Schroder Real Estate to move onshore and convert to REIT

The board of the Schroder Real Estate investment trust is proposing to move the trust onshore and convert it to a REIT.

In the circular sent to shareholders, the trust’s board unanimously recommended converting to a REIT as its taxation regime is more efficient. The £320m trust, which was launched in July 2004, is currently domiciled offshore. However, the board said the company’s income tax bills are set to rise imminently, after an agreement with HMRC expired. The trust’s subsidiary property owning companies are liable for 20% income tax. REITs do not pay income tax or corporation tax on their profits and are designed for companies that directly own and operate their property. The system a...