‘Most’ Belgian REITs plan to adopt a new corporate status and avoid AIFMD rules, according to the European Public Real Estate Association (EPRA).

‘Most’ Belgian REITs plan to adopt a new corporate status and avoid AIFMD rules, according to the European Public Real Estate Association (EPRA).

The AIFMD (Alternative Investment Fund Managers Directive) was adopted by the European Parliament in late 2010 as a response to the 2008 financial crisis.

The rules bring greater regulation to alternative investments such as real estate funds, hedge funds and private equity.

In July this year, Belgium introduced a law that allows REITs (real estate investment trusts) to become regulated real estate firms and so avoid AIFMD rules.

‘The new status is a welcome recognition that REITs differ from funds because they are genuine operational and commercial real estate companies,’ said Laurent Carlier, CFO of Befimmo, a Belgian REIT that has co-ordinated the industry’s response.

‘We are convinced that most Belgian REITs will adopt the new corporate statute. Belgium took a common sense and pragmatic approach,’ he said, adding that the new status would allow Belgian REITs to stay on ‘a level playing field with the other European REIT regimes.’

Belgium has 16 REITs, with a market value of around €7.5bn in total. So far nine of these have called extraordinary general meetings to allow shareholders to vote on the new status.