Hammerson has announced it has received shareholder-backing to become a UK REIT on 1 January 2007.
The company held an extraordinary general meeting this morning where shareholders voted in favour of the change in tax status.
Chairman John Nelson said: “Hammerson’s proposed conversion to a REIT is an exciting development for the company.
“Following the conversion payment of approximately £100m, Hammerson will be able to write back over £400m of deferred tax.
“We will then be in the unique position of having REIT status in the UK and SIIC status in France.
“As a consequence, Hammerson will be exempt from tax on property income and capital gains in both countries.
“I believe the introduction of the REITs in the UK will introduce new classes of investor to the real estate sector and increase liquidity and transparency in the market.”
References: EGi News 13/12/06
