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Stephen Pincus quoted in "Trusts begin to make a comeback", The Globe and Mail

May-15-2012

Lawyer Stephen Pincus
Area REITs and Income Securities

Details

Excerpt from:  "Trusts begin to make a comeback", Nathan Vanderklippe:

"The basic concept here is that Canada is better off having income that can be taxed in Canada in the hands of shareholders or unitholders,” said Stephen Pincus, chair of the REITs and Income Securities Practice at Goodmans.  “And if you have a U.S. portfolio of assets, they would not otherwise produce Canadian tax revenue.”

Canadian investments in U.S. assets aren’t new.  The past decade has seen the emergence of TSX-traded companies that deal in U.S. school buses (Student Transportation Inc.), electricity (Atlantic Power Corp.) and hospitals (Medical Facilities Corp.).  Canadian markets, which are accustomed to IPOs as small as $100-million, can be a far more favourable place to raise money than the U.S., where IPOs often don’t get off the ground unless they are $1-billion or larger.  But the idea is clearly gaining steam.  Mr. Pincus has a client who is in the process of registering a prospectus for a new REIT with U.S. and Canadian assets.  Argent is taking a second stab at going public – its first attempt failed, as did that of another would-be energy trust, North American Oil Trust, when markets stumbled last summer.

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