REIT



Public and private REITs have long been a method of securitizing or simply owning real estate and mortgages. REITs are now operating globally and investors are using REIT vehicles to invest in local and international markets. Following the creation of REITs in the United States many foreign jurisdictions have adopted or are in the process of adopting REIT comparable legislation, including Australia, Belgium, France, Germany, Hong Kong, Italy Japan, Malaysia, the Netherlands, Singapore, Taiwan, Thailand, Tokyo and the United Kingdom. We expect the globalization and securitization of real estate through the REIT vehicle to continue to expand and evolve.

Baker & McKenzie is the best choice of a legal services provider to help REIT industry professionals achieve their goals. There are two reasons why:

Baker & McKenzie’s REIT lawyers have been, and continue to be, at the forefront of the global REIT expansion. Our work has included the publication of one of the seminal papers establishing the US UPREIT tax structure, assisting in the drafting of the French REIT legislation and representing the first Hong Kong and J-REITs in their formation. At Baker & McKenzie, our REIT team strives to provide the seamless service required in the rapidly expanding cross-border nature of REITs.

Baker & McKenzie has always operated as a global firm and has deep and extensive resources embedded in the majority of jurisdictions in which our clients wish to do business. We work as an integrated multi-practice transactional group utilizing the experience of our corporate, finance, real estate, securities and tax lawyers all around the globe. What this means to you is that you get the advice and assistance you need, where you need it.

How We Can Help

• Tax structuring of investments in REIT vehicles taking into account the REIT shareholders’ requirements, formation of a local investment vehicle, direct investment from abroad or investment through a foreign vehicle
• Corporate legal and tax assistance for the formation/incorporation of a REIT, such as drafting the articles of association and other REIT deeds depending on the legal structure of the REIT, advising on the corporate governance, assisting on the lection for REIT status
• Legal assistance in stock market regulations, in particular, IPOs 
• Legal assistance in debt capital raising - drafting of the public offering legal documentation where a REIT shall be quoted on a stock market, assistance with discussions with the local stock exchange authorities
• Legal assistance in the drafting and negotiation of asset management agreements - when the REIT is externally managed, assistance in the negotiation and drafting of the various management agreements with the external service providers
• Tax optimization of REIT distributions (tax treaty benefits/withholding tax savings)
• Advise on the tax treatment of REIT income at the investor level
• Legal and tax assistance within the framework of real estate acquisitions performed by a REIT (tax structuring/due diligence work/drafting and negotiation of the acquisition documentation)