Arthur Cox Advises on First Real Estate Investment Trust (REIT) in Ireland

02-09-2013

September 2013: Arthur Cox has advised on the establishment, listing and the offering of securities of Green REIT plc, a recently incorporated Irish property investment company. This is the first Real Estate Investment Trust (REIT) listed in Ireland.

Introduced in Ireland’s Finance Act 2013, REITs offer a modern collective investment ownership structure for Irish and international investors in the Irish and overseas property markets. Provided that various conditions as to diversification, leverage restrictions and income distribution are met, REITs are exempt from Irish corporation tax on income and gains arising from property rental business.

Raising almost €310 million by a placing to institutional investors when it launched, Green REIT plc, which will be managed by Green Property REIT Ventures Limited, is listed on the Official Lists of the Irish Stock Exchange and the UK Listing Authority. The REIT’s Ordinary Shares are traded on the main markets for listed securities of the Irish Stock Exchange and the London Stock Exchange.

Commenting on the establishment of the REIT, Maura McLaughlin, Partner, Arthur Cox said: “The introduction of Irish REIT legislation is a positive and timely development as investors look for new ways to access and structure real estate investment opportunities. While REITs are an internationally recognised vehicle to attract foreign capital, they may also be looked at by banks and other financial institutions as potential deleveraging structures rather than straight portfolio sales. They are also viewed as having the potential to attract long-term capital investment into the commercial property sector in Ireland.”

More information on REITs can be found in the Arthur Cox Tax Group briefing Property Investment Structures in Ireland.