13 Investment property under construction
| | | 2017 | | 2016 |
At the beginning of the year | | 13,166 | | 195,182 |
Investments | | 14,764 | | 21,033 |
Transfer to investment property | | (14,076) | | (232,447) |
Transfer from investment property | | - | | - |
Net gain (loss) from fair value adjustments on investment property under construction | (1,913) | | 29,398 | |
In profit or loss | | (1,913) | | 29,398 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
Total investment property under construction (level 3) | | 11,941 | | 13,166 |
Lease incentives | | - | | (455) |
At the end of the year | | 11,941 | | 12,711 |
| | 2017 | 2016 |
Investment property under construction at fair value | 11,941 | 12,711 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 11,941 | 12,711 |
Investment property is not (re)developed within the Retail Fund but via external parties or within Bouwinvest Development B.V. or Bouwinvest Retail Development B.V.
Investments and investment property under construction | 2017 | 2016 |
Experience | - | 12,825 |
Convenience | 14,764 | 8,208 |
Other | - | - |
Total investments and investment property under construction | 14,764 | 21,033 |
The investment property under construction is valued by external valuation experts.
Transfers to investment property | 2017 | 2016 |
Amsterdam (2016: Rosmalen) | (14,076) | (232,447) |
Total transfers to investment property | (14,076) | (232,447) |
The significant assumptions with regard to the valuations are set out below.
| | 2017 | 2016 |
Gross initial yield | 7.0% | 6.7% |
Net initial yield | 6.4% | 6.0% |
Long-term vacancy rate | 0.3% | 0.6% |
Average 10 – year inflation rate (IPD Nederland) | 0.5% | 1.0% |
Estimated average percentage of completion | 61.0% | 82.0% |
Current average rent (€/m²) | 228 | 199 |
Construction costs (€/m²) | 3,558 | 588 |