REIT

REIT legal initiative submitted in the Romanian Parliament

REIT legal initiative submitted in the Romanian Parliament 900 600 BUCHAREST REAL ESTATE CLUB


REIT legal initiative submitted in the Romanian Parliament

Following the joint initiative of Bucharest Real Estate Club – the main industry’s association – and Bucharest Stock Exchange to promote the regulation of Real Estate Investments Trusts (REIT) on the Romanian market, the legal initiative was submitted in the Parliament earlier this month.

22.04.2024

REITs are investment vehicles which facilitate the access of individuals and legal entities to a diversified portfolio of real estate properties. Through these entities, investors can access and invest in real estate in a simplified and efficient manner. An important aspect of REITs is that they are listed companies on a regulated exchange, which ensures transparency, liquidity, and proper oversight for investors.

The lack of an appropriate legal framework for REITs in Romania constrains the development of this market, depriving the Romanian economy of the opportunities created by this type of instrument, such as the existence of a new source of stable financing.


Despina Ponomarenco, President of BREC

“Globally, the estimate for the value of REITs is 3,000 billion Euros. Regarding the EU member states, Romania, Croatia, Estonia, Latvia, Lithuania, Malta, and Slovakia are the only member states that have not regulated a specific tax regime for real estate investment companies. The Romanian real estate market has faced many challenges in recent years: the restrictions due to the COVID pandemic, inflation, the war on the border, the lack of predictability and, particularly for Bucharest, the urban gridlock. Under these conditions, the regulation of this instrument would attract new investors who are not present on the market.”


Adrian Tănase, CEO, Bucharest Stock Exchange

“This project takes into account the need to develop the local capital market and transform it into a viable channel for investing Romanians’ savings in real estate, a sector that is of great importance for Romania’s economy. The regulation of REIT-type instruments will attract investments both from the population and from Romanian or foreign institutional investors, thus generating an extension of economic activity in all sectors impacted by the real estate industry.”

New opportunities for the real estate market in Romania

New opportunities for the real estate market in Romania 900 600 BUCHAREST REAL ESTATE CLUB

5.12.2023

Bucharest Real Estate Club in partnership with the Bucharest Stock Exchange and the Budget & Finance Committee from the Chamber of Deputies organized today at the Palace of the Parliament, the round table on the regulation of REITs (Real Estate Investment Trusts).

REITs are investment vehicles which facilitate the access of individuals and legal entities to a diversified portfolio of real estate properties. Through these entities, investors can access and invest in real estate in a simplified and efficient manner. An important aspect of REITs is that they are listed companies on a regulated exchange, which ensures transparency, liquidity, and proper oversight for investors.

“The Romanian real estate market has faced many challenges in recent years: the restrictions due to the COVID pandemic, inflation, the war near the border, the lack of predictability and, particularly for Bucharest, the urban blockage. Under these conditions, the regulation of this instrument would attract new investors, which are not present on the market”, Despina Ponomarenco, BREC President said.

The debate was attended by Alfred Simonis, Interim President of the Chamber of Deputies; Florin Spătaru, State Counsellor within the Prime Minister’s Chancellery; members of the Budget & Finance Committee from the Chamber of Deputies; Adrian Zuckerman, former ambassador of USA in Romania; Adrian Tanase, CFA, CEO of the Bucharest Stock Exchange; Dan Manolescu, President of the Chamber of Fiscal Consultants; representatives of the Financial Supervisory Authority; representatives of pension funds, as well as representatives of BREC member companies: Tinu Sebesanu – IMPACT Developer & Contractor; Marius Persenea – IULIUS; Bogdan Gubandru – Redport Capital; Alexandru Bonea and Antoanela Virginia Comsa – Meta Estate Trust; Laura Dumea-Bencze – CBRE Romania; Costin Nistor – FORTIM Trusted Advisors; Alliance Member of BNP Paribas Real Estate; Tudor Iuga – Simon, Iuga & Partners; Real Estate Advisors; Roxana Roman (Dudau) – Wolf Theiss; Mihaela Ispas and Ioana Grigoriu – Filip & Company.

The regulation of REIT- type instruments was included in the OECD recommendations regarding the capital market in Romania, in the report issued by the organization in 2022. Currently, all G-7 nations and almost two thirds of the OECD countries have institutionalized these entities.

For the event gallery, click here: https://brec.ro/events/reit-reglementation-debate-at-the-romanian-parliament-december-2023/