The Belgian government has, subject to some amendments concerning investment in residential properties, approved on 3 March 1995 a draft Royal Decree on Legal Vehicles for Collective Investments in Real Properties ("Societe d'Investissement Immobiliere a Capital Fixe"/"Vastgoedbeleggingvenootschap met vast Kapitaal"; hereinafter "SICAFI").
This Royal Decree regulation complements the regime of Belgian collective investment institutions organised under the Law of 4 December 1991 on financial operations and financial markets.
The SICAFI must be organised as a limited liability company (or a limited partnership by shares) with a capital of at least BEF 50,000,000. It must be licensed by the Banking and Finance Commission and must undertake to apply for listing of its shares on a stock exchange.
In order to be licensed, the SICAFI must provide a minimum budget covering the investments included in its investment programme for the first two years of its activities.
The real estate investments of the SICAFI must be evaluated on a regular basis by independant experts.
Authorised investments by a SICAFI include immovable property and rights in rem on immovable property, shares in real estate companies, option rights, publicly issued real estate certificates and real estate leasing rights. The SICAFI may also hold cash and securities other than those referred to above, but only under specific conditions.
The investment policy and operations of the SICAFI are subject to certain conditions and prohibitions. In particular:
- it may not invest more than 20% of its assets in a single real estate project; - it can incidentally act as lessor and, within certain limits, as lessee of real property; - it cannot grant securities in excess of 40% of the aggregate value of its real property; - it is obliged to distribute 80% of its net profits.The SICAFI is subject to the same special income tax regime as the ordinary SICAF/SICAV.
The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.
De Bandt, Van Hecke & Lagae - Brussels. (32-2)517.94.06.
Business Monitor 1995 Tel +44 171 820 7733
