An investment property’s value is primarily determined by its rental yield and location. The property’s overall condition, the calibre of the tenants and the prospects for local development also play a decisive role. Viewings and a thorough valuation report enable a fair price to be set, one that is as close as possible to market realities.
It is important not to overlook essential administrative formalities, such as the Energy Performance Certificate (EPC) or compliance of the building’s installations, which can hold up the sale. A property that is ready for sale reassures buyers and speeds up the transaction.
Selling a family-owned business: steps and practical advice
A property company is a flexible tool for managing family or business assets. Selling it often involves disposing of a portfolio of assets and the associated shares. It is essential to understand the legal, tax and accounting implications before embarking on the process.
Selling a property company cannot be done on the spur of the moment. You need to estimate its value, prepare the accounting documents and plan for negotiations with potential buyers. TREVI can help you navigate these steps.
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The value of a property company depends not only on the value of its assets, but also on its liabilities and the quality of its management. Valuation involves analysing balance sheets, rental income and future projections.
It is common practice to use several complementary methods to arrive at a reliable estimate,
particularly by taking into account the specific characteristics of the Belgian market and the particular features of each company. -
P: There are two main approaches: asset value, based on the properties held, and income value, which takes into account the income generated. The former is based on property valuations, whilst the latter is based on cash flows.
In some cases, the market value of shares may also be influenced by less tangible factors, such as the quality of the leases or the portfolio’s growth potential. -
The sale begins with a phase of valuation and preparation of the legal and financial documents. This is followed by the search for buyers and the negotiation of terms. The signing of the deed of sale concludes the transaction.
Each stage must be followed meticulously to avoid any surprises, particularly regarding specific clauses in the articles of association or conditions precedent. -
Taxation on the sale of a holding company can be complex, involving tax on capital gains and liquidation surpluses. The nature of the assets and the length of time they have been held have a significant impact on the tax liability.
Certain schemes can help to optimise the tax impact, but they require detailed analysis and often the involvement of specialists. Ignoring these aspects can prove costly. -
An SCI is a structure often favoured for family-owned property. Its disposal involves the transfer of shares, subject to specific rules regarding the consent of the partners and the applicable tax regime.
The formalities include amending the articles of association, informing the other partners and, in some cases, the involvement
of a notary. The Belgian market remains mindful of these specific features. -
Selling shares is often simpler than selling assets directly, but it is still subject to the company’s articles of association and relevant regulations. An agreement between shareholders may be required.
This method of disposal offers a degree of flexibility, particularly for family succession or the entry of new investors, but it requires a sound understanding of the legal implications. -
Selling the company rather than the assets themselves may prove advantageous in terms of ensuring the continuity of contracts, avoiding the revaluation of assets or optimising tax liability.
This option also facilitates the transfer of ownership and may appeal to buyers wishing to invest in an existing portfolio with management already in place. -
Selling shares can enable you to avoid certain taxes on property transfers and benefit from a different capital gains tax regime.
In some cases, it also avoids the more cumbersome formalities associated with a conventional property sale, which is a significant consideration in Belgium. -
You need to start by carrying out an accurate valuation, preparing a comprehensive dossier, informing the partners, and then finding a serious buyer. The process is concluded with the signing of the agreement and the legal finalisation.
Each stage requires careful attention and forward planning, so as not to compromise the value or delay the transaction. -
The manager may not sell any property belonging to the company without the consent of the partners, unless the articles of association expressly provide for such authorisation or a resolution has been passed at a general meeting.
This rule protects the collective interests of the company and prevents unilateral sales. In practice, it is often necessary to negotiate and formalise this approval. -
A minimum holding period of five years is often recommended in order to benefit from more favourable tax treatment on capital gains, particularly with regard to liquidation bonuses.
Waiting for this period to elapse can also help to consolidate the value of your assets and optimise their transfer in line with market trends. -
Timing affects both tax liability and the value of the company. Selling after a period of rising property values or at a time when tax rates are more favourable can make a significant difference.
It is important to keep an eye on legislative changes and trends in the Belgian market in order to choose the right moment carefully. Our advisers can help you make sense of it all.
