Billionaire financier George Soros is backing the launch of a new tax-transparent quoted vehicle in France.
La Societe de la Tour Eiffel, which plans to invest ¤1bn in French commercial property over the next three years, is the first example of private investors seeking SIIC status to take advantage of its tax transparency.
It adds weight to the argument that the introduction of SIICs will lead to the growth of the quoted sector in France and that a similar vehicle would boost the UK sector.
The majority of French-listed property companies, such as Unibail and Sophia, have already converted to SIICs. Listed pan-European players Rodamco Europe, Wereldhave and Hammerson have also sought SIIC status for all or part of their French portfolios.
STE chairman and chief executive Mark Inch said the initial aim was to build up the company’s assets with the aid of a small group of investors – including Soros – who hold 82% of STE’s equity, the remaining 18% being in free float.
Meanwhile, in Italy, listed companies have started a dialogue with the Treasury on the merits of introducing an Italian REIT structure. The Italian government introduced favourable tax legislation for property funds last year, but these attracted little institutional interest.
Merrill Lynch analyst Bernd Stahli said: “We think a REIT structure would not only create institutional interest and help to facilitate a wider transfer of assets out of the corporate sector and the government, but could even result in a higher tax take on the distribution of its funds.
“We think especially the government should be interested in having an alternative way
to offload some of its property.”
References: EGi News 01/06/04
