According to this article on Forbes, the EU is compiling a panel of real estate experts to provide advice on REITs, and how they may be invested in beyond their respective nations in which each fund is incorporated. However, it looks like it will be a long while before anything is decided upon.
The commission said it has an 'open mind' on whether it will regulate in this area or not, and will report on this area in mid-2008.I see nothing but upside in this. I think it will result in a more efficient European real estate capital markets system, and spur development and increased investment in Eastern Europe, where there are currently a multitude of opportunities with a finite amount of capital chasing down deals. I'd like to hear thoughts from someone with a more knowledge than me on how European REITs are currently operating (both in terms of capital raising and investing).
Internal market and services commissioner Charlie McCreevy said the finds were widely available in several Member States, but added that they are 'locked up in their national markets - they cannot be sold across borders'.
'I am creating this expert group to look at this situation and to advise on whether there is any clear-cut case for EU action in this area,' he said, adding that he has 'an open mind on this issue'.
Real estate fund specialists interested in becoming members of the group are invited to apply by April 27, 2007.