David Jetuah, Accountancy Age, Thursday 5 August 2010 at 11:45:00

Property company London & Stamford, which has bankrolled flatdevelopments in Arsenal's former stadium converts to a real estate investmenttrust to gain tax breaks


Investment company London and Stamford Property International has convertedto a real estate investment trust, freeing the group from some of its futurecorporation tax payments.

The Guernsey-based company which has bankrolled flat developments in ArsenalFootball Club's former stadium, has moved to the main market of the London StockExchange in order to achieve REIT status.

London& Stamford said in a statement to the City: "The key advantage ofelecting for group UK-REIT status is that the companies within the enlargedgroup will be largely exempt from future corporation tax on both rental profitsand chargeable gains on disposal of investment properties."

London & Stamford added that the tax savings generated by the move wouldallow the REIT conversion charge to be re-paid within two years, subject to fullinvestment of cash resources.

"The LSP Board believes that the long-term future of the business is bestserved by converting to UK-REIT status, becoming a permanent life vehicle tofully capture the long-term benefits of REIT conversion, and internalising itsmanagement," London & Stamford said.

Further reading:

REITconversion plans announced by Mitchells & Butlers