Morimor on Casas Grandes REIT registration
Morgan & Morgan Legal has advised Inversiones Inmobiliarias Casas Grande, as sponsor, in the incorporation and registration with the Superintendency of the Securities Market of Panama (“Superintendencia del Mercado de Valores de Panamá” or “SMV”), of FIDEICOMISO INMOBILIARIO CASAS GRANDES, as a Sociedad de Inversión Inmobiliaria (the Panamanian equivalent of a Real Estate Investment Trust or REIT).
The transaction was carried out in compliance with the requirements to benefit from the special tax regime provided for in article 706, paragraph 2 of the Panamanian Tax Code. To this end, the firm assisted in the registration with the SMV, the placement of its Participation Quotas through the Latin American Stock Exchange (Latinex) and the registration with the General Directorate of Revenue (DGI) of the Ministry of Economy and Finance.
The REIT was authorised by the SMV to publicly offer up to 10,000,000 of its Participation Quotas and to date, has placed, through Latinex, a total of 81,600 Series A Trust Participation Quotas.
REITs that comply with the aforementioned requirements of registration with the SMV, Latinex and DGI, among other additional conditions, are exempt from paying income tax at the corporate level.
Insignia Financial Advisors acted as structurer; MMG Bank Corporation acted as Paying and Transfer Agent, Custodian and Placement Agent for the REIT; and FIM Trust acted as trustee.
Morimor’s team consisted of partners Ricardo Arias (pictured left), Ana Carolina Castillo (pictured centre) and José Rafael Reyes (pictured right), and international associate Miguel Arias M.