23. Lease liabilities

The lease liabilities can be specified as follows:

 

2019

2018

Land leases

127

-

Car leases

2

-

Office rental contracts

1

-

Total

130

-

As of 1 January 2019 IFRS16 is implemented in the balance sheet and P&L. The impact is €130 million. This includes land leases (€127 million), car leases and rent of offices (€3 million).

Land lease liabilities

The land liabilities are calculated based on a perpetual view. These land leases require monthly, quarterly, (semi) annual payments if the lease obligation is not redeemed for a certain time frame. For some land leases, a variable component is applicable based on an index. The lease liabilities are reassessed and re-measured after a new index is applicable or the lease payments are changed after a certain time frame by the lessor based on contractual terms.

The assumptions are based on the value of the contracts, or in case of the land leases based on value of the ground (WOZ) x increase factor (market increase). The weighted average discount rate used in 2019 by Vesteda for discounting the lease payments is 2.62%.