15. Investment property under construction

 

2018

2017

As at 1 January

257

135

Acquisitions property under construction

121

-

Capital expenditure on property under construction

210

216

Transfer to investment property

(385)

(80)

Revaluation

74

22

Transfer from provisions

(20)

(26)

Transfer to PP&E

-

(10)

As at 31 December

257

257

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 proceeds from the sale of individual units.

The future costs until completion amount to €126 million (2017: €138 million). This amount is included in construction contracts in Note 30.