Christophe Kalinauckas, partner at Appleby talks with Stephanie Workman, Senior Manager, Real Estate Services at Crestbridge. Christophe shares insights into the popular structures clients use for holding commercial and residential real estate.
A summary and certain highlights are as follows:
1. Introduction to the three main areas of Real Estate
a. Real estate property finance
(REF) - Acquisition/development finance
b. Structuring - Formation, administration, governance and other
services for property holding structures including JPUTs and
REITs
c. Funds - Cross-jurisdictional advice on the full spectrum of
real estate funds including the popular Jersey Private Fund
(JPF)
2. Trends in the Real Estate industry
a. ESG-style focus on social justice
and good governance amid a backdrop of economic uncertainty.
b. Comprehensive advice around governance - not just in theory and
also in practice.
c. Asset classes expected to rise in value, and others that may
see a decline.
d. The appetite of investors looking at real estate and turnaround
opportunities.
3. Enforcement scenarios
a. Banks and secured parties looking
at enforcement scenarios.
b. Reviews of structures and security packages, to remedy any
deficiencies in advance of any enforcement action.
c. Duties of banks and secured parties looking at enforcement and
potentially exercising a power of sale under the Security Interests
(Jersey) Law 2012
4. REITS - Real Estate Investment Trusts
a. Globally recognised tax efficient
structures for investment into UK real estate.
b. Using Crown Dependency companies to establish a REIT compared
to a UK equivalent
c. The qualifying conditions in the UK Corporation Tax Act 2010 to
become a REIT, including listing on a recognised stock
exchange;
d. The International Stock Exchange (TISE) and the exemption of
REITs from the 25% "free float" requirement
e. The process of listing REITS on TISE
f. Themes of listings and why a stock exchange listing is a mark
of authenticity
g. Green market segment called TISE GREEN
5. Jersey Property Unit Trusts (JPUTS)
a. Advantages of using JPUTs as a
popular vehicle for holding UK real estate
b. How to establish a JPUT, with transparency for UK income tax
purposes
c. Flexibility under the Trusts (Jersey) Law 1984, and duties of
the trustees of a JPUT
d. How a JPUT is operated, managed and regulated
6. Jersey Private Funds (JPFs)
a. Why the JPF is aimed at
sophisticated investors within Jersey's pragmatic regulatory
environment
b. Eligibility criteria for a JPF, including categories of
eligible investors
c. Applications to be submitted to the JFSC and duties of the
Designated Service Provider
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