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705B Conditions for notice under section 705E.

(1) Subject to subsections (2) and (3), the notice referred to in section 705E shall contain a statement to the effect that—

(a) each of the following conditions, in relation to a REIT or the principal company of a group REIT, as the case may be, is met throughout the specified accounting period, namely—

(i) it is resident in the State and not resident in another territory,

(ii) it is incorporated under the Companies Acts,

(iii) its shares are listed on the main market of a recognized stock exchange in a Member State, and

(iv) it is not a close company within the meaning of Chapter 1 of Part 13,

and

(b) each of the following conditions, in relation to a REIT or group REIT, as the case may be, is reasonably expected to be met at the end of the specified accounting period, namely—

(i) at least 75 per cent of the aggregate income of the REIT or group REIT derives from carrying on property rental business,

(ii) it conducts property rental business consisting of at least three properties, the market value of no one of which is more than 40 per cent of the total market value of the properties constituting the property rental business,

(iii) it maintains a property financing costs ratio (within the meaning of section 705H(1)) of at least 1.25:1,

(iv) at least 75 per cent of the aggregate market value of the assets of the REIT or group REIT relates to assets of the property rental business of the REIT or group REIT, as the case may be,

(v) it ensures that the aggregate of the specified debt shall not exceed an amount equal to 50 per cent of the aggregate market value of the assets of the business or businesses of the REIT or group REIT, as the case may be, and

(vi) subject to having sufficient distributable reserves, it distributes to the shareholders of the REIT or the shareholders of the principal company of the group REIT, as the case may be, at least 85 per cent of the property income for each accounting period of the REIT or group REIT, as the case may be, by way of property income dividend, on or before the specified return date for the accounting period in relation to the REIT, or the principal company of the group REIT, as the case may be.

(2) Each of the conditions in subparagraphs (iii) and (iv) of subsection (1)(a) shall be regarded as having been met throughout the specified accounting period if that condition is met within the period of three years commencing on the date on which the company or group becomes a REIT, or group REIT, as the case may be.

(3) The condition in subparagraph (ii) of subsection (1)(b) shall be regarded as having been met at the end of the specified accounting period if that condition is met within the period of three years commencing on the date on which the company or group becomes a REIT, or group REIT, as the case may be.

(4) Subparagraph (iv) of subsection (1)(a) shall not apply to a REIT or a group REIT, as the case may be, which is under the control of persons who are qualifying investors.

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