Portuguese REITS have come into force

Starting February 1st, a REITs regime has come into force in Portugal.

Known as SIGI – Sociedades de Investimento e Gestão Imobiliária, the Portuguese REITS are regulated by the legislative decree nº19/2019, published in Diario da República on 28thJanuary.

This legislation sets a minimum share capital of €5 million to create a SIGI, which has to be listed into the stock market. Among all the other requirements which can be found in the diploma, for instance these societies have also a limited indebtedness level correspondent to a maximum of 60% of its total assets value.

Aiming to boost even further the real estate investment activity in Portugal, and particularly the home rental market, the SIGI portfolios must include property assets dedicated rental or to be explored in other ways of long term economic use. Even though the residential market is appointed as its main focus, it is not obligatory as the SIGI may also invest in other asset classes, such as retail, logistics or offices, for instance.

Original Story: Vida Imobiliária | Fernanda Cerqueira
Photo: Humberto Plácido da Silva
Translation and Edition:Prime Yield