The British Property Federation is to establish a task force to ensure that the successful campaign for a UK REIT does not lose momentum. The BPF wants to ensure that the property industry continues to pull together to maximise the opportunities posed by REITs.
Although legislation that will allow the first UK REIT to be created from January 2007 is expected to be passed in this month, the BPFsays it believes it is essential for the industry to take a co-coordinated and well planned approach to campaigning. This should include unlisted REITs, an UPREIT type structure and a whole range of detailed modifications, many of which will only become apparent as the REIT regime develops.
The BPF has, therefore, taken the initiative of setting up a task force, which will function as a principal committee of the Federation under the chairmanship of outgoing BPF President, Ian Coull, Chief Executive of Slough Estates. The task force will also be able to embrace members from other organisations such as the IPF, and RICS so as to ensure that the benefits of a pan-industry approach can continue to be realised.
As well as legislative and regulatory change, the committee will monitor cross- border issues that could affect investment flows. It will take an overview of investor outreach activity, with a view to supporting whatever long term capability is needed in this area, and support lobbying efforts aimed at securing a level playing field for other investment vehicles, such as Authorised Investment Funds, so as to ensure a fair approach for all and the widest possible choice for investors.
Overall, the committee will also provide a channel for the many different participants in the UK’s REIT industry to identify issues, problems, challenges and opportunities which will benefit from a collective approach. It is aimed at ensuring that UK REITs are a success and achieve major benefits for the UK economy, for end users, investors and industry players alike.
“Getting REITs for the UK has been a great achievement,” says incoming BPF President Nick Ritblat, who was one of the principal players in the property industry’s REIT’s campaign. “But this is only the beginning and the industry needs to continue to work hard to ensure that we take full advantage of this. We look forward to continuing our partnership with the IPF and RICS so that the industry can benefit from the combined strength of its various representative organisations.”