167 / 222
163
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 RREC assets were asked to
compute a weighed average transaction cost percentage to apply
on the RREC property portfolios, based on supporting historical data.
For transactions concerning properties with an overall value exceed-
ing €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 percent-
age is reviewed annually and, if necessary, adjusted at each 0.5%
threshold.
For transactions concerning properties with an overall value of less
than €2.5 million, transaction costs of between 10.0% and 12.5%
apply, depending 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 transac-
tion costs and transfer duties resulting from the hypothetical dis-
posal of investment properties”.
The 2.5% transaction costs have been applied to the subsequent
acquisitions of buildings. At 31.12.2014, the difference between the
investment value and the fair value of the global portfolio amounted
to €130.03 million or €7.24 per share.
It is worth noting that the average gain in relation to the invest-
ment value realised on the disposals of assets operated since the
changeover to the RREC regime in 1996 stands at 9.32%. Since that
date, Cofinimmo SA/NV has undertaken 147 asset disposals for
a total of €1,515.72 million. This gain would have been 11.40% if the
deduction of transaction costs and transfer duties had been recog-
nised as from 1996.
The transfer duties applied to the buildings located in France, in the
Netherlands and in Germany amount to 6.75%, 4.89% and 5.00%
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,
characteristics 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
unquestionably comparable transaction data, the level of valuation,
within the meaning of IFRS 13, of the fair value of the Cofinimmo
buildings is level 3, and this for the entire portfolio.
(x €1,000)
31.12.2014
31.12.2013
Asset category
Level 3
2
Level 3
2
Offices
1,311,976
1,524,811
Antwerp
64,945
61,847
Brussels CBD
378,917
548,569
Brussels Decentralised
547,432
582,029
Brussels Periphery/Satellites
141,703
143,336
Other Regions
113,278
111,323
Offices under development
65,701
77,707
Healthcare real estate
1,289,103
1,228,245
Belgium
804,956
747,969
France
375,417
418,130
Netherlands and Germany
87,290
11,250
Healthcare real estate under development
21,440
50,896
Property of distribution networks
533,538
532,818
Pubstone Belgium
272,202
272,243
Pubstone Netherlands
149,396
150,650
Cofinimur I France
111,940
109,925
Other
64,566
61,135
TOTAL
3,199,183
3,347,009
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.