to is open to companies
resident in the UK for tax purposes and
which are listed on a recognised stock
exchange;
companies entering the regime do not
pay any UK corporation tax on qualifying
property rental income or any chargeable
gains on a sale of qualifying property;
there is a requirement to distribute at
least 90 per cent of the profits from its
property rental business to investors;
entry to the regime is effected by a notice
to HM Revenue and Customs;
there is an entry charge which the company
converting is required to pay of 2