August 2, 2010

Bill Easing Foreign Investment in REITs Passed by House

After wide approval, bill moves to Senate

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The House on Friday, July 30, passed the Real Estate, Jobs and Investment Act of 2010 (H.R. 5901), a bill designed to make it easier for foreign investors to invest in U.S. real estate investments trusts (REITs).

The bill, approved by a vote of 402-11, now moves to the Senate.

Ron Kuykendall, a spokesperson for the National Association of Real Estate Investment Trusts (NAREIT) says that the bill will "help the U.S. real estate community, through listed REITs, raise very much needed equity from non-U.S. investors. And it would provide a source of capital" for the U.S. real estate market.

FINRA released a regulatory notice last year (Notice 09-09), which required that 18 months following the conclusion of a non-listed REIT's offering, the REIT must publish a per-share value based on an appraisal of the REIT's assets and operations so that broker-dealers could include this value on their customers' account statements.

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