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13 Investment property under construction

  

2018

 

2017

At the beginning of the year

 

127,432

 

44,645

Transfer from investment property

 

-

 

-

Investments

 

81,117

 

28,662

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

2,308

 

54,125

 

In profit or loss

 

2,308

 

54,125

In other comprehensive income

 

-

 

-

Transfer to investment property

 

-

 

-

Transfers out of level 3

 

-

 

-

At the end of the year

 

210,857

 

127,432

 

2018

2017

Investment property under construction at fair value

210,857

127,432

Investment property under construction at amortised cost

-

-

As at 31 December

210,857

127,432

Investment property is not (re)developed within the Office Fund but via external parties or within Bouwinvest Office Development B.V. As at 31 December 2018 the investment property under construction relates to Hourglass, Building 1931 and Building 1962 (Amsterdam), and Central Park (Utrecht).

The net valuation gain (loss) for the year included a positive fair value adjustment of € 2,308 (2017: € 54,125) relating to investment property under construction that is measured at fair value at the end of the reporting period.

The investment property under construction is valued by external valuation experts.

Investments

2018

2017

Amsterdam

45,563

28,662

Utrecht

35,554

-

Total investments

81,117

28,662

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

 

2018

2017

Gross initial yield

5.4%

5.6%

Net initial yield

4.0%

3.9%

Long-term vacancy rate

0.0%

0.0%

Average 10-year inflation rate (NRVT)

0.5%

0.5%

Estimated average percentage of completion

38.4%

N/A

Current average rent (€/m²)

336

359

Construction costs (€ per m²)

4,121

4,005

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