UK-based Legal & General has received approval from the FCA to convert its £1.2 billion L&G Property Trust into a Property Authorised Investment fund (PAIF) structure.
Managed by Michael Barrie and Mark Jarvis, the fund will be converted to the tax-efficient structure on 27 May, Investment Week reported.
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PAIFs will be more investor-friendly property vehicle than typical unit trusts because managers are exempted from the requirement to hold 20% of their rental income for tax purposes.
The conversion is subject to the final approval of a unit holders vote at an Extraordinary General Meeting (EGM) on 9 May 2014.
