Analysis

UK Real Estate Investment Trusts

The UK Real Estate Investment Trust (“REIT”) regime launched on 1 January 2007, and immediately saw a number of the UK’s largest listed property companies convert to REITs. Since then, the regime has continued to evolve. Developments to the REIT regime over recent years have increased the attractiveness and accessibility of the regime to a wider pool of property investors and providers of capital.

As at October 2018, there are c.75 UK REITs. This includes publically traded REITs (generally listed or traded on the London Stock Exchange), as well as institutionally owned REITs (generally listed on The International Stock Exchange).

REIT status affords a number of commercial and tax benefits, including:

  • Access to the global REIT “brand”
  • Attractors of international capital
  • A liquid and publicly available source of property investment
  • Improved after-tax returns for shareholders
  • The ability to make commercial decisions in a tax-exempt environment based on the commercial performance of individual assets

Deloitte has been at the forefront of the UK REIT regime since its inception, working alongside Government, industry bodies and clients to shape the REIT regime. The Deloitte REIT practice has c.50 REITs as clients.

Our REITs team has been involved in most significant REIT conversions/launches in the UK and has been heavily involved in many key REIT transactions and M&A activity in the REIT sector, including:

  • Launches of multiple new public REITs
  • Multiple conversions of existing onshore and offshore structures into REITs
  • Launches of multiple institutional REITs
  • The only two takeovers of one REIT by another REIT
  • The largest acquisition of part of a REIT by a non-REIT
  • The largest joint ventures between REITs and non-REITs of different kinds

We offer a comprehensive range of specialist services to REITs and those looking to launch a new REIT or convert an existing structure to REIT status, including:

  • REIT tax advisory services, including on REIT launch / conversion and subsequent acquisitions, disposals and refinancings.
  • REIT tax compliance
  • Reporting accountant services
  • Audit and assurance services
Deloitte REITs
Did you find this useful?