Number of new UK REITs jumps by 61%

The number of new REITs in the UK has increased by 61% in the past year to 45, according to accountancy firm Lubbock Fine. The number is up from 28 new listings a year earlier. The total number of REITs in the UK now stands at 157, a 29% increase on the 122 last year. Lubbock Fine said rule changes had made it far easier to establish a REIT in the UK. Chief among these changes is the removal of the requirement for a REIT to be listed on a stock market. Another recent change that has encouraged the creation of more REITs is a relaxation of rules for overseas investment, where many more overseas companies can now be considered “REIT-equivalent”. These new rules have enabled more overseas funds to convert to REITs.   Neil Williams, partner at Lubbock Fine, said: “We have seen a significant increase in the number of REITs in the past year. The removal of the listing requirement is already producing huge cost savings. “A lot of new money is being injected into REITs – while at the same time a lot of existing commercial property investment is being converted into REIT structures. Many of the new REITs are existing investment funds converting and using the tax advantages to pass on more value to investors and increase the rate of return.” Williams added: “More and more funds are testing the waters with the new REITs regime. Now that investors see the benefits, the number of REITs is growing rapidly. This trend will likely continue into next year.” Photo © Image Source/REX/Shutterstock