Global REIT Survey 2011 - EPRA

Global REIT Survey 2011REPORTINGFrance (SIIC)with related parties, and on valuation practice. The FSIF has demonstratedits attachment to transparency in this area by in July 2008 publishing, withthe approval of the AMF, a voluntary Code for its members based on EPRAbest practice (EPRA BPR).The SIIC regime has attracted a number of foreign companies such as Corio,Rodamco Europe and Wereldhave (Netherlands), Hammerson (UK), Cofinimmoand Warehouse de Paw - (Belgium).2 Requirements2.1 Formalities / procedureKey requirements- The election letter must be filed with the competent tax office for the parent company witha list of the subsidiaries which also elect.- Subsidiaries’ list must be updated once a year.In France, an eligible real estate investment company (i.e. the parent company)may elect to apply for the SIIC regime within the first four months ofthe financial year (assuming that the SIIC regime is applying for the firsttime). An election may also be made by any corporate subsidiary whichengages in qualifying activities and is directly or indirectly held by one orseveral listed parent companies that have themselves elected for the SIICregime as parent or jointly held by a SIIC parent company (ies) and oneor several SPPICAV. In order for such a subsidiary to qualify, the parentcompany(ies) must have, together, at least a 95% ownership.The election letter must be filed with the competent tax office for the parentcompany with a list of the subsidiaries which also elect. The list must beupdated every year, together with the company’s annual corporation taxreturn.A subsidiary that wishes to elect for the SIIC regime must identify the parentcompany and file the election letter with the competent tax office.Phare – Unibail-Rodamco (La Defense, Paris) –The Phare project will see a highly sustainable125,000 sqm office complex in La Défense,Paris. Architect: Thom MayneDue to the changes in the company’s tax regime, the process of electionresults in a partial cessation of business. Therefore, the listed parent companyand its elected subsidiaries must file a specific cessation tax return.The election is irrevocable. Once it is made, the eligible companies may notwaive it. The election is also considered global because it applies to all theproperties and shares in the qualifying partnerships (Article 8 of the FTC).« back to content page3