| | | 2015 | | 2014 |
At the beginning of the year | | 65,896 | | 57,213 |
Investments | | 177,321 | | 117,354 |
Transfers to investment property | | (65,022) | | (114,467) |
Net gain (loss) from fair value adjustments on investment property under construction | 27,384 | | 5,796 | |
In profit or loss | | 27,384 | | 5,796 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
At the end of the year | | 205,579 | | 65,896 |
| | 2015 | 2014 |
Investment property under construction at fair value | 205,579 | 65,896 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 205,579 | 65,896 |
The Fund has an agreement with Bouwinvest Development B.V., which develops part of the investment property for the Fund. Investment property under construction developed by Bouwinvest Development B.V. relates to Feniks & Het Baken (Amsterdam), Stadionplein (Amsterdam) en Vlondertuinen ('s-Hertogenbosch). The other property under construction is being developed by third parties. For a list of the investment property under construction and investment commitments, see Note 20.
The total gain (loss) for the year included an unrealised gain of € 30,867 (2014: € 10,722) relating to investment property under construction that are measured at fair value at the end of the reporting period.
The investment property under construction is valued by external valuation experts.
The specifications of transfers from investments and also the transfers to investment property are set out below.
Investments | 2015 | 2014 |
Randstad | 167,307 | 85,474 |
Mid East | 1,793 | 8,549 |
Brabantstad | 6,708 | 2,974 |
Non-core regions | 1,513 | 20,357 |
Total investments | 177,321 | 117,354 |
Transfers to investment property | 2015 | 2014 |
Randstad | 54,142 | (87,664) |
Mid East | 5,370 | (12,536) |
Brabantstad | 5,510 | (14,267) |
Non-core regions | - | - |
Total transfers to investment property | 65,022 | (114,467) |
The significant assumptions made relating to the valuations are set out below.
2015 | | | | |
| | Randstad | Mid East | Brabantstad | Total |
Gross initial yield | 4.5% - 5.6% | N/A | 5.5% - 5.6% | 4.5% - 5.6% |
Net initial yield | 3.2% - 4.8% | N/A | 4.4% - 5.1% | 3.2% - 5.1% |
Long-term vacancy rate | 5.3% | N/A | 2.5% | 4.8% |
Long-term growth rental rate | 2.5% | N/A | 2.2% | 2.4% |
Average 10-year inflation rate (IPD Nederland) | 1.5% | N/A | 1.5% | 1.5% |
Estimated average development profit on completion | 49.4% | N/A | 22.5% | 45.0% |
Estimated average percentage of completion | 3.8% | N/A | 7.1% | 4.3% |
Current average rent (€/m²) | 13.92 | N/A | 11.92 | 13.51 |
Construction costs (€/m²) | 3,145.42 | N/A | 2,363.64 | 2,983.36 |
2014 | | | | |
| | Randstad | Mid East | Brabantstad | Total |
Gross initial yield | 5.0% - 6.2% | 5.5% | 5.3% | 5.0% - 6.2% |
Net initial yield | 3.9% - 4.9% | 4.6% | 4.7% | 3.9% - 4.9% |
Long-term vacancy rate | 1.0% | 2.5% | 1.6% | 1.1% |
Long-term growth rental rate | 2.7% | 2.7% | 2.4% | 2.6% |
Average 10-year inflation rate (IPD Nederland) | 1.9% | 1.9% | 1.9% | 1.9% |
Estimated average development profit on completion | (1.3)% | 7.0% | (9.2)% | (1.3)% |
Estimated average percentage of completion | 27.6% | 66.8% | 62.8% | 30.0% |
Current average rent (€/m²) | 12.47 | 6.98 | 7.34 | 11.62 |
Construction costs (€/m²) | 2,774.83 | 1,405.06 | 1,747.21 | 2,575.16 |