UK-based McKay Securities will convert to REIT status from April 1, 2007, the company has announced. McKay, a UK property group focused on office and industrial property in the south east, will hold an extraordinary meeting of shareholders on February 28 to approve a change in its articles of association before conversion.
UK-based McKay Securities will convert to REIT status from April 1, 2007, the company has announced. McKay, a UK property group focused on office and industrial property in the south east, will hold an extraordinary meeting of shareholders on February 28 to approve a change in its articles of association before conversion.
McKay is 38%-owned by the directors and by the family of the founder Peter McKay. The company will pay an entry charge of £9 mln (EUR 13.6 mln), or 2% of its gross assets. But McKay will write off deferred capital gains tax of nearly £20m, Property Week said. McKay is one of six UK listed property companies, including Derwent London, Big Yellow, Warner Estate Holding, Shaftesbury and A&J Mucklow, that are to convert to REITs, joining the nine that became REITs on January 1.