Good news for the market. «The Real Estate Investment Trusts’ legal regime is created, where the former is constituted as a vehicle for the promotion of investment and stimulation of the real estate market, in the rental segment. It will be following, in this way, a trend which is already consolidated in other important European markets, benefiting from the experience of other member states, which have for some years been regulating this type of societies, usually called Real Estate Investment Trusts», clarified the Portuguese Council of Ministers in an official announcement.
A “welcome and wise measure”
The APPII - Associação Portuguesa dos Promotores e Investidores Imobiliários (Portuguese Real Estate Developers and Investors Society), which has been demanding the creation of this type of investment regimes in the last few years, applauds the measure as "welcome and wise".
For APPII, this vehicle «channels international investment for the creation of further real estate offer which is so needed in our country», it can be read in a release. It further considers that this is «a proven case of success worldwide and represents a standardized and internationally accepted form of investment».
The new mechanism is approved at a time when «there are many companies and international funds willing to invest in Portugal, but which only invest in certain models of investment vehicles they are familiar with and with which they feel more comfortable, as is the case of REITs. The approval of the REIT regime was the missing sign for those funds to start investing in our country and start contributing to the growth of the offer available», believes the society.
“A very positive and significant step for Portugal”
Dominique Moerenhout, CEO at EPRA, stated to Iberian Property «we are very pleased about this great development, particularly as we at EPRA have been advocating for a Portuguese REIT regime for the past two years. This is a very positive and significant step for Portugal, which will benefit the European markets both in the medium and the long term».
«REIT regimes deliver strong and impressive results that benefit countries and society at large as buildings are where we all work, live and play, but they also benefit pensioners and savers and it is an encouraging sign that Portugal is now boosting the Iberian economy by joining the key European markets».
Just as in Spain, «an efficient REIT regime allows real estate companies to develop and build quality assets that form a key aspect of people’s everyday life. Now that Portugal has also implemented its own REIT regime, this will likely yield benefits to the property market and further advance key achievements and innovations of the built environment, resulting in a strong and resourceful economy».