This website uses cookies to remember your personal preferences and gather statistics. Click here for more information about cookies.

Yes, I agree No, I do not agree X

Financial statements

13 Investment property under construction

  

2017

 

2016

At the beginning of the year

 

353,078

 

205,579

Investments

 

241,148

 

300,192

Transfers to investment property

 

(232,158)

 

(192,026)

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

100,972

 

39,333

 

In profit or loss

 

100,972

 

39,333

In other comprehensive income

 

-

 

-

Transfers out of level 3

 

-

 

-

At the end of the year

 

463,040

 

353,078

The property under construction is being developed by third parties. For a list of the investment properties under construction and investment commitments, see Note 20.

The net valuation gain (loss) for the year included a positive fair value adjustment of € 105,220 (2016: € 59,889) relating to investment properties under construction that are measured at fair value at the end of the reporting period.

The investment property under construction is valued by independent external appraisers.

 

2017

2016

Investment property under construction at fair value

463,040

353,078

Investment property under construction at amortised cost

-

-

As at 31 December

463,040

353,078

The specifications of transfers from investments and the transfers to investment property are set out below.

Investments

2017

2016

Randstad

177,223

231,436

Mid East

29,647

21,062

Brabantstad

34,278

42,213

Non-core regions

-

5,481

Total investments

241,148

300,192

Transfers to investment property

2017

2016

Randstad

181,056

170,173

Mid East

14,902

14,890

Brabantstad

36,200

-

Non-core regions

-

6,963

Total transfers to investment property

232,158

192,026

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

2017

    
 

Randstad

Mid East

Brabantstad

Total

Gross initial yield

4.4%

4.0%

4.8%

4.5%

Net initial yield

3.9%

4.0%

4.2%

3.9%

Long-term growth rental rate

2.7%

2.5%

2.2%

2.7%

Average 10-year inflation rate (IPD Nederland)

0.5%

0.5%

0.5%

0.5%

Estimated average development profit on completion

34.7%

13.6%

3.8%

29.4%

Estimated average percentage of completion

64.4%

50.1%

44.0%

60.9%

Current average rent per unit (in €)

1,311

906

891

1,218

Construction costs (€/m²)

3,273

1,797

2,126

2,929

2016

    
 

Randstad

Mid East

Brabantstad

Total

Gross initial yield

4.8%

4.9%

5.4%

4.9%

Net initial yield

4.2%

4.2%

4.6%

4.3%

Long-term growth rental rate

2.7%

2.3%

2.1%

2.6%

Average 10-year inflation rate (IPD Nederland)

1.0%

1.0%

1.0%

1.0%

Estimated average development profit on completion

20.3%

(0.6)%

7.6%

17.7%

Estimated average percentage of completion

54.9%

63.2%

66.7%

57.2%

Current average rent per unit (in €)

1,155

1,060

885

1,095

Construction costs (€/m²)

3,298

2,636

2,126

2,993

  • Share this article