What a R.E.I.T is?
Listed Companies of Investment in Real Estate Markets, are the result of adapting the European legislation applicable to the REIT (Real Estate Investment Trust) to the Spanish market, whose objective is the investment in real estate assets for rent. This investment can be done directly (through the REIT itself) or indirectly (through similar societies that meet certain requirements).
They were born in Spain with a clear objective: to stimulate the real estate sector while promoting in parallel the rental market.
The characteristics of the REITs are the following:
-They must be listed in regulated markets, both Spanish or European.
-The minimum share capital is EUR 5 million and they must have at least 50 shareholders.
-Financial and investment requirements are as follows:
-They must invest at least 80% of its assets in urban real estate, for rent, this having been adquired in full ownership and/or in shares in the capital of other REITs.
-80% of the income of the period, with exclusion of certain incomes, must proceed of the lease of estate and from dividends of the tenure of the previous shares.
-Requirements of mimimum permanence of the estate in lease or offered in lease (period of offering lower to a year) are imposed: 3 years for acquired property and 7 years for estate promoted by the company.
-They must have at least three homes in its asset that do not represent each one more than the 40% of the asset by the time of the acquisition.
-The external funding is limited to 70% of the asset.
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