The dissertation analyses the future potential of REIT’s in the UK commercial real estate market and the benefits that they can provide the investing community, even though REIT’s being existent for a minimal time in UK. In view of its dynamic nature and complicated taxation and legal issues, it is necessary to make a thorough investigation of all pros and cons of REIT as major firms such as Land Securities are moving away from being a full REIT by diversifying their portfolio and management of structure and not identifying the true potential that a REIT can offer in a premature market. The paper concludes that the U.S.-styled REIT will have a favourable impact on the commercial real estate market in the U.K., and recommends that REIT be altered to suit the needs of the UK to meet growing investor interest in real estate. The paper makes specific recommendations as to the manner in which REIT should be changed to unleash its full potential by benchmarking other REIT’s worldwide and the implications of the current UK economy has on REIT’s,.i.e. the ‘Credit crunch’.
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