New Frontier converts to REIT status
2 October 2015
New Frontier Properties elected to enter into the UK Real Estate Investment Trust (REIT) regime with effect from 21 October 2015.
The company simultaneously transferred its management and control from Mauritius to the UK.
Shareholders were advised that it was to the commercial advantage of the company and conducive to the growth of its business to take this action.
The UK REIT regime has become a globally recognised platform for investment in UK property assets, providing exemption from corporation and capital gains tax on property rental activities. It also provides security of income with 90% of aggregate net property rental income required to be distributed to shareholders.
New Frontier is seeking dominant shopping centre assets and has plans to grow its UK portfolio to 1 billion within 18 months.
Mike Riley, CEO of New Frontier, said: We believe retail is healthy in the UK, with 6% year-on-year sales growth in September. GDP growth is also robust and we will continue to create a strong portfolio.