Warner Estate Holdings PLC confirms that it has taken the necessary steps for the company, its subsidiaries and the Agora Shopping Centres and Radial Distribution joint ventures (the 'Warner Estate Group') to convert to a Real Estate Investment Trust ('REIT') on 1 April 2007.
This conversion is effected by way of a notification letter to HM Revenue & Customs and will result in the payment of a conversion charge of 2% of the value of the Warner Estate Group's qualifying property assets.
In the case of Agora Shopping Centres and Radial Distribution, its joint ventures with Bank of Scotland, Warner Estate will be entitled to its share of distributable rental income free from any taxation liability and will also receive the proceeds of any gain on the disposal of any property assets without deduction of corporation tax. Bank of Scotland will be entitled to its share of distributable income and gains after taxation.
The precise amount of the conversion charge will be calculated once the Warner Estate Group's independent open market valuation as at 31 March 2007 has been completed and will be included in the announcement of the Company's results for the financial year to 31 March 2007 expected in June 2007.
Commenting on the conversion, Philip Warner, Chairman of Warner Estate, said: "We are delighted to be in a position to convert to REIT status on 1 April 2007. This is an exciting development for the Company which the Directors believe will benefit Shareholders."
Source: Warner Estate