Brixton’s shareholders have voted in favour of the company becoming a REIT in the new year

At an extraordinary general meeting held earlier today, shareholders in the UK’s sixth-biggest quoted property company passed a resolution amending its articles of association in preparation for its conversion on 2 January 2007.

On entering the REIT regime, UK resident shareholders in Brixton will no longer pay UK direct tax on the profits and gains from its qualifying property rental businesses.

The move will also eliminate £166m of deferred tax liability on its portfolio.

Brixton will pay an entry charge of £38.3m, based on the market value of the Brixton Group’s property assets as at 30 June 2006.