BE-REIT
Information about WDP's status as BE-REIT.
WDP’s BE-REIT status
The BE-REIT status offers a liquid and diversified investment alternative to direct real estate that reflects the return profile of a direct real estate investment. WDP operates under this status since 2014, as a public Regulated Real Estate Company under Belgian law (public RREC).
A RREC can perform all the activities associated with the founding, reconstruction, renovation, development (for own portfolio), acquisition, disposal, management and operation of real estate properties. A RREC aims for general commercial goals in the long term and acts, just like any other operating and commercial company, in the interests of the company and, by extension, of all its stakeholders.
The following characteristics are specific to the public RREC status:
- Compulsory trading of the shares on a Belgian regulated market (Euronext Brussels);
- Statutory fixed maximum gearing ratio of 65% of its assets;
- Obligation to pay out at least 80% of its result;
- Strict rules regarding conflicts of interest;
- Occasional and regular valuation of the fair value of the real estate by an independent property expert;
- Diversification of its real estate in such a manner that the risks are spread in an appropriate way, for each type of real estate, for each geographical area, and for each category of user or tenant;
- A transaction must not result in more than 20% of its consolidated assets constituting one single real estate complex;
- Specific rules regarding internal control structures.
As a public RREC, WDP is under the prudential supervision of the Belgian Financial Services and Markets Authority (FSMA).
More on BE-REIT.be.
Change of status to a public Regulated Real Estate Company (completed)
On 26 August 2014, the FSMA granted WDP a licence as a public Regulated Real Estate Company under certain conditions precedent pursuant to the Law of 12 May 2014 governing the Regulated Real Estate Companies (the RREC law). The Extraordinary General Meeting of shareholders of WDP held on 16 October 2014 unanimously approved the object change with a view to the change of status from Property Investment Trust to public Regulated Real Estate Company according to the RREC Law. Since no exit right was exercised and all conditions precedent to which the change of the articles of association by the EGM and the licence (granted by the FSMA) were subjected, are thus fulfilled, WDP benefits of the status of public RREC with effect from 16 October 2014.