Business
Proposed conversion of UK business to a REIT
Proposed conversion of UK business to a REIT.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 5763F\n Sirius Real Estate Limited\n 22 March 2022\n \n \n \n SIRIUS REAL ESTATE LIMITED\n (Incorporated in Guernsey)\n Company Number: 46442\n JSE Share Code: SRE\n \n LSE (GBP) Share Code: SRE\n \n \n LEI: 213800NURUF5W8QSK566\n \n ISIN Code: GG00B1W3VF54\n \n \n 22 March 2022\n \n \n Sirius Real Estate Limited\n \n \n (\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n \n \n \n \n Proposed conversion of UK business to a UK Real Estate Investment Trust (\"REIT\")\n Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, announces that it intends to convert its UK business to a UK Real Estate Investment Trust (\"REIT\") from 1 April 2022.\n The proposed REIT conversion follows the Company's UK acquisition of BizSpace in November 2021. By entering the UK REIT regime, the Company will no longer be subject to UK corporation tax on income or gains from its property rental business and will be required to pay 90% or more of its UK property rental business income to shareholders annually, as property income distributions (\"PIDS\"), which can be satisfied by both cash and SCRIP dividends.\n Certain classes of shareholder are eligible to receive gross PIDs however in general PIDs are paid to shareholders after the deduction of withholding tax at the basic rate of income tax (20%). Shareholders not resident in the UK may be entitled to claim a full or partial refund from HMRC where a treaty dividend rate applies.\n REIT conversion is not expected to affect the Company's current dividend policy of paying out 65% of annual Funds From Operations (\"FFO\") and in addition to PIDs, the Company will continue to make distributions derived from its German operations (\"non-PIDs\"). Non-PIDs will be treated like \"normal\" dividends paid by non-REIT companies and will not be subject to UK withholding tax.\n At the Company's next Annual General Meeting (\"AGM\"), scheduled for 29 July 2022, approval will be sought for the insertion of new clauses to its Articles of Incorporation (\"Articles\") in line with UK REIT requirements. Further details on the changes to the Articles and the implications of the REIT conversion will be provided to shareholders ahead of the AGM.\n \n Andrew Coombs, C...