The popularity of REITs is on the rise as investors move towards onshore structures amid a changing tax environment. Contrary to common perception, REITS can deliver cost savings compared to managing offshore structures and listing on a foreign stock exchange (e.g. Channel Islands) can significantly reduce running costs.
The UK Real Estate Investment Trust (REIT) legislation came into effect in January 2007. A decade later there has been a rush of new entrants to the market, many externally managed by fund managers. In this article we look at common misconceptions about what a REIT is, how the market has evolved and why we are seeing a flurry of new launches.