PricewaterhouseCoopers: European Real Estate Opportunities for the Savvy Investor.Business/Real Estate/Foreign Editors LONDON and NEW YORK--(BUSINESS WIRE)--March 22, 2000 Improved Outlook in Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Hungary, Poland Structure and Domicile domicile (dŏm`əsīl'), one's legal residence. This may or may not be the place where one actually resides at any one time. The domicile is the permanent home to which one is presumed to have the intention of returning whenever the purpose are Keys for pan-European Property Funds Opportunities for successful real estate investing Real estate investing involves the purchase of real estate for profit. Profits are accumulated slowly by renting out properties in a cashflow method, or are generally improved and resold for a capital gain. in Europe are improving, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new report by PricewaterhouseCoopers, the world's largest professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. organization. In a pair of articles published in the latest edition of Global Real Estate Now (GREN), the firm advises, however, that tax treatment of real estate investment vehicles can vary substantially from nation to nation, and make a significant impact on net returns. While the Central and Eastern European markets have been in the doldrums for the past 18 months, GREN reports that capital flow into the region is increasing - specifically in the Czech Republic, Hungary and Poland. Several major German mortgage banks have been actively marketing their services in the region, along with a limited number of Austrian and French banks. Equity investment by Western institutions also is picking up, according to GREN, which notes that several major German and American investment managers have made property acquisitions recently in Poland and Hungary. A number of development/investment funds backed by U.S. money have been established over the past two to three years, and are now competing for institutionally acceptable properties - seeking yields significantly higher than those offered in nearby nations such as Germany and Austria. GREN cautions that the situation in nations such as Romania, Bulgaria and Russia is not as positive. The report predicts that institutional investment will grow in nations where political and economic stability continue to improve. Poland and the Czech Republic already have made tax code changes that are conducive to real estate investment, and the process of entering the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community should produce additional measures that make sale/leasebacks and other vehicles more commonplace and attractive. GREN also reports increased and broader investor interest in pan-European property funds. Traditionally, Western European real estate ownership has been dominated by owner/users, large insurance companies and pension funds. However, a growing number of mid-tier institutional investors are seeking exposure to the European real estate market via multi-investor vehicles with more liquidity than direct property investments offer. PricewaterhouseCoopers advises that both taxable and tax-exempt investors must compare the overall additional tax costs tax costs n. a motion to contest a claim for court costs submitted by a prevailing party in a lawsuit. It is called a "Motion to Tax Costs" and asks the judge to deny or reduce claimed costs. incurred through a fund with those incurred by direct property ownership. While these two main categories of investors generally have divergent tax-related interests within a fund, they share common ground in three areas: local taxes, "home jurisdiction" taxes and anti-foreign fund rules. GREN compares structures created for real estate investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company in various countries -- including Belgium, the United Kingdom, the Netherlands, Germany, Denmark, Spain and Luxembourg. It recommends a Luxembourg domicile for fund sponsors seeking a publicly-traded structure. Otherwise, the report recommends that sponsors consider investing in a combination of Luxembourg-based funds, U.K. limited partnerships, and/or Danish or Spanish holding companies, according to their specific needs. "The Outlook for Central & Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. " was authored by John Forbes John Forbes can refer to more than one person:
PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world. PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization. For a copy of Global Real Estate Now - The Evolving International Real Estate Marketplace, contact: (212) 596-8268 or thomas.derr@us.pwcglobal.com. |
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