Shiukay Hung, accomplice, co-chair, nationwide REIT tax apply at DLA Piper, sat down for a video interview at Nareit’s REITwise: 2026 Instructional Convention in Hollywood, Florida, March 24-26.
Hung defined why joint ventures between worldwide traders and U.S. public REITs are more and more fashionable. These constructions assist international traders reduce U.S. tax compliance burdens whereas investing effectively in U.S. actual property. Partnering with an skilled REIT operator offers each tax benefits and operational experience, creating robust alignment and worth for each side.
Nonetheless, challenges can come up—significantly round differing funding horizons and exit methods. For instance, pension funds or sovereign wealth funds could have longer-term objectives than REITs, requiring cautious negotiation of timelines, buyout rights, and governance phrases in three way partnership agreements.
Hung emphasised that profitable cross-border offers depend upon robust collaboration throughout authorized, tax, finance, and different disciplines. Establishing clear communication channels early—akin to inclusive working teams—helps guarantee alignment and smoother execution.
As Hung famous “we’re all aligned till we’re not,” highlighting the significance of proactive planning and negotiation to keep up that alignment all through the funding lifecycle.
