British property companies became eligible to convert to REIT status on Jan. 1 after a change in government legislation and have done so or declared their intention to do so, including Slough Estates and Liberty International. The conversion makes the companies substantially free of UK taxes on both income and capital gains.

"The benefits of REITs are immediate in terms of their boost to investors in the quoted property sector and those companies joining the regime," says British Land CEO Stephen Hester. "Until today, quoted property companies have had to operate at a considerable disadvantage to other property investment vehicles. REITs redress the balance and should make the sector more attractive to investors, old and new."

Concurrently with the REIT conversion, British Land appointed as its chairman Chris Gibson-Smith. Gibson-Smith was appointed deputy chairman earlier this year when Sir John Ritblat announced his retirement. Previously, Gibson-Smith has been group managing director of BP plc, chairman of National Air traffic Services Ltd., a non-executive director of LloydsTSB Group PLC and a trustee of the Institute of Public Policy Research.