The statement added that the review could lead to an "immediate or phased" sale of the business. Or Slough might set up a joint venture or local merger with another US group. However, Slough cautioned there was "no certainty" that the review would result in a transaction.
The review was prompted by Slough's decision to convert to REIT status, and the US business would not be tax-free within the new structure. Draft legislation means UK REITs would no longer pay corporate tax or capital-gains tax if the assets are in the UK.
The group has also begun work on establishing a SIIC--France's version of a REIT. Slough executives said the French business accounted for more than 40% of the firm's European investment portfolio. The company has applied for a secondary listing on Euronext Paris.
Slough executives said there was still strong momentum in the lettings business and while rental levels were constrained in most regions, "There is evidence of higher rental growth in locations such as Bristol and Heathrow."
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