REITs

STEP TOWARD FINNISH REIT (Residential sector) WAS TAKEN 14th FEB. 2008

The Finnish Government approved a new housing policy 14th Feb.
It includes the introduction of a REIT-type structure for the rental housing sector.
The REIT-type structure should make financing of rental housing development projects cheaper, because it would mean that rental housing real estate companies will be subject to virtually zero taxation in the future.

The residential REIT regime will be processed during 2008. At the moment it is impossible to estimate when new legislation will be in force.

RAKLI will continue lobbying that REIT regime will include all property types (office, retail, residential, infrastructure and also forest and other land areas) .

For Further Infromation: Jaakko Leinonen, +358 44 305 3883

EU REIT

A coalition of the European real estate industry asks the Commission for an EU framework for real estate investment trusts - EU REIT would overcome obstacles to cross-border property investment and enhance market security and stability. A Maastricht University study released today highlights five main drivers for an EU framework.

A press release on the subject
An Executive summary of the study
The Full report of the Maastricht University study
Request for EU Real Estate Investment Trust (EU REIT) Legislation delivered by EPF

REITs in Finland, Scheme in progress

Real estate and fund legislation is mentioned in Government Programme:

"Steps will be taken to review the real estate or property fund legislation and revise the taxation of property funds organised as
limited companies to secure the international competitiveness of Finnish property funds in order, among other things, to encourage investments in the Finnish rental housing market." (Govermnert Programme, page 57)

See whole Government Programme of Prime Minister Matti Vanhanen´s second Cabinet 2007-2011.

A Step Forward Finnish REITs RAKLI as Major Lobbier (25th Jan. 2007).
See press release here

Government bill has been given to pariliament 18th August 2006. Draft legislation is under the process in parliament.

Summary of bill (October 2006)
Summary of bill (April 2006)

For further information please contact to Jaakko Leinonen (Chief adviser / RE investments) +358 44 305 3883