| | | 2015 | | 2014 |
At the beginning of the year | | 207,867 | | 146,945 |
Investments | | 52,723 | | 30,900 |
Transfer to investment property | | (85,239) | | (9,511) |
Transfer from investment property | | - | | 9,279 |
Net gain (loss) from fair value adjustments on investment property under construction | 19,831 | | 30,254 | |
In profit or loss | | 19,831 | | 30,254 |
In other comprehensive income | | - | | - |
Transfers out of level 3 | | - | | - |
Total investment property under construction (level 3) | | 195,182 | | 207,867 |
Lease incentives | | (2,131) | | - |
At the end of the year | | 193,051 | | 207,867 |
| | 2015 | 2014 |
Investment property under construction at fair value | 193,051 | 207,867 |
Investment property under construction at amortised cost | - | - |
As at 31 December | 193,051 | 207,867 |
Investment property is not developed within the Retail Fund but via external parties or within Bouwinvest Development B.V. Investment property under construction relates to Damrak, Mosveld, Stadionplein (Amsterdam), Goverwelle (Gouda) and Molenhoekpassage (Rosmalen).
Investments and investment property under construction | 2015 | 2014 |
High street retail | 21,629 | 30,900 |
Shopping centres | 31,094 | - |
Other retail location | - | - |
Total investments and investment property under construction | 52,723 | 30,900 |
The investment property under construction is valued by external valuation experts.
The significant assumptions made relating to the valuations are set out below.
| | 2015 | 2014 |
Gross initial yield | 4,75% - 7,5% | 4.3% - 8.2% |
Net initial yield | 4,5% - 6,8% | 4.0% - 6.9% |
Long-term vacancy rate | 0.0% | 0.0% |
Average 10 – year inflation rate (IPD Nederland) | 1.5% | 1.9% |
Estimated average percentage of completion | 72.0% | 49.1% |
Current average rent (€/m2) | 319 | 360 |
Construction costs (€/m2) | 2,218 | 2,325 |