Note 17 Investment property
After a revision of Peab’s property portfolio it was decided that some property previously reported as project and development property, i.e. inventory properties, will instead be classified as investment property, in the case where there is no plan to divest the property and it is expected to remain in the Group for the foreseeable future. For this reason, as of 1 January 2017 properties for a total value of SEK 629 million have been reclassified as investment property.
|Group 2017, MSEK||Investment property||Construction in progress||Total|
|Opening acquisition value||–||–||–|
|Closing accumulated acquisition value||819||117||936|
|Closing accumulated depreciation||-55||–||-55|
|Closing accumulated write-downs||-10||–||-10|
|Closing recognized value||754||117||871|
1) Write-downs are reported in the following line of the income statement:
Accumulated fair value
At year-end the accumulated fair value amounted to 918 MSEK.
Valuing technique, hierarchy and significant unobservable inputs
The valuation of the above fair values are classified on level 3 in the fair value hierarchy. The valuation is built on an internal valuation model. As a complement to this valuation annual external market valuations are obtained for a number of objects. Fair value has been determined through a combination of applying the location/price method, based on reported comparable purchases and the yield method.
Effect on profit/loss for the year
|Direct costs for investment property that generated rent during the year (operational and maintenance costs, property tax and ground rent)||-28|
|Direct costs for investment property that did not generate rent during the year (operational and maintenance costs, property tax and ground rent)||-4|