REITs unlikely to come from Nama
NAMA is unlikely to feature prominently in the initial Real Estate Investment Trusts (REITs) established here, it has been claimed.
REITs are a tax efficient way of investing in real estate based on buying shares in multi-asset trusts rather than on investors buying individual properties.
Law firm Matheson said that while many expected the initial REITs would come from NAMA that is unlikely because the agency holds mostly property loans and mortgages rather than assets.
Cara O'Hagan, head of commercial property, said that REITs are a welcome development in the Irish market at a time when financial institutions control an overwhelming majority of prime commercial property here.
"While they will not be a panacea for the Irish property market, REITs are, however, a much needed addition to our investment landscape, providing a tax efficient vehicle for international investment in property," Ms O'Hagan said.