Throughout the pandemic, the real estate sector has demonstrated its resilience, showing its ability to adapt and survive. And yet, the effect on the industry as a whole has still been devastating.
The retail and leisure sectors were heaviest hit, and the office market has also suffered badly. Only the logistics sector seems to have actually benefited from the pandemic. What has been truly remarkable though has been the way in which many property companies have pivoted their business models to survive.
Many property funds have also started to restructure. In part, that is down to recent changes to capital gains tax, but is also in response to the fact that the types of assets that funds are acquiring has shifted.
Smith & Williamson and Property Week are proud to unveil their latest Insight Guide, assessing the Covid-effect on tax and investment. With the dual impact of Brexit, this guide reveals how the real estate industry is evolving with the times, demonstrating its resilience and agility in a bid to future-proof asset classes.
Topics covered include:
- Why tax efficiency is crucial on the road to Covid recovery
- London agency REDD on the resilience of prime residential
- Expert comment on the changing real estate tax landscape
The need to continually adapt to address changing regulations and financial or market risks is a challenge experienced by real estate, construction and infrastructure companies across the globe - all of this while meeting the challenges of investing, expanding and achieving sustainable growth.
Smith & Williamson’s dedicated group is a leading advisor to ambitious businesses in the real estate and construction sector. We have the local, national and global capabilities to help firms succeed at all stages of their lifecycle.
Insight guide: Strategic sites offer huge potential
Read our 2020 Insight Guide in association with Property Week where we highlighted the wide range of parties involved in strategic land, it's potential and future trends for the sector.
Is the UK Funds Regime fit for UK Real Estate?
In recent years, the rules relating to non-residents owning UK property have become even more restrictive. HMRC has made it clear that it would prefer that UK property was not owned offshore, outside its sight and control. The new rules have, however, also had the effect of deterring many investors.
Real Estate Investment Trusts (REITs) face a battle to preserve their status
Even as some green shoots of recovery emerge, many tenants are still struggling to pay their landlords as the pandemic dents their cashflows and profits. This has left many Real Estate Investment Trusts (REITs) with a cash crunch – obliged to pay out 90% of their tax-exempt income profits from their property rental business to shareholders, but without the cash to do it. This is particularly true for REITs with high weightings in embattled sectors such as retail.