An informal consultation is announced with a view to reducing barriers to entry and investment for existing and future REITs. Legislation is proposed to be included by Finance Bill 2012.
Few details are provided but overall this looks to be good news for the sector. Of particular interest are:
1. the suggestion that institutional investors might establish REITs;
2. greater flexibility regarding cash assets;
3. relaxation of the listing requirement , which might perhaps allow private REITs to be established; and
4. abolition of the entry/conversion charge.
Reference is also made to technical changes to the legislation. I hope that the opportunity will be taken to get rid of a number of technical requirements which serve no useful purpose. For example, the three properties rule and the single property value rule.
The consultation is awaited with interest.