Key details of German REITs, set for launch in 2007, have yet to be set, according to Kempen & Co.
Following a meeting with Germany’s legislators, the analyst described the draft legislation as “70% ready”. The regulations will require 75% of a G-REIT’s assets to be invested in property and 75% of their income to be derived from rents or property sales. The exit tax has been cut to 20%, from the 39% corporate tax companies pay. The draft does not state whether the required ratio of earnings to be returned to shareholders will be 90% or 95%, said Kempen. Gearing will be restricted to 60%.
