REIT Real Estate Investment Trusts - your comprehensive UK guide

News

22nd May 2006

AIM Market not for REITs?

It has emerged that AIM quoted Companies quoted will not be eligible to for REIT status. This is, hardly surprisingly, angered many companies and not just those already on AIM. Reits companies cannot choose to float on AIM either due to Government concerns that the lack of regulation provides too much risk for investors.

There are over 60 property companies on AIM and, in the first quarter of 2006 alone, they raised over £750m. This represents a considerable loss of opportunity for potential REIT company investors.

For the potential investor, whilst this move reduces choice, it should mean that the increased regulation of the main market will provide a more secure investment.