1. © Copyright IPD 2004 Director, Equity Property Databank Ltd Brussels, 22 November 2005 The BEVAK in an international environment Hans Op ‘t Veld

2. 1 Topics Listed property companies are growing worldwide Bevak structure is relatively attractive to investors Availability of product is an issue particularly going forward

3. 2 The listed property share markets are young 1960 Introduction US Real Estate Investment Trust 1991 Start of REIT ‘Boom’ 2001 Introduction of Euro/Asian structures 2003 Introduction SIIC (France) 1992/4 European Real Estate Crisis 1995 Introduction BEVAK 1997 Asian Financial Crisis

4. 3 The European market has grown sub- stantially in the last few years… Size of European listed property share market 2003-2005 capitalisation in € millions Bron: FTSE/EPRA

5. 4 …with tax transparent structures becoming the standard in the market CountrySinceName New Zealand1956Property Trust United States 1960Real Estate Investment Trust Netherlands1970Fiscale Beleggingsinstelling Australia1971Listed Property Trust South-Africa1981Property Unit Trust Brasil1993Fundos de Investimento Imobiliario Malaysia1993Real Estate Investment Trust Canada1994Real Estate Investment Trust Italy1994Fondi di Investimento Immobiliare Belgium1995Societe d'Investissement a capital fixe Turkey1998Gayrimenkul Yat Singapore1999Singapore Real Estate Investment Trust Japan2000Japanese Real Estate Investment Trust South Korea*2001Korean Real Estate Investment Trust Austria2003Immobilien-Investmentfonds[gesetz] (ImmoInvFG) France2003Societe d'Investissements immobiliers cotees Hong Kong2003Hong Kong Real Estate Investment Trust Taiwan2003Real Estate Investment Trust Puerto Rico1972/2000Real Estate Investment Trust United Kingdom**2006UK Real Estate Investment Trust Germany**2006German Real Estate Investment Trust * Various structures exist ** Introduction expected within one year

6. 5 Tax transparent structures have become more important through time Percentage of tax transparent listed property companies through time % of total market capitalization, June 1994 – September 2005

7. 6 Property shares are not equally distributed throughout Europe UK 34% France 12% Spain 4% Switzerland 6% Germany 7% Belgium 8% Netherlands 9% Sweden 10% Other Europe Breakdown by companies % of total, 100% = 86 UK 44% France 17% Netherlands 13% Spain 5% Sweden 5% Other Europe Breakdown by market capitalisation 100% = € 97,4 miljard * Source: FTSE/EPRA/NAREIT

8. 7 REITs do outperform tax paying property companies Total return index in local currencies 06/30/1994 = 100

9. 8 Tax transparency is seen to be a driver of market growth Transparant structure not present Transparent structure for publicly listed property companies Transparant structure for non-listed and/or institutional investments Transparent structure to be introduced in near future

10. 9 Topics Listed property companies are growing worldwide Bevak structure is relatively attractive to investors Availability of product is an issue particularly going forward

11. 10 Bevak is relatively well positioned to compete with other structures 1.Borrowing level 2.Activities 3.Shareholder requirements 4.Distribution Performance drivers Ceiling to borrowing level should not hamper growth Ability to employ operating activities (development) is crucial to returns Shareholder requirements should enable liquidity and free float Distributions need to be at high levels to mimic income characteristics of real estate RemarksFit 

12. 11 Ceiling to borrowing of Bevak is well within acceptable levels CountryTransparantTaxed Australia27.63%34.92% Austria46.12%40.39% Belgium25.53% Canada57.43%74.25% Finland49.07% France42.74%37.40% Germany62.07% Hong Kong21.56% Italy42.54% Japan30.31%51.41% Malaysia30.92% Netherlands38.39% New Zealand31.54% Philippines19.80% Singapore28.66%29.24% South-Africa37.00% Spain49.60% Sweden61.95% Switzerland47.54% Thailand79.85% UK51.93% USA57.34%59.81% Borrowing levels of tax paying companies are close to those of tax transparent companies Average levels of borrowing are typically in the range of 30-45% loan-to-value Current average borrowing levels does not suggest structure to limit opportunities Remarks Average borrowing levels

13. 12 Activities are of key importance to performance Not permitted 39% Permitted 22% Portfolio only limited 22% Stapled company 17% Permission of development activities in % of structures around the world Is it good or bad to be limited in activities??

14. 13 Shareholder requirements do not support free float and liquidity in Belgian market Minimum stock market quotation of only 30% of shares outstanding Current free float is restricted, especially for the smaller companies Trading volumes are subdued (if not prohibitive for institutional investors) Remarks Free float companies included in EPRA index Europe Befimmo100% Cofinimmo 75% Intervest Offices 50% Leasinvest Real Estate 75% Warehouses de Pauw 75%

15. 14 Distribution requirements provide room for growth Company will be able to use earnings for reinvestment Passing through distributions might not be required by investors, who are at risk of lowering allocation to real estate Growth will come through in NAV Tax transparency will require passing on dividends quickly Investors will judge companies on level of dividend payments Payment pattern with regular dividends improves correlation with underlying real estate Distribution requirements prevent company from making wrong allocation decisions Distribution level should be highDistribution level should be low

16. 15 Topics Listed property companies are growing worldwide Bevak structure is relatively attractive to investors Availability of product is an issue particularly going forward

17. 16 Future will see ‘Euro-REIT’ replace structures, creating a level playing field Domestic / holding Abroad / portfolio Country 1 Country 2 Country 3 Home country Source tax Investor Withholding Tax Compensation for source tax Investor

18. 17 Product in Belgium is relatively limited in scope Office Retail Residential Industrial Breakdown of market capitalisation in % of free float* Source: FTSE/EPRA/NAREIT

19. 18 Subsidiaries are poised to leave market… Euro-REIT will further limit product due to subsidiaries and limited size Improved liquidity Better chance of immproved valuation More interest of analysts, investors and media Higher index weight …whilst drive to grow is given another boost

20. 19 New sectors would offer wider choice Self-storage Healthcare Hotels Golf courses Car dealerships Prisons Movie theaters Specialties Shurgard

21. 20 Conclusions Bevak is a relatively attractive regime Liquidity and product availability are biggest challenges to market Other markets show ability to broaden scope of (listed) property investments

22. 21 © Copyright IPD 2004 Equity Property Databank Hans Op ‘t Veld, Director hans.optveld@epdatabank.com +44 (0)20 7643 9323 Equity Property Databank Ltd 7/8 Greenland Place London NW1 0AP United Kingdom Switch: +44 (0)20 7482 5149 Fax: +44 (0)20 7267 0208 http://www.epdatabank.com