Property sales

Question discussed at the 2013 general meeting

In response to the Bank’s plans for selling its sports facilities at Sint-Agatha-Berchem, the Sint-Agatha-Berchem municipal authority informed the Bank that it wishes to acquire the whole site and to make it available to its residents, if necessary via a compulsory purchase procedure. The municipality submitted a bid to the Bank within the range of the two estimates that the Bank commissioned independently.

Taking account of the price offered by the municipality and the financial and legal risks and uncertainties inherent in a possible compulsory purchase procedure, the Bank considers it appropriate in this exceptional case to waive the usual public sale procedure and proceed to negotiate with the municipal authority. The Bank has every confidence that this will result in a fair sale price.

In accordance with the Bank’s policy on reserves and dividends, the net proceeds from property sales are treated in the same way as revenue from the statutory portfolio. This means that 50 % of these net proceeds is paid out as dividends and the other 50 % is added to the reserves.

Net proceeds means the proceeds from the sale after deduction of all costs and after taking account of the net book value, corporation tax and any replacement investments.