UK REITS: The draft legislation

The Society represents a considerable number of private client and property lawyers practising in Central London. Member firms include those undertaking mergers and acquisitions work as well as those specialising in commercial conveyancing as well and leading private client firms dealing (inter alia) with landed estates and leading charitable and similar institutions.
This Committee will confine its observations to the administrative rather than policy aspects of the proposals.

1. Presumed objective

It seems that the Government's objective is to provide an improved means for retail investors to obtain a stake in first-class property managed professionally and with a reasonable spread of investment risk.
To this end it has been thought appropriate to limit:

(a) the stake a single investor can hold in each REIT;
(b) the amount of gearing available;
(c) the size of the largest investment; and
(d) the scope and extent of related activities...