Redefine International Progresses With REIT Conversion

By Editorial 12 November, 2013

Property investment company Redefine International has announced that its board has agreed on the terms for the internalization of its management function, bringing it closer to its planned conversion to UK-REIT status.

The company is expected to complete its conversion to UK-REIT status on December 03, 2013, subject to approval from shareholders and the South African Reserve Bank.

Mike Watters, CEO of Redefine International Group, commented: "We're pleased to have reached another important milestone in our stated objective of simplifying the corporate structure. Our proposed entry to the UK-REIT regime will provide further tax efficiencies to support our ongoing focus on income generation."

He went on to say: "The advantages afforded by the recently enacted UK-REIT legislation, in particular the removal of the two percent gross asset conversion charge, provide an efficient method for Redefine International to convert to a transparent and tax efficient regime."

In converting to a UK-REIT, Redefine International will gain access to a broader range of investors as the REIT regime is favored by real estate investors around the world.

UK-REIT status will also give members of the group exemption from UK direct tax on profits and gains from qualifying property rental businesses.

However, before it can be eligible for UK-REIT status, Redefine International needs to become UK tax resident. The company intends to change its tax residency accordingly, but such a move is dependent on shareholder approval.

Tags: Tax | Investment | Business | Real-estate Investment | Real-estate | Investment Funds | United Kingdom | Legislation | Expats |


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