13 Investment property under construction
| | | 2016 | | 2015 |
At the beginning of the year | | 195,182 | | 207,867 |
Investments | | 21,033 | | 52,723 |
Transfer to investment property | | (232,447) | | (85,239) |
Transfer from investment property | | - | | - |
Net gain (loss) from fair value adjustments on investment property under construction | 29,398 | | 19,831 | |
In profit or loss | | 29,398 | | 19,831 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
Total investment property under construction (level 3) | | 13,166 | | 195,182 |
Lease incentives | | (455) | | (2,131) |
At the end of the year | | 12,711 | | 193,051 |
| | 2016 | 2015 |
Investment property under construction at fair value | 12,711 | 193,051 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 12,711 | 193,051 |
Investment property is not (red)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 | 2015 | 2015 |
Experience | 12,825 | 21,629 |
Convenience | 8,208 | 31,094 |
Other | - | - |
Total investments and investment property under construction | 21,033 | 52,723 |
The investment property under construction is valued by external valuation experts.
The significant assumptions made relating to the valuations are set out below.
| | 2016 | 2015 |
Gross initial yield | 6.7% | 4.8% - 7.5% |
Net initial yield | 6.0% | 4.5% - 6.8% |
Long-term vacancy rate | 0.6% | 0.0% |
Average 10 – year inflation rate (IPD Nederland) | 1.0% | 1.5% |
Estimated average percentage of completion | 82.0% | 72.0% |
Current average rent (€/m²) | 199 | 319 |
Construction costs (€/m²) | 588 | 2,218 |