Legal structure and principal activities
Bouwinvest Real Estate Investment Management B.V. (‘Bouwinvest’ or ‘the company’), domiciled in Amsterdam, is a private company with limited liability incorporated on 9 October 2002. The Chamber of Commerce number of the company is 34180506. Bouwinvest’s objective is to provide real estate investment services to the Stichting Bedrijfstakpensioenfonds voor de Bouwnijverheid (bpfBOUW), to third parties and to bpfBOUW group companies as defined in article 2:24b of the Dutch Civil Code. All shares in the company are held by bpfBOUW. The company forms part of a group, headed by bpfBOUW in Amsterdam, the Netherlands. The financial information of the company has been recorded in the financial statements of bpfBOUW. Copies are available at the trade register of the Chamber of Commerce as well as on the website bpfBOUW.
Bouwinvest is an investment manager specialised in real estate for institutional investors. Bouwinvest manages five Dutch sector funds. Bouwinvest also manages a separate mandate for international investments in Europe, North America and the Asia Pacific region. In the Netherlands, the management services cover the entire real estate chain, from acquisition and (re)development through asset management and disposal. For the international investments, the management services consist mainly of fund selection and monitoring the performance of the selected fund managers and funds.
Basis of preparation
The financial statements have been prepared in accordance with Part 9, Book 2 of the Dutch Civil Code.
The legal entity is subject to the medium-sized company annual accounts regulations as defined in article 2:397 of the Dutch Civil Code.
Accounting policies
Valuation of assets and liabilities and determination of the result take place under the historical cost convention. Unless presented otherwise at the relevant principle for the specific balance sheet item, assets and liabilities are valued according to the cost model.
Income and expenses are accounted for on accrual basis. Profit is only included when realised on the balance sheet date. Losses originating before the end of the financial year are taken into account if they have become known before preparation of the financial statements.
The financial statements of the company are presented in thousands of euro (€), unless otherwise stated.
Financial instruments
Financial instruments include primary financial instruments, such as receivables and payables.
The notes to the specific items of the balance sheet disclose the fair value of the related instrument if this deviates from the carrying amount. The carrying amounts of all financial instruments approximate the fair value. If the financial instrument is not recorded in the balance sheet, the information on the fair value is disclosed in the notes to the ‘Contingent rights and obligations’.
For the principles of primary financial instruments, reference is made to the recognition per balance sheet item.
Intangible fixed assets
Equipment is stated at purchase price less straight-line depreciations, calculated while taking into consideration the estimated economic life of the assets in question, and, if applicable, less impairments in value. Acquisitions in the year under review are subject to depreciation according to the proportion of the year they have been held.
Depreciation is over a period of three to five years.
Tangible fixed assets
Equipment is stated at purchase price less straight-line depreciations, calculated while taking into consideration the estimated economic life of the assets in question, and, if applicable, less impairments in value. Acquisitions in the year under review are subject to depreciation according to the proportion of the year they have been held.
Depreciation of equipment is over a period of three to five years.
Financial fixed assets
Participations
When significant influence is exercised, associated companies are valued at net asset value. When no significant influence is exercised, associated companies are valued at cost less impairment, if applicable. With the valuation of associated companies any impairment in value is taken into account.
Current assets
Upon initial recognition the receivables are included at fair value and then valued at amortised cost. The fair value and amortised cost equal the face value. Any provision for doubtful accounts deemed necessary is deducted. These provisions are determined by individual assessment of the receivables.
Deferred tax assets
Deferred tax assets are recognised if it is likely that the temporary differences will be settled in the near future. These deferred tax assets are valued at nominal value and have a short-term nature.
Cash
The cash is valued at face value. If cash equivalents are not freely disposable, then this has been taken into account upon valuation.
Provisions
Provisions are recognised if a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event), payment is probable ('more likely than not'), and the amount can be estimated reliably. If the effect is material, provisions are made that are equal to the present value of the expenditure that is expected to be required for the settlement of the liability.
Deferred tax liabilities
Deferred tax liabilities are recognised for the difference between the fiscal and commercial valuation of the participations. These deferred tax liabilities are valued at nominal value and have a long-term nature.
Current liabilities
Upon initial recognition, the liabilities recorded are stated at fair value and then valued at amortised cost.
Management fee
The management fee is calculated based on the assets under management and project turnover.
Taxes
Corporate income tax is calculated at the applicable rate on the result for the financial year, taking into account permanent differences between profit calculated according to the financial statements and profit calculated for taxation purposes, and with which deferred tax assets (if applicable) are only valued insofar as their realisation is likely.
Notes to the cash flow statement, general principles
The cash flow statement is drawn up according to the indirect method. The funds in the cash flow statement consist of cash and cash equivalents. Cash equivalents can be considered to be highly liquid investments. Interest income and expenses are recognised in the cash flow from ordinary operations.