BE-REIT

Since 2014* Befimmo is a BE-REIT (SIR/GVV). The BE-REIT (SIR/GVV) is similar to Real Estate Investment Trusts (REIT) put in place in several countries (REIT (USA), SIIC (France) and FBI (Netherlands)).

The legislator intended the BE-REIT to ensure a high degree of transparency for real-estate investments and distribute an important part of its cash flow while enjoying certain advantages.

The BE-REIT is monitored by the Financial Services and Markets Authority (FSMA) and subject to specific regulations.

The main rules are as follows:

  • it must have the status of “Société Anonyme” or “Société en Commandite par Actions”;
  • it must be listed on the stock exchange;
  • borrowings may not exceed 65% of total assets at market value;
  • there are strict rules relating to conflicts of interest;
  • accountancy according to IFRS-rules and mainly the portfolio must be carried at market value;
  • the real-estate assets must be valued every quarter by independent experts;
  • the risk must be diversified: no more than 20% of the assets may be invested in only one property complex;
  • exemption from corporation tax provided that 80% of “cashflows” are distributed (calculated according to article 13 of the Royal Decree of 13 July 2014);
  • a withholding tax of 30% is deducted when paying out dividends.

This set of rules is designed to minimise the risk incurred.

Companies merging with a BE-REIT are subject to tax of 16.995% on unrealised capital gains and untaxed reserves (16.5% plus 3% additional crisis levy).

___________________

* Since its creation in 1995 and untill 13 November 2014, Befimmo was a Sicafi. For more information on Befimmo's status change, please consult the documents of the Extraordinary General Meeting of 21 October 2014.