The British Land Company
Stephen Hester, Chief Executive Officer
British Land, which has £20.4 billion ($39.93 billion U.S.) in assets under management, has 55 percent of its portfolio in out of town U.K. shopping malls, and the remainder in London office space. The company has been one of the major beneficiaries from the introduction of the U.K. REITs legislation, with an estimated premium of approximately £1.3 billion ($2.54 billion U.S.) in saved tax revenues. "We were pushing the government for REIT legislation for a number of years due to the imbalance between those suffering from tax penalties and those not," says Graham Roberts, finance director at British Land. "However, we are pleased with the new regime, which should allow us to shift from the previous approach to a more active management of assets."
www.britishland.com; LSE: BLND.L

Brixton PLC
Tim Wheeler, Chief Executive Officer
Brixton owns or manages around 18 million square feet of industrial and warehouse space in the U.K. The portfolio is located predominantly in the South East of England with a particular focus on the West London markets. "We are delighted that the U.K. REIT legislation is here. It has probably taken 20 years of thought and three years of serious discussions," Wheeler says.
www.brixton.plc.uk; LSE: BXTN.L

Great Portland Estates PLC
Toby Courtauld, Chief Executive
Great Portland Estates is a central London property company with a market capitalization of around £1.4 billion ($2.74 billion U.S.), and will save around £100 million ($195 million U.S.) in saved tax revenues. "With the advent of REIT legislation, U.K. property shares have now opened to a new set of global investors which was not previously interested," Courtauld says. "We have already seen the number of U.S. investors in our company increase from 5 percent to 14 percent over the last few years and expect this to continue to grow."
www.gpe.co.uk; LSE: GPOR.L

Hammerson PLC
John Richards, Chief Executive Officer
Hammerson has its core markets in the U.K. and France, focused on retail and city center office space. "I think the government did a good job of implementing a solid workable regime," Richards says. "The legislation is good for us as it gives efficiency to our shareholders and the focus on the distribution of income will make property investment more like investment in a liquid portfolio."
www.hammerson.com; LSE: HMSO.L

Land Securities PLC
Francis Salway, Chief Executive
With a market capitalization of £10 billion ($19.6 billion U.S.), Land Securities is the largest property company in Europe and became the third largest REIT in the world following conversion this year. The company expects to benefit by around £700 million ($1.3 billion U.S.) in saved tax revenues through the new legislation. "There will be no particular change in strategy as the legislation is fully compatible with the business models of the new REITs," Salway says. "We do expect to see a little more focus on income generation and dividend yield."
www.landsecurities.co.uk; LSE: LAND.L

Liberty International PLC
David Fischel, Chief Executive
The company has property investments of £6.2 billion ($12.14 billion U.S.) through its two principal subsidiaries: Capital Shopping Centres and Capital & Counties. The company’s capital gains tax liability stood at around £630 million ($1.2 billion) last year, and its conversion charge was around £136 million ($266 million U.S.).
www.liberty-international.co.uk; LSE: Lll.L

Primary Health Properties PLC
Harry Hyman, Managing Director
Primary Health Properties is one of the largest providers of U.K. health facilities, with a £197.5 million ($386 million U.S.) property portfolio. "Our new status will enhance overall shareholder returns, augment the company’s growth prospects and significantly reduce the company’s corporate income taxes," Hyman says. "At PHP, we have always believed in maximum possible distribution of after tax profits to shareholders and achieving REIT status will allow us to further implement this policy."
www.phpgroup.co.uk; LSE: PHP.L

SEGRO PLC
Ian Coull, Chief Executive
Segro has operations in nine countries, and is listed on both the London and Paris Stock Exchanges, with total property assets of £5.6 billion ($10.96 billion U.S). The conversion to REIT will lead to the eradication of £460 million ($900.49 million U.S.) of contingent corporation tax minus a £73 million ($142.90 million U.S.) conversion charge. "We are going to see a bifurcation of the property industry in the U.K.," Coull says. "This could lead to some mergers and acquisitions activity, with those unable to convert selling to REITs."
www.segro.com; LSE: SLOU.L

Workspace Group PLC
Harry Platt, Chief Executive
Workspace Group PLC is one of the major providers of commercial property to let to small and medium sized enterprises in and around London, with around £964.3 million ($1.8 billion U.S.) in assets under management. "The REIT structure will enable shareholders to benefit from a significantly higher dividend stream, whilst not impairing the group’s strategic progress," Platt says.
www.workspacegroup.co.uk; LSE: WKP.L