Stoneweg EREIT manager eyes REIT conversion to stapled trust
It will comprise Stoneweg European REIT and Stoneweg European Business Trust.
Stoneweg EREIT Management, as the manager of Stoneweg European Real Estate Investment Trust (REIT), said the REIT is proposed to be converted into a stapled trust.
It will comprise Stoneweg European REIT and Stoneweg European Business Trust. The stapled group would be known as Stoneweg European Stapled Trust (SERT).
The manager believes the proposal will benefit unitholders by providing Stoneweg European REIT with a future-proof corporate structure with optimal tax efficiency.
Furthermore, it will reduce reliance on passive rental income, balancing the more passive income stability of a REIT with the growth potential of a business trust.
Whilst the REIT component benefits from preferential tax treatment in Singapore, having a stapled REIT-BT structure may allow for greater tax structuring flexibility, especially in Europe.