TrizecHahn's carrier hotels, which house communicationsequipment for Internet companies, will be spun off into one entity;its US office portfolio into a real estate investment trust. Thechangeover to a REIT will take place over the next year. It can'ttake place immediately, Munk said, because of the complexitiesinvolved in foreign ownership of real estate and the need to takesteps to avoid incurring taxes.

"Creating a domestic US REIT can really deliver the benefit ofcash flow without having to sell buildings and pay full tax." Munknoted.

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