Inmobiliaria Colonial SA's shareholders approved the company's proposal to convert into a Spanish real estate investment trust, or SOCIMI, with retroactive effect from Jan 1.

The conversion is expected to reduce the company's effective tax rate to zero percent; improve cash flow; make an instant, one-off positive impact of €72 million on equity and consolidated profits; provide an opportunity to continue using its tax shield to structure investments and sale transactions; and attract additional institutional investors with a potential increase in its share price liquidity.

According to its latest business update, Colonial holds a prime office portfolio of more than 1 million square meters in the main business areas of Barcelona, Madrid and Paris and has about €8.67 billion worth of assets under management.