Investment interest in the commercial property sector remains strong and Jersey’s popularity as a jurisdiction in which to structure property funds continues to grow. In the past year or so, all the evidence suggests the preeminent offshore vehicle of choice for commercial property investment or holding structures has been the Jersey property unit trust, or the JPUT, as this is now commonly referred to in the industry. Substantial portfolios in major industry sectors – office, retail, leisure and industrial – have been transferred to or acquired by JPUTs.
The unit trust is a legal structure whereby legal ownership of the trust assets is vested in a trustee who holds these on trust for the benefit of the unit holders. Under Jersey law, a unit trust must be constituted by a written instrument that sets out, in effect, the terms under which the trustee holds the trust assets for the benefit of the unit holders. Jersey law and regulation is very flexible as to the content of the trust instrument.
