Real estate property
and fair value
VVO Group owned a total of 37,293 (40,760) rental apartments at period end. The Lumo segment accounted for 28,901 (20,019) and the VVO segment for 8,392 (20,741) of these apartments. At the end of the review period, the Group owned apartments in 39 (42) municipalities.
At the end of the review period, the fair value of VVO Group’s investment properties stood at EUR 3.7 (3.8) billion. The fair values include the portfolio held for sale, totalling EUR 183.2 (0.0) million. During the review period, the fair value decreased by EUR 293.9 (73.3) million, mainly due to the selling of investment properties. The change includes EUR 14.1 (26.0) million in net valuation gains on the fair value assessment of investment properties. The fair value of the Group’s investment properties is determined quarterly on the basis of the company’s own evaluation. An external expert gives a statement on the valuation of the Group’s investment properties. The last valuation statement was issued on the situation as on 31 March 2016. The criteria for determining fair value are presented in the Notes to the Interim Report.
At period end, the plot reserve held by the Group totalled about 147,000 floor sq m (115,000 floor sq m) and its fair value was approximately EUR 68.9 (40.5) million.
Investment properties
M€ | 31 Mar 2016 | 31 Mar 2015 | 31 Dec 2015 |
Fair value of investment properties, beginning of period | 3,999.2 | 3,708.8 | 3,708.8 |
Acquition of investment properties *) | 38.8 | 41.7 | 187.1 |
Other investments on investment properties | 4.6 | 7.5 | 45.8 |
Disposals of investment properties | -351.0 | -2.3 | -14.9 |
Capitalised borrowing costs | 0.4 | 0.4 | 2.0 |
Transfer to own use | -0.7 | 0.0 | 0.0 |
Valuation gains/losses on fair value assessment | 14.1 | 26.0 | 70.3 |
Fair value of investment properties, end of period | 3,705.3 | 3,782.1 | 3,999.2 |
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*) incl acquition costs of the new construction projects |
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The fair values include the investment properties classified into Non-current assets held for sale, totalling EUR 183.2 (0.0) million.
