10 Investment property
|
(CHF 1,000) |
|
Land |
|
Project and construction costs |
|
Total investment property |
|
Cost |
|
|
|
|
|
|
|
Balance as at 1 January 2018 |
|
950 |
|
211,309 |
|
212,259 |
|
Additions |
|
0 |
|
95,387 |
|
95,387 |
|
Balance as at 31 December 2018 |
|
950 |
|
306,696 |
|
307,646 |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
950 |
|
306,696 |
|
307,646 |
|
Additions |
|
0 |
|
125,823 |
|
125,823 |
|
Balance as at 31 December 2019 |
|
950 |
|
432,519 |
|
433,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortisation |
|
|
|
|
|
|
|
Balance as at 1 January 2018 |
|
0 |
|
–352 |
|
–352 |
|
Additions |
|
0 |
|
–240 |
|
–240 |
|
Balance as at 31 December 2018 |
|
0 |
|
–592 |
|
–592 |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
0 |
|
–592 |
|
–592 |
|
Additions |
|
0 |
|
–120 |
|
–120 |
|
Balance as at 31 December 2019 |
|
0 |
|
–712 |
|
–712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount as at 31 December 2018 |
|
950 |
|
306,104 |
|
307,054 |
|
Net carrying amount as at 31 December 2019 |
|
950 |
|
431,807 |
|
432,757 |
THE CIRCLE project
On 5 February 2015, Flughafen Zürich AG and Swiss Life AG notarised the purchase agreement for the share of land for THE CIRCLE and registered it for entry in the Land Register, thereby establishing the co-ownership structure between the two parties provided for in the financing agreements, in which Flughafen Zürich AG has a 51% interest and Swiss Life AG a 49% interest. Flughafen Zürich AG then transferred the project costs incurred for THE CIRCLE up until that date to the co-ownership structure.
Based on the nature of the contractual arrangement, the co-ownership structure THE CIRCLE is classified as a joint operation in accordance with IFRS 11. The share of the rights to the assets and the share of the obligations for the liabilities of the co-ownership structure are therefore recognised and presented in the relevant line items in the consolidated financial statements of Flughafen Zürich AG.
The share of THE CIRCLE property under construction is classified as investment property in accordance with IAS 40. In this context, Flughafen Zürich AG has decided to apply the cost model. The land recognised for THE CIRCLE in the amount of approximately CHF 1.0 million represents the purchase cost of the share of the plot of land on which the project will be implemented. “Project and construction costs” in the amount of CHF 431.8 million (2018: CHF 306.1 million) include the share of the production costs capitalised to date.
The fair value of THE CIRCLE was CHF 530.9 million at the reporting date (2018: CHF 373.3 million). The value was calculated by an external expert using the discounted cash flow method (level 3). Under this method, the fair value is determined on the basis of the total expected future net income (before tax, interest payments, depreciation and amortisation) discounted to the present date. A risk-adjusted discount rate is set depending on the risks and rewards and in line with market rates.
