Redefine International announced its intention to convert to UK-REIT status as part of its full results in October 2013, and has now set out proposals to this effect for shareholders’ consideration. The Board’s current intention is for Redefine to elect for UK-REIT status with effect from 3rd December 2013.
As part of the conversion, Redefine will internalise its management – by way of the acquisition of Redefine International Fund Managers Ltd – and become UK tax resident. After the 3rd December 2013, the Group will no longer pay UK direct tax on the profits and gains from their qualifying property rental businesses in the UK and elsewhere, providing certain conditions are met.
Michael Watters, of Redefine International Group, said: “Pinsent Masons’ advice, not just during this process but throughout our busy last 12 months, has been invaluable and has contributed greatly to our achieving this important milestone.
“Alongside its work on various asset acquisitions this year, including our 189 million euro German shopping centre portfolio, and £145 million capital raisings in the last 12 months, Pinsent Masons has shown itself to offer truly market-leading legal advice that has been of great benefit and value add to the Redefine International Group."
Howard Gill, Partner at Pinsent Masons who led the deal, comments: “Recently-enacted legislation, in particular the removal of the two percent gross asset conversion charge, makes this an excellent time for listed property funds such as Redefine International to make the move to the transparent and tax-efficient UK-REIT regime.
“Redefine International’s move to become a UK-REIT underlines the advantages that the tax-advantageous regime can bring and highlights the possibilities for further companies in the sector to change status. This deal follows shortly after our advising of Redefine on its dual listing in Johannesburg, which completed in late October.”
Howard Gill led the Pinsent Masons team that worked on the conversion, alongside senior associate Sarah Flinn and solicitors Emily Mort and Jade Ginger.