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Notes to the Consolidated Accounts
\ Annual Accounts
The effective rate of the transfer duties therefore varies from 0% to 12.5%,
whereby it is not possible to predict which rate would apply to the transfer
of a given property before that transfer has effectively taken place.
In January 2006, all the independent real estate experts
1
who carry out
the periodic valuation of the Belgian Sicafis’/Bevaks’ assets were asked to
compute a weighted average transaction cost percentage to apply on the
Sicafis’/Bevaks’ property portfolios, based on supporting historical data.
For transactions concerning properties with an overall value exceeding
€2.5 million, given the range of different methods for property transfers
(see above), the experts have calculated, on the basis of a representative
sample of 220 transactions which took place in the market between 2003
and 2005 and totalling €6.0 billion, that the weighted average transfer tax
comes to 2.5%. This percentage is reviewed annually and, if necessary,
adjusted at each 0.5% threshold.
For transactions concerning properties with an overall value of less than
€2.5million, transaction costs of between 10.0% and 12.5% apply, depend-
ing on the Region in which the property is located.
At 01.01.2004 (date of transition to IAS/IFRS), the transaction costs
deducted from the investment value of the property portfolio amounted
to €45.5 million and were recorded under a separate equity item entitled
“Impact on the fair value of estimated transaction costs and transfer
duties resulting from the hypothetical disposal of investment properties”.
The 2.5% transaction costs have been applied to the subsequent acqui-
sitions of buildings. At 31.12.2013, the difference between the investment
value and the fair value of the global portfolio amounted to €131.86 million
or €7.50 per share.
It is worth noting that the average gain in relation to the investment value
realised on the disposals of assets operated since the changeover to the
Sicafi/Bevak regime in 1996 stands at 9.78%. Since that date, Cofinimmo
SA/NV has undertaken 127 asset disposals for a total of €1,437.44 million.
This gain would have been 12.23% if the deduction of transaction costs
and transfer duties had been recognised as from 1996.
The transfer duties applied to the buildings located in France and in the
Netherlands amount to 6.06% and 6.03% respectively.
Determination of the valuation level of the fair value of
the investment properties
The fair value of the investment properties in the balance sheet results
exclusively from the portfolio's valuation by independent real estate
experts.
To determine the fair value of the investment properties, the nature, char-
acteristics and risks of these properties, as well as available market data,
were examined:
Because of the state of market liquidity and the difficulty to find unques-
tionably comparable transaction data, the level of valuation, within the
meaning of IFRS 13, of the fair value of the Cofinimmo buildings is 3, and
this for the entire portfolio.
(x €1,000)
31.12.2013
31.12.2012
Asset category
Level 3
2
Level 3
2
Offices
1,524,811
1,543,157
Antwerp
61,847
61,749
Brussels CBD
548,569
559,496
Brussels Decentralised
582,029
600,248
Brussels Periphery/ Satellites
143,336
145,333
Other Regions
111,323
108,357
Offices under development
77,707
67,974
Healthcare real estate
1,228,245
1,172,441
Belgium
747,969
692,761
France and the Netherlands
429,380
421,981
Healthcare real estate under development
50,896
57,699
Property of distribution networks
532,818
529,258
Pubstone Belgium
272,243
270,147
Pubstone Netherlands
150,650
149,686
Cofinimur I France
109,925
109,425
Other
61,135
63,715
Other
61,135
63,715
TOTAL
3,347,009
3,308,571
1
Cushman & Wakefield, de Crombrugghe & Partners, Winssinger & Associates, Stadim and Troostwijk-Roux.
2
Under IFRS 13, the basis of the fair value valuations can be qualified as:
- Level 1: observable listed prices in active markets;
- Level 2: observable data other than the listed prices included in level 1;
- Level 3: unobservable data.