Property investment company Befimmo has alleged unfair treatment in the Belgian government's allocation process for a joint venture partner to manage a EUR 1.2 bn portfolio of public buildings.
Property investment company Befimmo has alleged unfair treatment in the Belgian government's allocation process for a joint venture partner to manage a EUR 1.2 bn portfolio of public buildings.
Earlier in October the Belgian government suspended its decision to appoint Brussels-based real estate group Cofinimmo to the new closed-ended real estate investment company (Sicafi) after Befimmo and Axa Belgium mounted legal challenges. Befimmo said on 18 October it had taken legal action after it emerged that 'core principles such as equality of treatment of the various bidders and the rules of proper administration had not been complied with.'
The Council of State ruled in favour of one the eight points put forward by Befimmo and suspended the decision to appoint Cofinimmo. Befimmo said the court had logically not considered the validity of the complaints, meaning these points have not been dismissed.
The Belgian government's portfolio will consist of 79 office properties and the platform for the erection of the World Trade centre 4 tower in Belgium. The buildings are leased to the Belgian state building agency for the use of federal ministries or the European Union. The portfolio will be worth €1.2 bn and the joint venture was to be listed next year.
Cofinimmo has expressed confidence that the government decision will ultimately stand and it is pressing ahead with its preparations to purchase the buildings before the end of 2006. 'The State Council motivates its opinion by a formal flaw in the administrative procedure followed but does neither address the content of Cofinimmo’s offer nor the process of negotiations conducted with Cofinimmo,' the company said.