The group has a portfolio of over 110 healthcare properties located in the UK, Channel Islands, and Isle of Man with a total value of more than £900m

In a bid to optimise its investments in the UK, real estate company, Aedifica, has announced it has gained real estate investment trust (REIT) status.

The company has transferred its real estate activities in the UK, Jersey, and the Isle of Man to the recently-incorporated AED UK Holdings Ltd.

This wholly-owned, non-listed entity now holds the shares of all UK subsidiaries within the Aedifica group.

This change will not affect the day-to-day trading of the UK business and underlines the group’s commitment to the UK market.

The UK REIT regime was introduced in 2007.

Under the legislation, companies are exempt from UK corporation tax on UK property investment income and gains on UK property.

However, REITs must distribute 90% of underlying tax-exempt property income (not gains) to shareholders within 12 months.

These distributions are subject to a 20% withholding tax.

Following the double tax treaty between the UK and Belgium, the net impact of the withholding tax amounts to only 15%.

Aedifica’s UK portfolio Aedifica carried out its first investments in the UK in early 2019 and had established a dedicated local team in 2021.

By the end of 2023, the group had acquired and developed a portfolio of over 110 healthcare properties located in the UK, Channel Islands, and Isle of Man with a total value of more than £900m, generating £58m in annual contractual rent.

Together, these buildings provide a home to more than 7,200 residents.

In addition, Aedifica currently has an ongoing investment programme in seven projects in the UK amounting to approx €76m, of which €61m remains to be invested.