Real Estate case studies

Real estate transactions are diverse and complex, often needing to be tailored to fit both the differing circumstances of the transacting parties as well as the particular nature of the property itself.

In addition to undertaking due diligence and financial assistance procedures, our teams have combined to ensure that the deal mechanics minimise corporation tax, VAT and SDLT as well as other commercial problems for our clients.

Our partner-led approach ensures that we can apply our experience to developing the most optimal and practical solutions to tax, accounting and related issues arising in these transactions. Here's an example.            

Helping Rugby Estates get its REIT right

We helped Rugby Estates launch a £50m Real Estate Investment Trust (REIT) entity which was set up to acquire smaller, mainly family-owned, property companies. In some cases, especially where ownership has passed through two or more generations, family members can’t agree on strategy. These kinds of companies tend to underperform. Shareholders may want to divest, but it’s hard to do so tax-efficiently.

We have been working with the REIT’s managers at Rugby Estates to locate likely candidates and undertake due diligence. We also provide tax services to the REIT and advise on the systems and processes it needs for regulatory and reporting purposes.

“The Rugby REIT has been very active and we have worked well with them across the country. We’ve built up a close understanding and that makes it far easier to add real value.” Richard Levy, Partner, BDO.

“The market’s been heading south, but even so it’s been a successful year for us. We made three acquisitions, which have worked out well. It was good to have BDO’s expertise and commercial acumen alongside. We’re monitoring the market for the moment and are focusing on maximising our portfolio, but we’re conservatively financed and remain alert to potential opportunities.” Philip Kendall, REIT Chairman.