Europe’s REIT community welcomed another constituent this afternoon after the German Bundesrat approved plans to launch the G-REIT.
A week after the Bundestag formally gave the G-REIT initiative the Green light, the German equivalent of the House of Lords has endorsed the creation of a tax-efficient real estate investment vehicle in Germany in a bid to boost the domestic quoted property sector.
The bill will be implemented retrospectively from 1 January. Like their UK counterparts, G- REITs will be required to list on the stock market, to maintain a permanent free float of shares and will exclude German residential property.
Under terms of the bill, the funds must distribute as dividends at least 90% of their profits and must generate at least 75% of their income from real estate investments. In addition, 75% of their assets must be invested in property.