Shareholders of Primary Health Properties (PHP) have backed the proposal to convert the company to real estate investment trust (REIT) status next year.
Shareholders of Primary Health Properties (PHP) have backed the proposal to convert the company to real estate investment trust (REIT) status next year.
PHP, a provider of GP practices and purpose-built healthcare facilities in the UK, said it would move quickly to implement the decision taken at an extraordinary general meeting and conversion will take place as of January 1 2007 when the tax-efficient vehicles are introduced in the UK.
The board indicated the company would incur a once-off entrance charge, probably to the tune of £4.5 mln, based on the value of its assets. It plans to pay the charge in four equal instalments.
Several UK real estate companies, including Land Securities and Slough Estates, intend to convert to REIT status in January.