Who is Care Property Invest?

Care Property Invest is the new corporate name of the Company Serviceflats Invest. This name change has (among other matters) been approved by the extraordinary general meeting of 19 March 2014.

Since 25 November 2014, Care Property Invest has the statute of a public regulated real estate company (public RREC) under Belgian law.

What happened to my Serviceflats Invest shares?

 

Since 24 March 2014, each “Serviceflats Invest” share is automatically represented by 1,000 “Care Property Invest” shares. On 19 March 2014, the extraordinary general meeting of the Company has approved (besides the name change) the share split of one share into one thousand (1,000) shares.

Each share in the Company, coupon no 18 attached, will be represented as from 24 March 2014 by 1,000 shares Care property Invest, with coupon no 1 attached (on 24/03/2014: 10,210,000 (split) shares). The split shares have the same rights, though in proportion per split action (1/1,000). As a result, the share split is completely neutral and the position of the shareholders will in no way be diluted. The share spit stimulates the liquidity of the share as well as the accessibility and the attractiveness of it (In particular for private shareholders), what is deemed to be important for the Company and its shareholders.

 

For more information: General meeting

How do I become a Care Property Invest shareholder?

The ordinary Care Property Invest shares are listed on the Euronext Brussels continuous stock exchange and can be purchased by placing a stock exchange order.

The current stock price can be consulted through Nyse’s Euronext Brussels website, under the new product name Care Property Inv., ISIN code BE0974273055 (CPINV).
BE0974273055-XBRU/quotes
History of the distributed dividend:

2017 (**)€ 0.68 (€ 0.578)11.43 % (9.72 %)

Financial year Expressed in nominal  gross gross (net) (*) return in % compared to the issue price (€5,949.44 or €5.95 after the share split of 24/03/2014) (*)
1996 €339.12 6,22%
1997 €338.37 5,4 %
1998 €299.16 5,03 %
1999 €304.61 5,12%
2000 €354.66 5,96%
2001 €388.61 6.53%
2002 €411.76 6.92%
2003 €458.14 7.70%
2004 €471.97 7.93%
2005 €475.70 8.00%
2006 €485.00 8.15%
2007 €490.00 8.24%
2008 €505.00 8.49%
2009 €505.00 8.49%
2010 €505.00 8.49%
2011 €505.00 8.49%
2012 (*) €550.00 (€467.50) 9.24 % (7.86%)
2013 (**) €0.63 (€0.54) 10.59% (9.00 %)
2014 (**) €0.63 (€0.54) 10.59% (9.00%)
2015 (***) €0.63 (€0.54) 10.59% (9.00%)
2016 (**) €0.63 (€0.54) 10.59% (9.00%)
2017 (**) €0.68 (€0.578) 11,43% (9,72%)

(*) As from 1 january 2013 the dividend has been subject to a withholding tax rate of 15%.

(**) After the share split of 24/03/2014.

(***) See press release 30/11/2015 (interim dividend)

When does the Annual General Meeting of Shareholders take place?

In principle, every last Wednesday of May: 29 May 2019, …

See our Financial calendar for the exact date.

Favourable tax rate?

The dividends of Care Property Invest (before Serviceflats Invest) are subject to a withholding tax rate of 15%, instead of the uniform rate of 27%.

Which credit institutions are authorized to issue the certificate for exemption from inheritance taxes and what is the content of this certificate?

 

Belfius Bank, BNP Paribas Fortis, KBC Bank, Petercam and VDK Spaarbank are authorized to deliver the certificate in accordance with an agreement concluded for that purpose. This certificate must be drawn up by the banking institution in a manner that complies with Article 11 of the Decree of the Flemish Government of 3 May 1995 regulating the exemption for inheritance tax related to the social rights in companies established in connection with the realization and / or financing of investment programs for service flats, as amended by the Decree of the Flemish Government of 21 December 2012 containing various provisions concerning finances and budget. The full text of these decisions can be found in this document (available in Dutch only).

Update: Extract Flemish Codex Taxation – art. 2.7.6.0.1. (available in Dutch only)

Example of such a certificate (available in Dutch only)

Should I declare the received dividends from the Care Property Invest share taxable as movable income?

No, since the deduction of withholding tax on dividends granted after 1 January 2013 is exempt, the taxpayers subject to the individual income tax are not obliged to state this income in their annual declaration.

What are the conditions for enjoying exemption from inheritance tax?

For inheritances that open in the Flemish Region an exemption from inheritance tax is granted, provided that a number of conditions have been met.

The exemption from inheritance tax depends on a number of conditions:

  • The holder of the shares must have acquired the shares no later than in the year 2005.
  • The holder of the shares must have acquired the shares no later than in the year 2005.
  • Under penalty of forfeiture, the exemption will only be effectively obtained insofar as
    • the shares are mentioned in the declaration of the estate;
    • the exemption is expressly requested;
    • a valid certificate (by credit institution authorized, in order to prove that all conditions have been met) is attached to the declaration.

The relevant excerpt from the Flemish Codex Taxation (Article 2.7.6.0.1) can be found in this document.

Do I need to have shares of Care Property Invest in order to be able to live in a service flat realised by Care Property Invest (formerly Serviceflats Invest)?

No: anyone can register with the operator (PCSW or asbl) with a request to be included on the waiting list of which the order is determined by the regulations laid down by the operator (e.g. residents own municipality have priority over non-residents, people over 75 have priority over younger seniors). Care Property Invest cannot intervene in this respect and the allocation of flats is done entirely autonomously by the operators. One exception to this rule: shareholders who meet certain conditions are entitled to   priority residential rights : see next question.

What is the priority residential right that is connected to the possession of 10,000 shares of Care Property Invest (before the share split of 24/3/2014 10 shares of Serviceflats Invest)?

This right means that (subject to compliance with all conditions) the shareholder has the priority on the waiting list of a project of service flats designated by him at a maximum daily price of €24.24 (indexation calculated up to and including February 2019). If the usual daily price determined by the operator is higher than the maximum daily rate for residential beneficiaries, this difference will be adjusted by Care Property Invest.

What are the modalities linked to the priority residential right?

The modalities of the priority residential right can be found in this document: Modalities of priority residential right CP Invest (available in Dutch only).

Note: The share split approved by the Extraordinary General Meeting of 19 March 2014 is neutral for the right of first refusal. The conditions for (continuing to) benefit from this right of residence will (mutatis mutandis) remain the same, on the understanding that these conditions have been adjusted in a purely technical manner as a result of the share split. For example, after completion of the share split (on 24 March 2014), the number of shares to be able to (continue to) benefit from the right to priority residence (10 shares before the share split) is currently 10,000 shares.

When can I, as a shareholder, exercise my priority residential rights?
  • from 1/1/2005 to 31/12/2020
  • per 10,000 shares Care Property Invest (*)
  • the 10,000 shares must be owned for at least 5 years and remain owned for the duration of the stay.
  • be 75 years old

The modalities of the priority residential rights can be found here:
Modalities priority residential rights

(*) The conditions for (continuing to) benefit from thesepriority residential rights will remain the same (mutatis mutandis), on the understanding that these conditions will be adjusted in a purely technical manner as a result of the share split. For example, the relevant number of shares to be able to (continue to) benefit from the priority residential rights after the share split (10 shares before the share split) will be 10,000 shares, in order to reflect the split ratio. (The extraordinary general meeting of shareholders approved the share split on 19 March 2014. More information about the share split can be found in the document “Information Bulletin” and in the Investing section – General meeting – BAV 19.03.2014.)

What services are included in the maximum daily price paid by shareholders entitled to priority residence?

What services are included in the maximum daily price paid by shareholders entitled to priority residence?

  • the possibility to call for assistance 24 hours a day;
  • cleaning of the exterior of the building (facades, windows, roofs) and of the common areas (entrance, hallways, staircases, elevator, laundry room, relaxation area, etc.) within the building;
  • the maintenance of technical installations and plantations ;
  • the fire insurance of the entire service flats building (not the furniture);
  • the connection to utilities other than telephone/tv.

Les services optionnels qui doivent également être offerts par l’opérateur ne sont pas inclus et sont facturés aux résidents séparément et selon la livraison et le calcul du prix applicable :

  • one (hot) meal per day;
  • fire insurance of the furniture of the service flats;
  • cleaning service;
  • organisation of temporary home nursing, family and elderly assistance, and paramedical care.

The actual daily price may also include other services, e.g. water consumption, which costs must then be paid separately by the person entitled to housing.

What happens to the partner if the person entitled to priority residential rights moves to a residential care centre or dies?

In that case, the partner can continue to live in the service flats even if she or he is not 75 years of age.

Where are the projects realized by Care Property Invest (formerly Serviceflats Invest) and who operates them?

See the section ‘New real estate portfolio‘ and ‘initial investment programme of 2.000 service flats’ on this website.

How is the priority residental right implemented in practice?
  • from 1/1/2005 to 31/12/2020
  • by registered letter to Care Property Invest nv, Horstebaan 3, 2900 Schoten, upon presentation of a number of documents proving that the conditions for the priority residental right have been met.

A model letter and type forms to assemble a complete file can be found here: Application for priority residential right and appendices (available in Dutch only).  Please fill in the requested information as completely as possible. These shall be treated as confidential. After receiving your written request, you will receive a letter of confirmation and further instructions on how to proceed..

  • within one month of receiving this letter, Care Property Invest will provide a list of the projects realised
  • shareholder indicates preferred list
  • The first available service flat of the preferred list is offered to the shareholder
  • The offer must be accepted within one month

The modalities of the priority residental right can be found here: Modalities of priority residential right CP Invest (available in Dutch only).

Information on the priority residental right can also be obtained from the Company’s secretariat (tel. 03/222.94.94).

Where can I find an overview of all the recognised service flats in my neighbourhood, including those not realised by Care Property Invest (formerly Serviceflats Invest)?
How did the collaboration with the care providers (PCSW or non-profit organisations) develop for the 2000 flats investment programme?

Within the investment programme of 2000 flats, which has now been completed, projects of service flats were established for PCSWs and social non-profit organisations, whereby the cooperation with the Company was laid down in an agreement of real estate leasing.

The lease is based on a leasehold on the building which commences after the project has been realised on the plot of land that was made available to Care Property Invest (the former Service Flats Invest) by the PCSW or the non-profit association through a right of superficie.  The PCSW (or possibly the municipality) or the non-profit association owns or leases a plot of land for construction purposes and grants Care Property Invest a right of superficie for a period of 30 years. At the end of the 30-year period, the PCSW or the non-profit association owes Care Property Invest a final installation fee equal to the nominal amount of the investment cost in order for the PCSW or the non-profit association to become the owner of the flats. The amount of the final building rights fee is neither revised nor indexed. This remuneration represents the repayment of the capital invested by Care Property Invest. After completion of the service flat building, a leasehold period of 27 years starts during which the PCSW or the non-profit association has full enjoyment of the building and is fully responsible for its operation as a service flat building and this against payment of a monthly canon per flat. The canon represents the interest paid on the capital invested by Care Property Invest and is indexed annually. During the bridging period after the end of the leasehold period until the end of the 30-year right of superficie period, a lease agreement is in effect during which the PCSW or the non-profit association owes a remuneration in accordance with the market interest rates applicable at that time.

Are any subsidies granted by the Flemish Community?

The PCSW or the non-profit organisation that had a project of service flats constructed with the Company within the investment programme of 2000 flats, receives therefore from the Flemish Community a subsidy of € 961.83 per flat and per year, and this during 18 years as from the first quarter of the year following the final recognition of the service flats (this subsidy is included in the General Agreement between the Company and the Flemish Government pursuant to the subsidy decision of 3 May 1995 and amended and completed by the subsidy decision of 30 November 2001). For leasing agreements concluded as from 1 January 2007, the initiators will receive an annual subsidy of € 1,140.43 for a period of 18 years. (Decision in principle of the Flemish Government of 14 March 2008, laid down in the addendum to the aforementioned General Agreement signed on 22 July 2008).

To date, after the realisation of 2,000 flats, the Flemish Government has not promised any further subsidies.

 

FAQ