Franco-Dutch real estate group Unibail-Rodamco is to leave the Dutch equivalent of the tax-efficient real estate investment trust (REIT) regime. The Dutch system is known as the Fiscale Beleggingsinstelling (FBI).
Franco-Dutch real estate group Unibail-Rodamco is to leave the Dutch equivalent of the tax-efficient real estate investment trust (REIT) regime. The Dutch system is known as the Fiscale Beleggingsinstelling (FBI).
Europe’s latest listed property firm announced on Friday that it expects to lose the benefit of the tax exemption provided by the FBI regime for its Dutch activities from 1 January 2010.
The firm said it anticipates that the development will have no material impact on its results due to significant Dutch tax losses carried forward. The losses resulted from the decline in real estate values since the merger between France’s Unibail Holding and Netherlands-based international shopping centre specialist Rodamco Europe in mid-2007. The implementation of other measures were also a factor, Unibail-Rodamco said.
The Dutch real estate portfolio represents 13% of the Unibail-Rodamco Group’s total real estate portfolio.
The firm - which converted to Societas Europaea, or European Company status in May this year - still qualifies as a real estate investment trust under the French SIIC regime (the French equivalent of the FBI regime). 'If the Dutch FBI structure were to evolve in line with most other international REIT regimes, Unibail-Rodamco SE might reconsider re-entry,' the company added.
Unibail-Rodamco is listed in both Paris and Amsterdam.
