10 Investment property
|
(CHF 1,000) |
|
Land |
|
Project costs |
|
Buildings and engineering structures plus movables |
|
Total investment property |
|
Cost |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
950 |
|
305,984 |
|
712 |
|
307,646 |
|
Additions |
|
0 |
|
125,823 |
|
0 |
|
125,823 |
|
Balance as at 31 December 2019 |
|
950 |
|
431,807 |
|
712 |
|
433,469 |
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2020 |
|
950 |
|
431,807 |
|
712 |
|
433,469 |
|
Additions |
|
0 |
|
138,961 |
|
0 |
|
138,961 |
|
Transfer |
|
0 |
|
–394,536 |
|
394,536 |
|
0 |
|
Balance as at 31 December 2020 |
|
950 |
|
176,232 |
|
395,248 |
|
572,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortisation |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
0 |
|
0 |
|
–592 |
|
–592 |
|
Additions |
|
0 |
|
0 |
|
–120 |
|
–120 |
|
Balance as at 31 December 2019 |
|
0 |
|
0 |
|
–712 |
|
–712 |
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2020 |
|
0 |
|
0 |
|
–712 |
|
–712 |
|
Additions |
|
0 |
|
0 |
|
–4,776 |
|
–4,776 |
|
Balance as at 31 December 2020 |
|
0 |
|
0 |
|
–5,488 |
|
–5,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount as at 31 December 2019 |
|
950 |
|
431,807 |
|
0 |
|
432,757 |
|
Net carrying amount as at 31 December 2020 |
|
950 |
|
176,232 |
|
389,760 |
|
566,942 |
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.
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 property is classified as investment property in accordance with IAS 40. In this context, Flughafen Zürich AG has decided to apply the cost model.
The Circle was opened in November 2020 even though not all of the construction work had been completed. The share of the project costs is billed and allocated to the relevant categories of investment property at the date when the space is handed over to the lessees. The assets are then depreciated over their useful lives.
The share of the fair value of the Circle was CHF 707.9 million at the reporting date (2019: CHF 530.9 million). The value was determined by an external expert using the discounted cash flow method (level 3) and taking into account the highest and best use. 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.
