13 Investment property under construction

At the beginning of the year57,21360,146
Transfer to investment property(114,467)(95,399)
Net gain (loss) from fair value adjustments on investment property under construction5,7964,487
In profit or loss5,7964,487
In other comprehensive income- -
Transfers out of level 3- -
At the end of the year65,89657,213
Download XLS

Investment property under construction at fair value65,89657,213
Investment property under construction at amortised cost- -
As at 31 December65,89657,213
Download XLS

The Fund has an agreement with Bouwinvest Development B.V., which develops part of the investment property for the Fund. Investment property under construction relates to Feniks en Het Baken (Amsterdam), De Halve Maen (Amsterdam), Vlondertuinen ('s-Hertogenbosch), Het Nieuwe Landgoed (Ede) and Summertime (Amsterdam). Third-party investment property under construction include Deo Neo (Haarlem), Brandevoort (Helmond), Meysters Buiten (Utrecht), Marquant (Pijnacker), Veemarkt (Utrecht), CityPrince (The Hague), De Statendam (Amsterdam) and Stadionplein (Amsterdam).

The total gain (loss) for the year included an unrealised gain of € 5,796 (2013: € 4,487) relating to investment property under construction that are measured at fair value at the end of the reporting period.

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

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

Mid East8,5499,106
Non-core regions20,357-
Total investments117,35487,979
Download XLS

Transfers to investment property20142013
Mid East(12,536)(12,471)
Non-core regions- -
Total transfers to investment property(114,467)(95,399)
Download XLS

The significant assumptions made relating to the valuations are set out below.

 RandstadMid EastBrabantstadTotal
Gross initial yield5.0 - 6.2%5.5%5.3%5.0 - 6.2%
Net initial yield3.9% - 4.9%4.6%4.7%3.9% - 4.9%
Long-term vacancy rate1.0%2.5%1.6%1.1%
Long-term growth rental rate2.7%2.7%2.4%2.6%
Average 10-years inflation rate (IPD Nederland)1.9%1.9%1.9%1.9%
Estimated average development profit on completion(1.3)%7.0%(9.2)%(1.3)%
Estimated average percentage of completion27.6%66.8%62.8%30.0%
Current average rent (€/m2)12.476.987.3411.62
Construction costs (€/m2)2,774.831,405.061,747.212,575.16
Download XLS

 RandstadMid EastBrabantstadTotal
Gross initial yield5.3%5.9%5.5%5.4%
Net initial yield4.3%4.7%4.7%4.4%
Long-term vacancy rate1.1%1.7%0.4%1.1%
Long-term growth rental rate3.2%2.7%2.9%3.1%
Average 10-years inflation rate (IPD Nederland)2.1%2.1%2.1%2.1%
Estimated average development profit on completion(1.2)%(11.5)%(9.5)%(3.2)%
Estimated average percentage of completion47.7%59.0%81.9%52.6%
Current average rent (€/m2) 12.85 4.89 15.9311.20
Construction costs (€/m2) 2,931.14 1,119.27 3,856.90 2,571.21
Download XLS

  • Share this article