Land Securities has slammed Treasury plans to restrict shareholdings in proposed new real estate investment trusts (Reits) to less than 10% for any one group.
Brixton is worried the proposal could leave companies open to manipulation by hostile investors.
Property firms are also worried about plans to limit the gearing of the vehicles by imposing minimum income cover restrictions.
The British Property Federation (BPF) is due to meet a group of Britain’s biggest property companies today to discuss last-minute changes to the proposed legislation.
Patience Wheatcroft, in The Times, says the BPF should not give up in its fight to secure a good deal for the property industry at the last hurdle.
She says investors should be offered the chance to invest in a tax-efficient property vehicle.
References: The Times 05/01/06 page 45 (Commentary), page 46 (Need to know), page 53
