IFM30045 | Real Estate Investment Trust : Joint ventures: Joint Venture Look-Through Notice: change in percentage interest in joint venture company

To give notice for ‘look-through’ treatment, the venturing company or venturing group must have an interest of 40% or more in the joint venture company/group. If the interest increases after the notice becomes effective, a higher proportion of the assets, profits etc of the joint venture company/group are taken into account in the property rental business and other conditions and tests.

Where the interest at the time the notice becomes effective was over 40%, subsequently decreases, but remains above 40%, a lower proportion of the assets, profits etc of the joint venture company/group are taken into account in the property rental business and other conditions and tests. There are no provisions for refund of Entry Charge in these circumstances.

Where the interest at the time the notice becomes effective was over 40%, subsequently decreases and falls below 40%, the JV conditions are no longer met and the JV notice ceases to have effect (see IFM30040)