15 Investment property under construction

 

2017

2016

As at 1 January

135

77

Capital expenditure on property under construction

216

117

Transfer to investment property

(80)

(68)

Revaluation

22

9

Transfer from provisions

(26)

-

Transfer to PP&E

(10)

-

As at 31 December

257

135

As set out in Note 4, in arriving at their estimates of market values, the appraisers used their market knowledge and professional judgment, rather than relying exclusively on comparable historical transaction data.

The fair value of the assets under construction is driven by the net future cash flow generated by the assets, in combination with the discount rate development. The generated cash flow includes the net rental income plus the net sales revenues from selling off individual units.

The costs to come until completion amount up to €138 million (2016: €142 million). This amount is included in construction contracts in Note 31.