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13 Investment property under construction

  

2019

 

2018

At the beginning of the year

 

12,898

 

11,941

First time adoption IFRS16

 

-

 

-

Investments

 

5,774

 

7,529

Transfer to investment property

 

(18,672)

 

(21,482)

Transfer from investment property

 

-

 

12,898

Net gain (loss) from fair value adjustments on investment property under construction

-

 

2,012

 

In profit or loss

 

-

 

2,012

In other comprehensive income

 

-

 

-

Transfers out of level 3

 

-

 

-

Total investment property under construction (level 3)

 

-

 

12,898

Movement of right of use ground leases

 

-

 

-

Lease incentives

 

-

 

-

At the end of the year

 

-

 

12,898

The right of use of land is included as an integrated part of the investment property under construction. To compare the externally appraised values of the Investment property under construction the lease liabilities are deducted from the Total investment property value.

 

2019

2018

Investment Property

-

12,898

Less: lease liabilities

-

-

Valuation as per internal valuation

-

12,898

Investment property under construction is not (re)developed within the Retail Fund but via external parties or Bouwinvest Retail Development B.V.

The as if completed value of the investment property under construction is determined by external valuation experts.

Investments

2019

2018

Experience

-

-

Convenience

5,774

7,529

Other

-

-

Total Investments

5,774

7,529

Transfers to investment property

2019

2018

Experience

-

-

Convenience

18,672

21,482

Other

-

-

Total transfers to investment property

18,672

21,482

The significant assumptions with regard to the valuations are set out below.

 

2019

2018

Gross initial yield

n/a

6.8%

Net initial yield

n/a

5.6%

Long-term vacancy rate

n/a

6.0%

Average 10-years inflation rate (NRVT)

n/a

0.5%

Estimated average percentage of completion

n/a

26.1%

Current average rent (€/m²)

n/a

208

Construction costs (€/m²)

n/a

1,014

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