Realising and purchasing business premises

Select the right financing for your real estate investment

Realising and purchasing business premises

Select the right financing for your real estate investment

Are you looking to expand and are you considering the acquisition of business premises? Or would you like to realise new business premises to deal with your increased housing needs? There are various financing options available to suit your needs. Find out now which one is best suited to realised the desired growth.

Could real estate leasing be right for you?

If you are looking for an interesting, modern way to finance the acquisition or construction of your commercial property, real estate leasing is an interesting option. This financing method has helped realise many industrial buildings, offices, logistics buildings and commercial property.

As a lessor, KBC acquires collateral security on real estate or realises a building as per your instructions. The real estate is then leased to you. At the end of the lease contract you, as lessee, have the opportunity to take over the collateral security of the business premises. Together we will look into this financing method to see whether this tailored solution suits your requirements.

Finance lease or operating lease?

Lease is a broad concept. Accounting legislation differentiates between financial leasing (on-balance sheet) and operational leasing or renting (off-balance sheet). Finance lease allows the lessee to activate and depreciate the real estate on its balance sheet. Operating lease involves real estate that is included on the balance sheet of KBC in its capacity as lessor. As lessee, you enter the lease payments as rental costs in the income statement.

Your finances in order

The decision to build or purchase business premises is not something you do every day. You need to consider the financial implications in order to make a well-balanced decision on the investment. You may already know that the fees of real estate leasing are generally the same as the fees for similar investment loans. But did you also know that VAT legislation, for example, also plays a role?

In certain cases VAT is due on the lease payments. This allows KBC as the lessor to recoup the VAT. If the lessee is also liable to VAT and the building is used for their professional activity (no sub-letting), then the financing through real estate leasing is VAT neutral.

Invest and optimise

The building or acquisition of business premises involves a lot more than you may think. Consider for instance the various lease types, optimising investment costs through VAT recuperation, indemnifying the long-term control of your own business premises by applying adapted purchase options, etc.

Feel free to contact KBC to discuss and start this process. KBC has the expertise to weigh the pros and cons of the various financing options and optimise your choice. This will provide you with a funding structure tailored to your requirements and the best possible rate.

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