Note 18 Investment property

Group 2018‚ MSEK Investment property Construction in progress Total
Koncernen 2018. Mkr Förvaltningsfastigheter Pågående nyanläggningar Totalt
Opening acquisition value Ingående anskaffningsvärde 819 117 936
Purchases Inköp 59 190 249
Sales/disposals Försäljningar och utrangeringar -588 -16 -604
Reclassification Omklassificering 90 -31 59
Closing accumulated acquisition value Utgående ackumulerade anskaffningsvärden 380 260 640
Opening depreciation Ingående avskrivningar -55 -55
Sales/disposals Försäljningar och utrangeringar 24 24
Depreciation Avskrivningar  -20 -20
Reclassification Omklassificering 10 10
Closing accumulated depreciation Utgående ackumulerade avskrivningar -41 -41
Opening write-downs Ingående nedskrivningar -10 -10
Sales/disposals Försäljningar och utrangeringar 10 10
Reclassification Omklassificering -10 -10
Closing accumulated write-downs Utgående ackumulerade nedskrivningar -10 -10
Closing recognized value Utgående redovisat värde 329 260 589

 

Group 2017‚ MSEK Investment property Construction in progress Total
Koncernen 2017. Mkr Förvaltningsfastigheter Pågående nyanläggningar Totalt
Opening acquisition value Ingående anskaffningsvärde
Reclassification Omklassificering 671 671
Purchases Inköp  148 117 265
Closing accumulated acquisition value Utgående ackumulerade anskaffningsvärden 819 117 936
Opening depreciation Ingående avskrivningar
Reclassification Omklassificering -42 -42
Depreciation Avskrivningar  -13 -13
Closing accumulated depreciation Utgående ackumulerade avskrivningar -55 -55
Opening write-downs Ingående nedskrivningar
Write-downs 1) Nedskrivningar 1) -10 -10
Closing accumulated write-downs Utgående ackumulerade nedskrivningar -10 -10
Closing recognized value Utgående redovisat värde 754 117 871

 

After a revision of Peab’s property portfolio it was decided that some property previously recognized 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.

1) Write-downs are recognized in the following line of the income statement:

MSEK 2018 2017
Mkr 2018 2017
Production costs Kostnader för produktion -10
Total Summa -10

Loan interest of SEK 4 million (5) has been activated during the year.

Accumulated fair value

At year-end fair value amounted to SEK 707 million compared to the recognized value of SEK 589 million. At year-end 2017 fair value amounted to SEK 918 million compared to the recognized value of SEK 871 million.

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 recognized comparable purchases and the yield method.

Effect on profit/loss for the year

Group, MSEK 2018 2017
Koncernen, Mkr 2018 2017
Rental revenue Hyresintäkter 53 65
Direct costs for investment property that generated rent during the year (operational and maintenance  costs, property tax and ground rent) Direkta kostnader för förvaltningsfastigheter som genererat hyresintäkter under perioden (drift- och underhållskostnader, fastighetsskatt och tomträttsavgäld) -21 -28
Direct costs for investment property that did not generate rent during the year (operational and maintenance  costs, property tax and ground rent) Direkta kostnader för förvaltningsfastigheter som inte genererat hyresintäkter under perioden (drift- och underhållskostnader, fastighetsskatt och tomträttsavgäld) -4 -4