REITs "very positive" for property market
Posted: 31 Mar 2006 15:00:05 GMT
Gordon Brown's announcement on real estate investment trusts (REITs) last week has been hailed as a positive move by a leading property group.
Liberty International, which runs the Arndale centre in Manchester and Cribbs Causeway shopping complex in Bristol, has said that the REITs announcement has been a welcome one.
The firm said in a statement that it believes it will be an "attractive REIT in the light of its size and specialisation".
Gordon Brown announced in his budget that REITs will be exempt from the 30 per cent corporation tax and Liberty has said it expects to easily outstrip the proposed interest cover test, which the chancellor set at 1.25 times.
The Association of Investment Trust Companies estimates that 40 per cent of sophisticated investors are considering an investment in REITs when they begin trading on the stock market from January 1st.