26 Provisions

The non-current provisions are made up as follows:

 

2016

2015

As at 1 January

42

52

Additions

-

4

Decrease

(9)

-

Investments

(15)

-

Transfer to investment property under construction

-

(2)

Transfer from financial assets

-

(12)

As at 31 December

18

42

These provisions are made for developments that will take place in the period up to and including 2018, under uncertain market conditions.

The provisions are related to the contingencies and commitments as referred to in Note 35 for an amount of € 144 million (2015: € 162 million).

In circumstances where provisions for onerous contracts arise at the same time that financial assets are presented at balance sheet date for the related contract, these balances are netted at balance sheet date. In case of a positive balance the net position is presented as a financial asset. In case of a negative balance the net position is presented as a provision. Transfer from financial assets in 2015 of € 12 million related to participation in Leidsche Rijn Centrumplan BV (€ 4 million provided as paid capital and € 8 million provided in loans). In 2016 an additional € 9 million capital contribution was made and € 7 million loan was provided. Leidsche Rijn Centrumplan BV is the development vehicle in which ASR and Vesteda Project Development BV together develop the LRC plan in Utrecht. Vesteda Project Development BV holds 22% in this entity. The provision for the LRC plan amounts to € 46 million (2015: € 54 million), which is netted with a € 28 million (2015: € 12 million) financial asset position, resulting in a net provision of € 18 million (2015: € 42 million). Vesteda only has exposure on the development risk with regard to the residential units in this project, and has made a provision for the expected losses.

In total 561 housing units are involved.

The amendment in the LRC provision from € 54 million year-end 2015 to € 46 million year-end 2016 is caused by multiple reasons: shorter discounting period, estimated investments costs are lower than last year, raise of the expected market value at delivery due to positive developments on the housing market.

The current provisions are made up as follows:

 

2016

2015

As at 1 January

7

2

Additions

8

7

Used

(1)

(1)

Released

-

(1)

As at 31 December

14

7

The provision as at 1 January 2016 relates to an amount of € 6 million related to the settlement of a liability and € 1 million to the change of two existing offices to the new head office De Boel. The provision related to the relocation to the new head office is partly released in 2016.

As at year-end the provision relates to the settlement of a liability (€ 7 million) and to a reorganisation provision (€ 7 million).

The change in the provision is partly recorded in the unrealised result (€ 1 million) and partly in the realised result (€ 7 million).