Investors worldwide have enjoyed the access, convenience and tax advantage of Real Estate Investment Trusts (REITs) for decades, but the popular vehicle has never been offered in one of South America’s most stable and transparent commercial real estate markets…until now.
The first Uruguay REIT was just structured as a trust (fideicomiso in Spanish) and raised US$60 million from both individual and institutional investors. In turn, the funds will now be invested in income-producing commercial properties in Uruguay including Class A office space in Montevideo already being leased by large corporations with long-term contracts.
The pooling of funds gives small investors the opportunity to diversify their portfolios and gain access to a portfolio of high-end commercial properties like apartments, hotels, office buildings, shopping centers, health care facilities and warehouses. Other REIT benefits include higher-than-average yields, the stability of long-term lease contracts, simple tax treatment and liquidity…investors can usually sell their shares as easily as they bought them.
Uruguay now joins Argentina, Brazil and Mexico in the category of Latin American countries offering REITs. Investors interested in learning more about REIT opportunities in the region may wish to attend the Real Estate Investment World Latin America conference to be held October 2-3 in Miami. (Full Story in Spanish)
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