Real Estate

Real Estate

The private real-estate sector brings together multiple players covering several different forms of legal entity and operating with significant capital requirements. Our team of specialists support Institutional and international real-estate operators in carrying out their projects, from standard accounts management to setting-up complex acquisition structures.

Accounting
  • Outsourcing the accounts for investment vehicles and the statutory auditing of SPVs
  • Periodic and multi-referential reporting according to French PCF (GAAP) and international standards (IFRS) or US GAAP standards according to the consolidation frame of reference
  • Digitization and workflow solutions for approving the accounting records
  • Additional accounting and financial support
  • Accounts delegatee (OPPCI) on behalf of management companies
Financial and accounting consulting
  • Consulting and assistance in setting-up SIIC or OPPCI/SPPICAV-regime vehicles
  • Optimization of the accounting consequences of the option for the SIIC or OPPCI/SPPICAV regime, accounts processing of the revaluations
  • Structuring and optimization of distribution obligations within the framework of the SIIC and OPPCI/SPPICAV regime (management of cash-traps)
  • Leasing agreement acquisition – accounting and tax consequences when exercising the option
  • Real-estate development operations – managing the progress
  • Support in choosing the accounting options according to the standards in force
  • Implementation of accounting information systems
  • Securing of accounting data established by the property administrator before integration
Standard tax management and Assistance with tax audits

 

  • Assistance during the option for the SIIC and OPPCI/SPPICAV regime and estimation to the Exit Tax
  • Tax management of transparent companies (SCI, SNC) and application of the Quemener case law
  • Management of land and tax integration
  • Monitoring problems of limited interests – thin capitalization rules
  • Real-estate VAT and VAT on margins for asset purchase and sales operations (VAT election letter, calculation and certification of 20th of VAT, article 257 a etc.)
  • Management of tax obligations of non-residents owning assets in France
  • Support during accounting verification procedures by the tax administration
  • Calculation of deferred taxes
  • Preparation of standard tax returns
Strategic acquisitions support
  • Accounting audit on acquisitions (due diligence) and declarative verifications in tax matters
  • Calculation and negotiation of the unit price in the case of a share deal
  • Tax optimization in relation to legal counsel
  • Post-acquisition monitoring
  • Assistance in implementing data rooms (VDD)

Typical Assignments

Restructuring a Real-Estate Fund (“Prime” office buildings) on behalf of a renowned Scottish asset management company (€350 billion in assets)

  • Study in to the accounting and tax consequences of transferring the fund activity and the contribution/transfer to an OPCI vehicle created for this purpose:
  • Simplification of the organization by short-form amalgamation of the structures with a retroactive effect on the accounts and transfer of the group
  • Accounts closed for the transfer to the OPCI
  • Calculation of the transfer value relative to the contribution to the OPCI
  • Option for the SIIC regime within 4 months of the last close and determination of the Exit Tax (19%)
  • Everything merged within a single subsidiary structure of the OPCI
  • Assistance with consolidating the group under IFRS and studies in the consequences of the restructuring and the change of tax regime

 

Purchase/resale activity (property trader) by a foreign structure

  • Supporting a Luxembourg structure of a US investment fund during the acquisition of a portfolio of four assets in France valued at €48m under the purchase/resale regime (property trader)
  • Registration with the center of non-residents in terms of IS and VAT
  • Filing of option letters for the VAT on building rents
  • Management of the challenge of VAT in the purchase/resale regime (deduction of VAT)
  • Processing the accounts for purchase/resale operations and monitoring stock valuations
  • Quarterly financial reports in Lux GAAP and US GAAP – management of restatements

 

Complex acquisition of a CBI contract and a construction lease under the SIIC/OPCI regime

  • A repurchase for the benefit of a British investment fund through a leasing-agreement SPV for a logistics asset being sublet, estimated at €50m with a transfer of the construction lease agreement rights to the terrain.
  • Processing the accounts for the lease agreement acquisition
  • Calculation and accounting of special depreciation allowances on the lease agreement
  • Quarterly reporting under IFRS
  • Periodic valuation of the fair value of the lease agreement and construction lease.
  • Calculation of the group’s ANR in view of determining the quarterly net asset value of the holding SPPICAV

 

“Our team of employees specializing in Real Estate Investment have developed a recognized multidisciplinary approach in order to offer a comprehensive service”

Daniel Wickers

Partner

 

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Doing Business in France

 

Multi-sectoral accounting

 

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