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TRANSACTION COSTS
In theory, the disposal of properties is subject to a transfer tax charged by
the Government and paid by the acquirer, which represent substantially
all transaction costs. For properties situated in Belgium, the amount of
this tax mainly depends on the mode of transfer, the capacity in which
the acquirer acts and the property’s location. The first two variables, and
therefore the amount of tax payable, are only known once the sale is con-
tracted. Based on a study from independent real estate experts dated
08.02.2006 and periodically reviewed, the average transaction cost for
properties over €2,500,000 is assessed at 2.5%.
The fair value (as defined under IAS/IFRS and by the BEAMA’s (Belgian
Asset Managers Association) press release of 08.02.2006) for properties
over €2,500,000 can therefore be obtained by deducting 2.5% of aver-
age transaction cost from their investment value. This 2.5% figure will be
reviewed periodically and adjusted if on the institutional investment trans-
action market a change of at least ±0.5% in the effectively average trans-
action cost is observed. For properties with an investment value under
€2,500,000 transfer taxes of 10% or 12.5% have been subtracted, depend-
ing on the region of Belgium where they are situated.
The transfer taxes on properties in France and the Netherlands have been
deducted in full from their investment values to obtain their fair values.
ASSETS SUBJECT TO A SALE OF RECEIVABLES
Cofinimmo is owner of several buildings of which the rents have been sold
in the past to a third party. The valuers have valued those properties as
freehold (before sale of receivables). At the request of Cofinimmo, the val-
ues mentioned below represent for these buildings the freehold value net
of the rents still due (residual value), as calculated by Cofinimmo. In the
forthcoming quarters, the residual value will evolve in such a way as to be,
at the maturity of the sale of the receivables, equivalent to the freehold
value. This calculation by Cofinimmo has not been analysed in depth by
the valuers.
INVESTMENT VALUE AND SALE VALUE
(FAIR VALUE)
Taking into account the two opinions, the investment value (transac-
tion costs not deducted) of Cofinimmo’s total real estate portfolio as of
31.12.2013 is estimated at €3,478,873,000.
Taking into account the two opinions, the likely sale value, after the deduc-
tion of the transaction transfer costs, of Cofinimmo’s total real estate port-
folio as of 31.12.2013, corresponding to the fair market value under IAS/
IFRS, is estimated at €3,347,009,000.
On this basis, the yield on rent, received or contracted, including from
assets that form the object of an assignment of receivables, but excluding
projects, land and buildings undergoing refurbishment, and after the appli-
cation of imputed rent to the premises occupied by Cofinimmo, amounts
to 6.70% of the investment value.
If the properties were to be let in full, the yield would increase to 7.03%.
Investment properties have an occupancy rate of 95.43%.
The contractually passing rent and the estimated rental value on the
empty spaces (excluding projects, buildings undergoing refurbishment
and assets that form the object of an assignment of receivables) for let
space plus the estimated rental value for vacant space is 6.93% above the
estimated fair rental value for the whole portfolio at this date.
The assets are broken down as follows:
Investment Value
Fair Value
% Fair Value
Offices
1,562,931,000
1,524,811,000
45.6%
Healthcare real estate
578,554,000
532,818,000
15.9%
Property of distribution networks
1,274,725,000
1,228,245,000
36.7%
Others
62,663,000
61,135,000
1.8%
TOTAL
3,478,873,000
3,347,009,000
100%
PWC OPINION
The investment value of the part of Cofinimmo’s real estate portfolio val-
ued by PwC is estimated as of 31.12.2013 at €852,044,000 and the likely
sale value (after the deduction of the transaction costs) is estimated at
€831,262,000, corresponding to the fair market value under IAS/IFRS.
Jean-Paul DUCARME FRICS
Ann SMOLDERS
Director PwC
Partner PwC
DTZ OPINION
The investment value of the part of Cofinimmo’s real estate portfolio val-
ued by DTZ and by Jones Lang Lasalle is estimated as of 31.12.2013 at
€2,626,829,000 and the likely sale value (after deduction of transaction
costs) at €2,515,747,000, corresponding to the fair market value under IAS/
IFRS.
Jean-Philippe Carmarans, MRICS
DTZ, International Director
Management Report /
Property Report
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