Europe’s real estate revolution
It is an age-old question: which is more important – beer or rent? The news that one of the UK’s pub groups is actively examining the merits of conversion to a Reit throws the potential of these vehicles wide open. But the concept faces significant hurdles in that it would require the UK government to accept that beer income is equivalent to rental income. Reit legislation dictates that 75% of taxable income must be derived from rental income.
In its interim results at the end of May, Enterprise Inns revealed that it was considering the...
