123 / 222
In Belgium, valuation is carried out by Jones Lang LaSalle SPRL/
BVBA (with registered offices located at Avenue Marnix/Marnixlaan
23, 1000 Brussels, Belgium). It is registered with the Brussels
companies register under no. 0403 376 874 and is represented by
Mr. Rod Scrivener.
In France, valuation is carried out by Jones Lang LaSalle Expertises
SAS (with registered offices located at 40-42 Rue la Boétie, 75008
Paris, France). It is registered with the Nanterre companies register
under no. 444 628 150 and is represented by Mrs. Marie Martins.
In accordance with Article 47 of the Royal Decree of 12.05.2014 relat-
ing to RREC, the real estate experts carry out a valuation of all the
properties in the portfolio of the public RREC and its subsidiaries at
the end of each financial year. The valuation determines the carry-
ing value of the property assets in the balance sheet. Furthermore,
at the end of each of the first three quarters of the year, the experts
update the overall valuation made at the end of the previous finan-
cial year, by reference to market developments and the nature of
the properties concerned. Finally, in accordance with the provisions
of Article 47 of the same Royal Decree, any property which is to
be acquired or disposed of by the RREC (or a company which it
controls) is valued by the experts before the transaction. This trans-
action must be carried out at the value determined by the experts
where the other party is a financial sponsor of the RREC (Cofinimmo
does not have such a financial sponsor), the depository bank or
any company with which the public RREC is linked by participating
interests or where any of the above-mentioned parties gains any
advantage from the transaction.
The valuation of a property consists of determining its value on
a specific date, i.e. the price at which the property is likely to be
exchanged between purchasers and sellers who are duly informed
and wish to carry out such a transaction, without any account
being taken of any special advantage between them. This value is
known as the “investment value” when it corresponds to the total
price payable by the purchaser, including, where appropriate, the
registration duties or VAT (if the acquisition is subject to VAT).
The fair value, within the meaning of the IAS/IFRS accounting prin-
ciples, can be obtained by deducting from the investment value an
appropriate portion of the registration duties and/or VAT, constitut-
ing transaction costs.
Transactions other than sales may lead to the mobilisation of the
portfolio, or a portion thereof, as shown by the operations carried
out by Cofinimmo since it acquired the status of RREC (formerly
Sicafi/Bevak).
The experts’ valuation depends in particular on the:
•
location;
•
age and type of building;
•
state of repair and level of comfort;
•
architectural appearance;
•
gross/net surface area ratio;
•
number of parking spaces;
•
rental conditions;
and, for healthcare real estate, the ratio rents/operating cash flow
before rents.
The remuneration of the real estate experts, calculated quarterly
on the basis of a fixed lump sum plus a fixed fee, amounted to
€988,258 (including VAT) in 2014.
119