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Asocimi proposes measures to face the pandemic’s effects
29 May 2020 |

The Association which represents the Spanish REITs Asocimi drew a set of measures designed for the class to restart its activity after the lockdown caused by the Covi-19 pandemic. The proposals were delivered to the Spanish Government on the 31st of March.

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One of these measures is to extend the deadline to pay the 2019 dividends until the end of the year. It should be noted that REITs are not obliged to share at least 80% of its annual revenues amongst the shareholders. In the letter to which Idealista had access, Asocimi clarified that «we are not asking for the regime to be changed, but only for a temporary flexibilization of the abovementioned requirement. Thus, and to avoid an adverse impact, this measure could be limited to a simple extension of the dividend distribution deadline, but always during the ongoing fiscal year».

Another measure is to extend the deadline required for REITs to start being listed at the Stock Exchange which is currently 24 months. According to the association, «the current situation makes it impossible for new societies to gain access to the market, which would justify the two-year deadline to be suspended».

On the other hand, it was also demanded the Government to extend the three-month deadline to submit the accounts and the flexibilization of the rules concerning the sale of assets which currently establishes 3 years as a minimum rental period. The proposal suggests that the sale of assets which have been rented for more than 2 years and which will complete 3 years during 2020 be allowed, to generate liquidity.

The reduction of the TVA for asset refurbishments – which is currently set at 21% -, reduction in bureaucracy and the expansion of the investment range are other proposals placed on the table by Asocimi. In the same letter, REITs reinforce the legal security needed for the class.

Asocimi currently represents 32 REITs which operate in different segments, such as housing, retail, logistic and offices. To know more about its actions on the market, please click  HERE.