165 / 222
161
1
Including goodwill.
2
As the value in use is greater than the net book value, the net book value is presented here.
3
“0” is indicated where the value in use is greater than the net book value.
4
Including the fair value of buildings which receivables were sold, which stands at K€222,721.
(x €1,000)
Building group
Goodwill
Net book value
1
Value in use
Impairment
Pubstone Belgium
66,777
338,979
327,979
-11,000
Pubstone Netherlands
35,650
185,046
185,046
2
CIS France
26,929
227,560
227,560
2
TOTAL
129,356
751,585
740,585
-11,000
Sensitivity analysis of the value in use when the main variables of the impairment test vary
Change in the value in use (in %)
Building group
Changes in inflation
Changes in discount rate
Changes in margin
+0.50%
-0.50%
+0.50%
-0.50%
+5.00%
-5.00%
Pubstone Belgium
5.97%
-5.52%
-5.71%
6.22%
1.83%
-1.83%
Pubstone Netherlands
6.15%
-5.68%
-5.86%
6.40%
1.56%
-1.56%
CIS France
7.25%
-6.61%
-6.36%
7.02%
/
/
Sensitivity analysis of the impairment when the main variables of the impairment test vary
Impairment (x €1,000)
Building group
Impairment
booked
Changes in inflation
Changes in discount rate
Changes in margin
+0.50%
-0.50%
+0.50%
-0.50%
+5.00%
-5.00%
Pubstone Belgium
-11,000
0
-29,262
-29,867
0
-5,157
-17,156
Pubstone
Netherlands
0
0
-8,287
-8,620
0
0
-565
CIS France
0
0
0
0
0
/
/
of the café/restaurant, who is tied to AB InBev by a sublease con-
trat and a beverage supply contract, or the operator of an adja-
cent establishment wishing to expand his retail space by taking
over that of a competitor. These situations have a favourable
impact on the selling price. Only the margins on the disposals of
assets vacated by AB InBev are therefor taken into account.
The disposal of cafés/restaurants realised at market conditions
similar to the asumptions taken into account for the calculation
of the value in use, i.e. that only the cafés/restaurants vacated
by AB InBev are sold, showed an 18% (2013: 30%) gain versus the
last value of the real estate expert. Out of caution, no margin is
taken into account during the first three years and the 15% margin
taken into account afterwards is lower than the average margin
observed since the acquisition of the portfolio.
The indexation considered for these cash flows progresses from 0.5%
to 1.5% (as from the fifth year) per year (2013: 2%).
The discount rate used amounts to 5.80% (2013: 6.50%).
Assumptions used in the calculation of the value in
use of Cofinimmo Investissements et Services
A projection of future net cash flows was drawn up over 27 years. The
assumption adopted is the renewal of all the leases during a 27-year
period from the acquisition date.
The cash flow comprises the present indexed rent up to the date of
the first renewal of the lease. After this date, the cash flow consid-
ered is the indexed allowable rent. Cash expenditures foreseen in
the buildings’ renovation plan are also taken into account. Allowable
rents are rents estimated by the expert, stated in his portfolio valua-
tion at 31.12.2014, which are considered sustainable in the long term
in terms of the profitability of the activity of the operating tenant.
At the 28th year, a residual value is calculated per property.
The indexation considered for these cash flows stands at 2% per year
(2013: 2%).
The discount rate used amounts to 5.80% (2013: 6.50%).
NOTE 21. INVESTMENT PROPERTIES
(x €1,000)
2014
2013
Properties available for lease
3,097,932
3,199,030
Development projects
88,966
130,533
Assets held for own use
8,875
9,146
TOTAL
3,195,773
4
3,338,709
The fair value of the portfolio, as determined by the independent experts, stands at K€3,199,183 at 31.12.2014 (31.12.2013: K€3,347,009). It
includes investment properties for K€3,195,773 (31.12.2013: K€3,338,709) and assets held for sale for K€3,410 (31.12.2013: K€8,300).