Developments among Project developers
Besides the fact that many developers find it impossible to finance new projects adequately, there is an aversion in society against new office buildings because of the problem of empty offices.
Moreover, chain integration (the contractor-developer and the investor-developer) results in a reduction in the number of project developers. A number of project developers have seized on the increasing replacement demand (for reducing the number of unoccupied offices): conversion of offices into, for example, hotels or student accommodation. Anyway, the conversion process is complex and time-consuming, and certainly not applicable to every location.
There are other challenges for today's project developer in the areas of innovation, sustainability, the attracting of alternative forms of finance, and the development of demand-driven real estate concepts. The association of Dutch project developers is the NEPROM.
Mazars adds value
Tax issues, particularly those relating to the burden of VAT and transfer tax, are nearly always complex in the case of project development: what is the tax burden when purchasing old ground or a building site, what is the tax burden if the developer converts an existing building, what are the tax consequences if a new or existing building is (partly) unoccupied, what is the tax burden if the developer sells to an investor, and what are the tax consequences if the investor-developer adds the newly built or renovated object to his own portfolio?
Profit allocation, downward revaluation, and setting off losses for tax purposes also play an important part, especially in the case of a development-investment combination. The staff of Mazars have abundant experience in guiding development processes, and are ready to give you the best advice.
Other Mazars services
In addition to our specialist real estate knowledge, Mazars offers a broad range of services such as accountancy and tax services, and can help you with problems in areas such as strategy, valuation issues, liability, IT, subsidies, training, and personnel policy. Our short communication lines enable us to quickly bring you into contact with the right person. This means that we are able to provide you with concrete, up-to-date advice.