| | | 2019 | | 2018 |
At the beginning of the year | | 210,857 | | 127,432 |
First time adoption IFRS16 | | 67,990 | | |
Transfer from investment property | | - | | - |
Investments | | 95,254 | | 81,117 |
Net gain (loss) from fair value adjustments on investment property under construction | 35,389 | | 2,308 | |
In profit or loss | | 35,389 | | 2,308 |
In other comprehensive income | | | | - |
Transfer to investment property | | (146,366) | | - |
Transfers out of level 3 | | - | | - |
Movement of right of use ground leases | | 56 | | |
At the end of the year | | 263,180 | | 210,857 |
The right of use of land is included as an integrated part of the investment property under construction. To compare the externally appraised values of the Investment property under construction the lease liabilities are deducted from the Total investment property value.
| | 2019 | 2018 |
Investment Property | 263,180 | 210,857 |
Less: right of use assets | (56,355) | - |
Valuation as per internal valuation | 206,825 | 210,857 |
Investment property is not (re)developed within the Office Fund but via external parties or within Bouwinvest Office Development B.V. As at 31 December 2019 the investment property under construction relates to Hourglass (Amsterdam), and Central Park (Utrecht).
The net valuation gain (loss) for the year included a positive fair value adjustment of € 35,389 (2018: € 2,308) relating to investment property under construction that is measured at fair value at the end of the reporting period.
The investment property under construction is valued by external valuation experts.
Investments | 2019 | 2018 |
Amsterdam | 72,287 | 45,563 |
Rotterdam | - | - |
Utrecht | 22,967 | 35,554 |
The Hague | - | - |
Total investments | 95,254 | 81,117 |
The significant assumptions with regard to the valuations are set out below.
| | 2019 | 2018 |
Gross initial yield | 3.9% | 5.4% |
Net initial yield | 3.8% | 4.0% |
Long-term vacancy rate | 0.0% | 0.0% |
Average 10-year inflation rate (NRVT) | 0.4% | 0.5% |
Estimated average percentage of completion | 50.4% | 38.4% |
Current average rent (€/m²) | 287 | 336 |
Construction costs (€ per m²) | 5,291 | 4,121 |