Real Estate Structure | Arcadia Investments Group

Acquiring, developing, holding or managing Real Estate properties in the UK or abroad

Real estate investment vehicles may be used by institutional investors, real estate promoters, developers or private investors.

to acquire land or buildings
to hold, develop, refurbish and/or let
to create real estate private equity
for buy-to-let projects
to hold a participation in another real estate company

Real estate vehicles can be separated into regulated and unregulated vehicles.

Part I Funds for public distribution
Part II Funds for private placement
SIF, specialised investment funds, for private placement
RAIF, reserved alternative investment fund
SICAR, a private equity type investment vehicle
Securitisation Vehicles (public)

Securitisation Vehicles (non public)
SOPARFI
Special Limited Partnership

Institutional investors,- for example real estate funds, insurance companies, real estate private equity firms - who generally invest in real estate in the UK or abroad to let the properties directly or through a special purpose vehicle
Private investors and family offices who generally use the company as their investment vehicle to acquire properties and manage their portfolios
Developers and promoters who generally set up a company to purchase land, develop a building, and sell their interest in the company after completion of the project.

Real Estate Vehicles investing abroad

Within the frame of double tax treaties, UK often exempts the income derived from real estate situated abroad.

As such, the company becomes liable for tax in the country where the real estate is located . The taxable income is calculated following the rules of this country (each of which has its own taxation regime for real estate and some tax deductions are generally granted for interests and costs paid abroad or amortisation of the asset). Only the net profit is taxable in this country and receives a full tax exemption(corporate and wealth tax).

Should the country not have signed a double tax treaty, the taxable profit will not be exempted; however, it can be reduced by any costs or charges associated with the real estate activity realised abroad i.e. any interest payable on debts (mortgage or other bonds/debt instruments issued by the company) will be taken into consideration when calculating the tax liability.