Canadian Hotel Income Properties

This time it was the British Columbia Investment Management Corp., with $85-billion in assets under management, that snagged Vancouver-based CHIP Real Estate Investment Trust with a $19.10-a-unit offer, a 22% premium over what the REIT was trading at before it announced March 27 that it was considering a strategic review that could include a sale. The decision by CHIP to consider a possible sale came as the federal government introduced new guidelines to qualify for REIT status and a huge tax advantage. Ottawa has demanded that 95% of any REIT's income come from "passive investments," basically rent, but also has said hotel income doesn't qualify.