Capital & Counties has converted to a UK REIT following the sale of its interests in Earls Court.
Under the REIT regime, the group will no longer pay UK direct tax on profits and gains from qualifying rental business.
Following the sale of Earls Court for £425m, the company has positioned itself as a prime central London property investment business with a portfolio of assets located in and around Covent Garden.
Capital & Counties said it would target a progressive dividend policy over the medium-term by driving rental growth and securing income.
It has around £900m of cash and undrawn facilities on its balance sheet and is seeking further investment opportunities in the Covent Garden area.
Last week it acquired two properties in Covent Garden – 5-6 Henrietta Street and 36-39 Maiden Lane – for a combined £51.8m.
CAPC : Capital & Counties converts to REIT