Morimor represents Dream Properties in registration of REIT

Morgan & Morgan has represented Dream Properties, as sponsor, in the incorporation and registration with the Superintendencia del Mercado de Valores de Panamá (the SMV) of NF Real Estate Fund Inc. as a real estate investment trust (the Panamanian equivalent of a REIT).

The advisory involved the registration with the SMV and the placement of its Participative Shares through the Latin American Stock Exchange (LATINEX). The REIT was authorised by the SMV to publicly offer up to 1,000,000 of its Participating Shares, and successfully placed Series A and Series B Participating Shares through LATINEX.

REITs that comply with the aforementioned requirements of registration with the SMV, LATINEX and the Dirección General de Ingresos del Ministerior de Economía y Finanzas, among other additional conditions, are exempt from paying income tax at the corporate level. REIT shareholders pay income tax on distributions received from the REIT at the rates established in the Tax Code. However, all REITs are required to withhold 10% of the amounts distributed to shareholders in the form of advance income tax, which a REIT shareholder may elect to treat as the final and definitive income tax payable on the distribution received.

Insignia Financial Advisors acted as structurer; MMG Bank Corporation acted as paying and transfer agent, custodian and placement agent for the REIT; and MMG Asset Manangement Corp. acted as investment manager.

Morimor’s team was composed of partner Ricardo Arias (pictured left) and international associate Miguel Arias M (pictured right).