Real estate property and fair value

VVO Group owned a total of 40,899 (40,668) rental apartments at period end. The VVO Non-subsidised segment accounted for 24,481 (19,880) of these homes and the VVO State-subsidised segment for 16,418 (20,788). At the end of the review period, VVO owned apartments in 41 (42) municipalities.

At the end of the review period, the fair value of VVO Group’s investment properties stood at EUR 3.9 (3.6) billion, with an increase in fair value of EUR 199.2 (107.1) million during the period. The change includes EUR 52.5 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 30 September 2015. 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 110,000 floor sq m (110,000 floor sq m) and its fair value was approximately EUR 44.2 (37.7) million.


EUR million

1-9/2015

1-9/2014

1-12/2014

Fair value of investment properties, beginning of period

3,708.8

3,510.3

3,510.3

Acquition of investment properties *)

125.1

108.6

169.5

Other investments on investment properties

27.2

19.7

29.1

Disposals of investment properties

-7.2

-16.1

-28.8

Capitalised borrowing costs

1.6

1.9

2.5

Valuation gains/losses on fair value assessment

52.5

-6.9

26.2

Fair value of investment properties, end of period

3,907.9

3,617.4

3,708.8

    

*) incl acquition costs of the new construction projects

 
    

Value development Q3/2015

EUR millionQ3/2015Q2/2015 Q1/2015 2014
Fair value3,907.93,865.43,782.13,708.8

Fair value

 

3.9

 

EUR billion