REG - Secure Property Dev - Final Results <Origin Href="QuoteRef">SPDI.L</Origin> - Part 3
28/06/2017 07:17
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recognized for tax purposes 2.923.266 483.029
Tax effect of allowances and income not subject to tax (2.530.411) (248.073)
Tax effect of group tax relief (51.711) (8.573)
Tax effect on tax losses for the year 190.224 3.181.833
Tax effect on tax losses brought forward (776.537) (822)
10% additional tax 6.657 7.200
Defence tax 17 2.092
Overseas tax in excess of credit claim used during the year 1.044 166
Prior year tax 916 3.841
Total Tax 174.315 80.188
12. Investment Property
12.1 Investment Property Presentation
Investment Property consists of the following assets:
Income Producing Assets
· GED Logistics is a logistics park comprising 17.756 gross leasable sqm. It is fully let to the German multinational
transportation and logistics company, Kuehne + Nagel (70%) and to a Greek commercial company trading electrical appliances
GE Dimitriou SA (30%). On the roof of the warehouse there is a 1MW photovoltaic park installed with the electricity
generated being sold to Greek Electric Grid on a long term contract.
· EOS Business Park is a 3.386 sqm gross leasable area and includes a Class A office Building in Bucharest, which is
currently fully let to Danone Romania. EOS Business Park was acquired by the Group in October 2014.
· Praktiker Craiova, a DIY retail property was acquired by the Group in July 2015. Situated in a prime location in
Craiova, Romania and it is fully let to Praktiker, a regional DIY retailer. The property has a gross lettable area of 9.385
sqm and is 100% rented until 2025.
· Innovations Logistic Park is a 16.570 sqm gross leasable area logistics park located in Clinceni in Bucharest, which
benefits from being on the Bucharest ring road. Its construction was tenant specific, was completed in 2008 and is
separated in four warehouses, two of which offer cold storage (freezing temperature), the total area of which is 6.395 sqm.
Innovations was acquired by the Group in May 2014 and was 25% leased at the end of the reporting period. As at the date of
issuance of the financial statements occupancy stands at ~60% (Note 36b).
· Terminal Brovary Logistic Park consists of a 49.180 sqm gross leasable Class A warehouse and associated office
space, situated on the junction of the main Kiev - Moscow highway and the Borispil road. The facility is in operation since
Q1 2010 and as at the end of the reporting period its warehouse space is 100% leased. The Company has agreed to sell the
property and the sale concluded beginning of 2017 (Note 36a).
Residential Assets
· The Company owns a residential portfolio, consisting at the end of the reporting period of partly let and income
producing 69 apartments and villas across four separate complexes located in different residential areas of Bucharest
(Residential portfolio: Romfelt, Monaco, Blooming House, Green Lake Residential: Green Lake Parcel K). The Group acquired
the portfolio partly in August 2014 and partly May 2015 (Note 13) and in May 2016 proceeded in full divestment from Linda
Residences. The aggregate residential portfolio is ~40% let at the end of the reporting period.
Land Assets
· Bela Logistic Center is a 22,4 Ha plot in Odessa situated on the main highway to Kiev. Following the issuance of
permits in 2008, below ground construction for the development of a 103.000 sqm GBA logistic center commenced. Construction
was put on hold in 2009.
· Kiyanivsky Lane consists of four adjacent plots of land, totaling 0,55 Ha earmarked for a residential development,
overlooking the scenic Dnipro River, St. Michael's Spires and historic Podil neighborhood.
· Tsymlianskiy Lane is a 0,36 Ha plot of land located in the historic Podil District of Kiev and is destined for the
development of a residential complex.
· Rozny Lane is a 42 Ha land plot located in Kiev Oblast, destined for the development of a residential complex. It
has been registered under the Group pursuant to a legal decision in 2015.
· Balabino project is a 26,38 Ha plot of land situated on the south entrance of Zaporizhia, a city in the south of
Ukraine with a population of 800.000 people. Balabino is zoned for retail and entertainment development.
· Green Lake land is a 40.360 sqm plot and is adjacent to the Green Lake part of the Company's residential portfolio,
which is classified under Investments in Associates (Note 14). It is situated in the northern part of Bucharest on the bank
of Grivita Lake in Bucharest. SPDI owns ~44% of these plots, but has effective management control.
· Pantelimon Lake consists of a ~40.000 sqm plot of land in east Bucharest situated on the shore of Pantelimon Lake,
opposite to a famous Romanian hotel, the Lebada Hotel. The construction permit, which allows for ~54.000 sqm residential
space to be built, is under renewal.
· Boyana Land: The complex of Boyana Residence includes adjacent land plots with building permits to develop gross
buildable area of 21,851 sqm (Note 17).
12.2 Investment Property Movement during the reporting period
The table below presents a reconciliation of the Fair Value movements of the investment property during the reporting
period broken down by property and by local currency vs. reporting currency.
2016 (E) Fair Value movements Asset Value at the Beginning of the period or at Acquisition/Transfer date
Asset Name Type Carrying amount as at 31/12/2016 Foreign exchange translation difference(a) Fair value gain/(loss) based on local currency valuations (b) Disposals 2016 Transfer from Inventory Additions 2016 Carrying amount as at 31/12/2015
Terminal Brovary Logistics Park Warehouse 14.900.000 (925.726) 3.561.403 - - 12.264.323
Bela Logistic Center Land 5.027.986 (381.057) 283.654 - - 5.125.389
Kiyanivskiy Lane Land 3.320.368 (239.023) 356.023 - - 3.203.368
Tsymlyanskiy Lane Land 1.043.544 (75.122) 111.893 - - 1.006.773
Balabyne Land 1.517.883 (115.636) 77.597 - - 1.555.922
Rozny Lane Land 1.138.412 - (55.673) - - 1.194.085
Total Ukraine (1.736.564) 4.334.897 -
Overall change in Ukraine 26.948.193 2.598.333 - - 24.349.860
Innovations Logistics Park Warehouse 11.000.000 (15.147) (3.384.853) - - - 14.400.000
EOS Business Park Office 6.860.000 (27.684) 337.684 - - - 6.550.000
Residential portfolio Residential 4.375.000 1.440 133.130 (2.481.570) - - 6.722.000
Green Lake Land 17.919.000 (66.139) 53.139 - - - 17.932.000
Pantelimon Lake Land 4.860.000 (10.821) (941.179) - - - 5.812.000
Praktiker Craiova Retail 7.500.000 (29.975) 329.975 - - - 7.200.000
Total Romania 52.514.000 (148.326) (3.472.104) (2.481.570) - - 58.616.000
Boyana Land 4.720.000 - 34.000 - 4.686.000 - -
Total Bulgaria 4.720.000 - 34.000 4.686.000 -
GED Logistics Warehouse 16.500.000 - - - - 16.500.000
Total Greece 16.500.000 - - - - - 16.500.000
TOTAL 100.682.193 (1.884.890) 896.793 (2.481.570) 4.686.000 - 99.465.860
2015 (E) Fair Value movements Asset Value at the Beginning of the period or at Acquisition/Transfer date
Asset Name Type Carrying amount 31/12/2015 Foreign exchange translation difference(a) Fair value gain/(loss) based on local currency valuations (b) Disposals 2015 Transfer from prepayments made for investments (Note 12.4c) Additions 2015 Carrying amount as at 31/12/2014
Terminal Brovary Logistics Park Warehouse 12.264.323 (4.609.808) (589.179) - - 17.463.310
Bela Logistic Center Land 5.125.389 (1.471.485) 1.513.658 - - 5.083.216
Kiyanivskiy Lane Land 3.203.368 (1.092.315) 278.302 - - 4.017.381
Tsymlyanskiy Lane Land 1.006.773 (319.719) 178.669 - - 1.147.823
Balabyne Land 1.555.922 (567.608) (8.143) - - 2.131.673
Rozny Lane Land 1.194.085 - (324.395) 1.518.480 - -
Total Ukraine (8.060.935) 1.048.912 -
Overall change in Ukraine 24.349.860 (7.012.023) 1.518.480 29.843.403
Innovations Logistics Park Warehouse 14.400.000 - 400.000 - - 14.000.000
EOS Business Park Office 6.550.000 - 150.000 - - 6.400.000
Residential portfolio Residential 6.722.000 - 251.500 (1.902.500) - - 8.373.000
Green Lake Land 17.932.000 - (865.000) - 18.797.000 -
Pantelimon Lake Land 5.812.000 - (10.000) - 5.822.000 -
Praktiker Craiova Retail 7.200.000 - (2.870.000) - 10.070.000 -
Total Romania 58.616.000 - (2.943.500) (1.902.500) - 34.689.000 28.773.000
GED Logistics Warehouse 16.500.000 - 100.000 - 16.400.000 -
Total Greece 16.500.000 - 100.000 - - 16.400.000 -
TOTAL 99.465.860 (8.060.935) (1.794.588) (1.902.500) 1.518.480 51.089.000 58.616.403
The two components comprising the fair value movements are presented in accordance with the requirements of IFRS in the
consolidated statement of comprehensive income as follows:
a. The translation loss due to the devaluation of local currencies of E1.884.890 (a) is presented as part of the
exchange difference on translation of foreign operations in other comprehensive income in the statement of comprehensive
income and then carried forward in the Foreign currency translation reserve; and,
b. The fair value gain in terms of the local functional currencies amounting to E896.793 (b), is presented as
Valuation gains/(losses) from investment properties in the statement of comprehensive income and is carried forward in
Accumulated losses.
In respect of the main fair value changes of the various properties as at the reporting date:
- Terminal Brovary valuation reflects the price of which the property was sold in January 2017 (Note 36a).
- The decrease in the valuation of Innovations reflect the low occupancy of the property.
- The fair value of the unsold units of the Residential portfolio as at the end of the reporting period has increased by
E133.130 compared to the 2015 valuation (which was used for discharging the units sold during the period).
12.3 Investment Property Carrying Amount per asset as at the reporting date
The table below presents the values of the individual assets as appraised by the appointed valuer as at the reporting
date.
Asset Name Location Principal Operation Related Companies Carrying amount as at
31 Dec 2016 31 Dec 2015
E E
Terminal Brovary Logistics Park Brovary,Kiev oblast Warehouse LLC Terminal Brovary LLC Aisi Brovary SL Logistics Limited 14.900.000 12.264.323
Bela Logistic Center Odesa Land and Development Works for Warehouse LLC Aisi Bela 5.027.986 5.125.389
Kiyanivskiy Lane Podil,Kiev City Center Land for residential development LLC Aisi UkraineLLC Trade Center 3.320.368 3.203.368
Tsymlyanskiy Lane Podil,Kiev City Center Land for residentialdevelopment LLC Almaz Pres Ukraine 1.043.544 1.006.773
Balabyne Zaporizhia Land for retail development LLC InterterminalLLC Aisi Ilvo, 1.517.883 1.555.922
Rozny Lane Brovary district, Kiev Land for residentialDevelopment SC Secure Capital Limited 1.138.412 1.194.085
Total Ukraine 26.948.193 24.349.860
Innovations Logistics Park Clinceni, Bucharest Warehouse Myrnes Innovations Park LimitedBest Day Real Estate Srl 11.000.000 14.400.000
EOS Business Park Bucharest Office building Yamano Limited SPDI SRL, N-E Real Estate Park First Phase Srl 6.860.000 6.550.000
Praktiker Craiova Craiova Big Box retail Bluehouse Accession Project IX LimitedBluehouse Accession Project IV LimitedBlueBigBox 3 srl 7.500.000 7.200.000
Residential Portfolio Bucharest Residential apartments(55 in total in 3 complexes) Secure Investments II LimitedDemetiva LimitedDiforio LimitedFrizomo Limited Ketiza LimitedSecRom SrlSecVista SrlSecMon SrlKetiza Srl 4.375.000 6.722.000
Green Lake Bucharest Residential villas (14 villas) &land for residential development Secure Investments I LimitedEdetrio Holdings LimitedEmakei Holdings LimitedIuliu Maniu LimitedRam Real Estate Management LimitedMoselin Investments srlRimasol LimitedRimasol Real Estate SrlAshor Ventures LimitedAshor Develpoment SrlJenby Ventures LimitedJenby Investments SrlEbenem LimitedEbenem Investments Srl 17.919.000 17.932.000
Pantelimon Lake Bucharest Land for residential development Secure Investments I LimitedMofben Investments LimitedDelia Lebada Invest srl 4.860.000 5.812.000
Total Romania 52.514.000 58.616.000
Boyana Sofia Land Boyana Residence ood, Sertland Properties Limited 4.720.000 transferred from Inventory
Total Bulgaria 4.720.000
GED Logistics Athens Warehouse Victini Holdings Limited.SPDI Logistics S.A. 16.500.000 16.500.000
Total Greece 16.500.000 16.500.000
TOTAL 100.682.193 99.465.860
12.4 Investment Property analysis
a. Investment Properties
The following assets are presented under Investment Property: Terminal Brovary Logistics Park, Innovations Logistic park,
EOS Business Park, GED Logistics, Praktiker Craiova, the Residential Portfolio (consisting of apartments in 3 complexes)
and Green Lake parcel K as well as all the land assets namely Kiyanivskiy Lane, Tsymlyanskiy Lane, Balabyne and Rozny in
Ukraine, Pantelimon Lake and Green Lake in Romania as well as the land in Sofia, Bulgaria (Boyana) which has been
reclassified from Inventory.
31 Dec 2016 31 Dec 2015
E E
At 1 January 94.340.471 53.533.187
Acquisitions of investment property - 51.089.000
Disposal of investment Property (2.481.570) (1.902.500)
Transfer from Inventory/prepayments made 4.686.000 1.518.480
Revaluation gain/(loss) on investment property 613.139 (3.308.246)
Translation difference (1.503.833) (6.589.450)
At 31 December 95.654.207 94.340.471
b. Investment Properties Under Development
As at 31 December 2016 investment property under development represents the carrying value of Bela Logistic Center
property, which has reached the +10% construction in late 2008 but it is stopped since then.
31 Dec 2016 31 Dec 2015
E E
At 1 January 5.125.389 5.083.216
Revaluation on investment property 283.654 1.513.658
Translation difference (381.057) (1.471.485)
At 31 December 5.027.986 5.125.389
c. Prepayments made for Investments
From time to time, when the Group acquires a new property, it may proceed with downpayment in order to facilitate such
transactions. Movements of such prepayments are presented below for 2016 and 2015.
31 Dec 2016 31 Dec 2015
E E
At 1 January 100.000 2.674.219
Advances for acquisition transferred to Investment in subsidiary - (624.841)
Translation difference - 9.761
Transfer to Investment Properties - (1.518.480)
Transfer to long term receivables and prepayments of investments (Note 16) (100.000) -
Advances for investments from acquisition of subsidiaries - 100.000
Impairment provision - (540.659)
At 31 December - 100.000
12.5 Investment Property valuation method presentation
In respect of the Fair Value of Investment Properties the following table represents an analysis based on the various
valuation methods. The different levels as defined by IFRS have been defined as follows:
- Level 1 relates to quoted prices (unadjusted) in active and liquid markets for identical assets or
liabilities.
- Level 2 relates to inputs other than quoted prices that are observable for the asset or liability indirectly
(that is, derived from prices). Level 2 fair values of investment properties have been derived using the market value
approach by comparing the subject asset with similar assets for which price information is available. Under this approach
the first step is to consider the prices for transactions of similar assets that have occurred recently in the market. The
most significant input into this valuation approach is price per sqm.
- Level 3 relates to inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs). Level 3 valuations have been performed by the external valuer using the income approach (discounted
cash flow) due to the lack of similar sales in the local market (unobservable inputs).
To derive Fair Values the Group has adopted a combination of income and market approach weighted according to the
predominant local market and economic conditions.
Fair value measurements at 31 Dec 2016 (E) (Level 1) (Level 2) (Level 3) Total
Recurring fair value measurements
Balabyne - Zaporizhia - 1.517.883 - 1.517.883
Tsymlyanskiy Lane - Podil, Kiev City Center - 1.043.544 - 1.043.544
Bela Logistics Center- Odessa - - 5.027.986 5.027.986
Terminal Brovary Logistics Park - Brovary Kiev Oblast - 14.900.000 - 14.900.000
Kiyanivskiy Lane - Podil, Kiev City Center - 3.320.368 - 3.320.368
Rozny Lane - Brovary district, Kiev oblast - 1.138.412 - 1.138.412
Innovations Logistics Park - Bucharest - - 11.000.000 11.000.000
EOS Business Park - Bucharest, City Center - - 6.860.000 6.860.000
Residential Portfolio (ex Green Lake) - Bucharest - 4.375.000 - 4.375.000
Green Lake - Bucharest - 17.919.000 17.919.000
Pantelimon Lake - Bucharest - 4.860.000 - 4.860.000
Praktiker - Craiova - - 7.500.000 7.500.000
GED Logistics - Athens - - 16.500.000 16.500.000
Boyana- Land - 4.720.000 - 4.720.000
Totals - 53.794.207 46.887.986 100.682.193
Fair value measurements at 31 Dec 2015 (E) (Level 1) (Level 2) (Level 3) Total
Recurring fair value measurements
Balabyne - Zaporizhia - 1.555.922 - 1.555.922
Tsymlyanskiy Lane - Podil, Kiev City Center - 1.006.773 - 1.006.773
Bela Logistics Center- Odessa - - 5.125.389 5.125.389
Terminal Brovary Logistics Park - Brovary Kiev Oblast - - 12.264.323 12.264.323
Kiyanivskiy Lane - Podil, Kiev City Center - 3.203.368 - 3.203.368
Rozny Lane - Brovary district, Kiev oblast - 1.194.085 - 1.194.085
Innovations Logistics Park - Bucharest - - 14.400.000 14.400.000
EOS Business Park - Bucharest, City Center - - 6.550.000 6.550.000
Residential Portfolio (ex Green Lake) - Bucharest - 6.722.000 - 6.722.000
Green Lake - Bucharest - 17.932.000 17.932.000
Pantelimon Lake - Bucharest - 5.812.000 - 5.812.000
Praktiker - Craiova - - 7.200.000 7.200.000
GED Logistics - Athens - 16.500.000 - 16.500.000
Totals - 53.926.148 45.539.712 99.465.860
The table below shows yearly adjustments for Level 3 investment property valuations:
Level 3 Fair value measurements at 31 Dec 2016 (E) Bela Logistics Center Innovations Logistics Park EOS Business Park Praktiker Craiova GED Logistics Total
Opening balance 5.125.389 14.400.000 6.550.000 7.200.000 - 33.275.389
Transfer to and from level 2 due to change of valuation methods - - - - 16.500.000 16.500.000
Acquisitions - - - - - -
Additions - - - - - -
Disposals - - - - - -
Profit/(loss) on revaluation 283.654 (3.384.853) 337.684 329.975 - (2.433.540)
Translation difference (381.057) (15.147) (27.684) (29.975) - (453.863)
Closing balance 5.027.986 11.000.000 6.860.000 7.500.000 16.500.000 46.887.986
Level 3 Fair value measurements at 31 Dec 2015 (E) Terminal Brovary Logistics Park Kiyanivskiy Lane Tsymlyanskiy Lane Bela Logistic Center Innovations Logistics Park EOS Business Park Praktiker Craiova Total
Opening balance 17.463.310 4.017.381 1.147.823 - 14.000.000 6.400.000 - 43.028.514
Transfer to and from level 2 due to change of valuation methods - (4.017.381) (1.147.823) 5.083.216 - - - (81.988)
Acquisitions - - - - - - 10.070.000 10.070.000
Additions - - - - - - - -
Disposals - - - - - - - -
Profit/(loss) on revaluation (589.179) - - 1.513.658 400.000 150.000 (2.870.000) (1.395.521)
Translation difference (4.609.808) - - (1.471.485) - - - (6.081.293)
Closing balance 12.264.323 - - 5.125.389 14.400.000 6.550.000 7.200.000 45.539.712
Information about Level 3 Fair Values is presented below:
Fair value at 31 Dec 2016 Fair value at 31 Dec 2015 Valuation technique Unobservable inputs Relationship of unobservable inputs to fair value
E E E E E
Bela Logistic Center - Odessa 5.027.986 5.125.389 Combined market and cost approach Percentage of development works completion, deterioration rate The higher the percentage of completion the higher the fair value. The higher the deterioration rate the lower the fair value
Terminal Brovary Logistics Park- Brovary Kiev Oblast - 12.264.323 Combined market and income approach Future rental income and costs for 14 months, discount rate The higher the rental income the higher the fair value. The higher the discount rate, the lower fair value
Innovations Logistics Park - Bucharest 11.000.000 14.400.000 Income approach Future rental income and costs for 10 years, discount rate The higher the rental income the higher the fair value. The higher the discount rate, the lower fair value
EOS Business Park - Bucharest, City Center 6.860.000 6.550.000 Income approach Future rental income and costs for 10 years, discount rate The higher the rental income the higher the fair value. The higher the discount rate, the lower fair value
Praktiker Craiova 7.500.000 7.200.000 Income approach Future rental income and costs for 10 years, discount rate The higher the rental income the higher the fair value. The higher the discount rate, the lower fair value
GED Logistics 16.500.000 - Income approach Future rental income and costs for 10 years, discount rate for real estate property and for Photovoltaic 25 + 6 years for PV The higher the rental/PV income the higher the fair value. The higher the discount rate, the lower fair value
Total 46.887.986 45.539.712
13. Investment Property Acquisitions and Goodwill Movement
a. Investment Property Acquisitions
In March 2015 the Group completed the acquisition of an income producing logistics park (the "GED Logistics"), located in
the West Attica Industrial Area of Athens, Greece (Note 12.1).
In July 2015 the Group acquired Praktiker Craiova, a DIY retail property (Note 12.1). The acquisition was effected through
the issuance of Class B Redeemable Convertible Preference Shares ('RCPS') to the vendors (Note 21.6). The Company is in
discussion with the vendor vis a vis the finalization of the redemption process (Note 18).
During 2015 the Group acquired the mixed use portfolio of Sec South, a private equity entity, which included investment
properties, inventories and investment in associates, (Notes 12, 13, 14) via in kind contribution by the vendors and in
exchange of 18.028.294 ordinary shares of E0,01 and two equivalent sets of warrants as described below (Note 21.4 and
21.5).The shares were issued at a price of GBP 0,65 per share while the first set of warrants had an exercise price of GBP
0,10 and the second of GBP 0,45. Out of the 1st set of 18.028.294 warrants, 14.324.627 were exercised in 2015 and an equal
amount of ordinary shares was issued (Note 21.2) while the 2nd set has expired without being exercised (Note 21.2). The
vendors of the Sec South included Ionian Equity Participations Limited, a substantial shareholder in the Company, holding
then in excess of 10% of the Company's issued share capital, as well as an entity in which Lambros Anagnostopoulos (a
director of the Company and the CEO) had a majority stake and Constantinos Bitros (the CFO of the Company) with stakes in
Sec South of less than 20%, 4% and 1% respectively. Sec South transferred properties in SPDI, the net equity of which was
E15.782.190 (fair value at acquisition).
The fair value of identifiable assets and liabilities of acquired projects during 2015 as of the date of their acquisition
was as follows:
E GED Logistics SEC South East Praktiker Craiova Total
ASSETS
Non-current assets
Investment property 16.400.000 24.619.000 10.070.000 51.089.000
Investments in associates - 6.132.516 - 6.132.516
Other non-current assets 29.911 69.536 - 99.447
Current assets
Inventories - 12.300.000 - 12.300.000
Prepayments and other current assets 353.366 1.203.036 384.884 1.941.286
Cash and cash equivalents 160 777.247 26.425 803.832
Total assets 16.783.437 45.101.335 10.481.309 72.366.081
Non-current liabilities
Interest bearing borrowings 12.549.180 23.865.253 4.892.950 41.307.383
Deposits from tenants 211.243 - - 211.243
Current liabilities
Interest bearing borrowings 135.110 1.431.464 - 1.566.574
Trade and other payables 492.060 3.074.332 120.961 3.687.353
Taxes payable 56.776 252.033 - 308.809
Total liabilities 13.444.369 28.623.082 5.013.911 47.081.362
Net assets acquired (including non-controlling interest) 3.339.068 16.478.253 5.467.398 25.284.719
Non-controlling interest - (696.063) - (696.063)
Net assets acquired attributable to equity holders 3.339.068 15.782.190 5.467.398 24.588.656
Financed by
Cash consideration paid 1.786.934 - - 1.786.934
Issue of shares - 15.152.490 6.081.211 21.233.701
Total consideration 1.786.934 15.152.490 6.081.211 23.020.635
Gain realized on acquisitionGoodwill =Net Assets - Total consideration 1.552.134- 629.700- -(613.813) 2.181.834 (613.813)
b. Goodwill Movement
Management decided to fully impair the goodwill resulting mainly from the 2015 acquisitions and to a lesser extent from the
2014 acquisitions as they expect that the future cashflows to be generated from the related properties, based on year end
valuations and sales price expectations do not validate any more. The total impairment was E657.082.
14. Investments in associates
In May 2015 by acquiring the mixed use Sec South portfolio (Note 13) the Group acquired participation in certain properties
classified under Investments in Associates. The associates acquired were as follows:
a) Green Lake Development srl, is a residential compound company which consists as at end of the reporting period of 35
apartments plus 22 villas as well as 4 commercial use designated buildings (Phase A of Green Lake project). The compound is
situated on the banks of Grivita Lake, in the northern part of the Romanian capital. The compound includes also facilities
such as private kindergarten, nautical club, outdoor sport courts, and restaurants. The Company has a 40,35% participation
in this asset. The property as of the end of the reporting period was 46% let.
b) The Group acquired a 24,35% participation in the Delea Nuova office building property in Bucharest. The property is
a 10.280 sqm office building, which consists of two underground levels, a ground floor and ten above-ground floors. As of
the end of the reporting period, the building was 100% let, with ANCOM (the Romanian Telecommunications Regulator) being
the anchor tenant (70% of GLA). The table below summarizes the movements in the carrying amount of the Group's investment
in associates.
E 31 Dec 2016 31 Dec 2015
Cost of investment in associates at the beginning of the period 4.887.944 6.132.516
Share of profits /(losses) from associates 469.248 (1.244.572)
Dividend Income (127.569) -
Foreign exchange difference (12.313) -
Total 5.217.310 4.887.944
As at 31 December 2016, the Group's interests in its associates and their summarised financial information, including total
assets at fair value, total liabilities, revenues and profit or loss, were as follows:
Project Name Associates Total assets Total liabilities Profit/(loss) Holding Share of profits from associates Country Asset type
E E E % E
Delea Nuova Project Lelar Holdings Limited and S.C. Delenco Construct S.R.L. 24.887.951 (3.461.850) 1.926.778 24,354% 469.248 Romania Office building
GreenLake Project - Phase A GreenLake Development Srl 13.867.862 (14.698.363) (1.563.486) 40,35% - Romania Residential assets
Total 38.755.813 (18.160.213) 363.292 469.248
The share of profit from the associate GreenLake Delevopment Srl was limited up to the interest of the Group in the
associate.
As at 31 December 2015, the Group's interests in its associates and their summarised financial information, including total
assets at fair value, total liabilities, revenues and profit or loss, were as follows:
Project Name Associates Total assets Total liabilities Profit/(loss) Holding Share of profits from associates Country Asset type
E E E % E
Delea Nuova Project Lelar Holdings Limited and S.C. Delenco Construct S.R.L. 24.232.215 (4.158.521) (2.895.756) 24,354% (705.232) Romania Office building
GreenLake Project - Phase A GreenLake Development Srl 15.651.396 (16.080.270) (2.374.548) 40,35% (539.340) Romania Residential assets
Total 39.883.611 (20.238.791) (5.270.304) (1.244.572)
15. Tangible and intangible assets
As at 31 December
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