Developer votes today on whether to switch its property holdings into the tax-free vehicle, real estate investment trusts.
Developer and property firm Hammerson is set to become a Real Estate Investment Trust (REIT) from next January following a vote at today's AGM.
The Park Lane-based group will today vote on whether to switch its property holdings into the tax-free vehicle introduced by chancellor Gordon Brown in this year's Budget.
REITs are expected to increase scrutiny on construction costs for new buildings that are intended to become part of them. They may also lead to greater specialisation of developers as they aim to feed buildings into REITs.
John Nelson, Hammerson chairman, will tell shareholders: "We believe that the introduction of REITs will provide additional opportunities to grow the business over the next few years and enable Hammerson to continue to play a leading role in the transformation of our towns and cities. I believe it will also add impetus to the regeneration of the UK's infrastructure at the same time providing an attractive medium for investors."
Other major developers such as British Land, Land Securities and Brixton are also expected to become REITs next year.