Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

14. Investment Properties (Tables)

v3.19.1
14. Investment Properties (Tables)
12 Months Ended
Dec. 31, 2018
Investment Properties Tables Abstract  
Schedule of investment properties

Investment properties valuation at December 31, 2018, 2017 and 2016 are shown in the table below:

 

Cost or valuation   Investment Properties  
Balance at January 1, 2016   $ 37,407,083  
Additions      
Disposals      
Revaluation adjustment     (563,477 )
Currency exchange rate adjustment     (1,057,553 )
Balance at December 31, 2016   $ 35,786,053  
Additions      
Disposals     (5,893,888  
Revaluation adjustment     (858,371 )
Currency exchange rate adjustment     4,796,108  
Balance at December 31, 2017   $ 33,829,902  
Additions      
Disposals     (2,484,462 )
Revaluation adjustment     (98,522 )
Currency exchange rate adjustment     (1,445,287 )
Balance at December 31, 2018   $ 29,801,631  
Schedule of details of the investment properties

Details of the investment properties is as follows:

 

Location, address   2018 Fair Value,
Level 3
    2017 Fair Value,
Level 3
    2016 Fair Value,
Level 3
 
Milano, Corso Europa 22   $     $     $ 5,339,312  
Buccinasco, Via Lucania 2-4-6     18,077,566       18,982,736       16,492,776  
Buccinasco, Via Privata Mulino 24     1,065,408       1,130,068       981,336  
Buccinasco, Via Lazio 95     1,558,015       3,907,149       3,703,752  
Buccinasco, Via Bruno Buozzi 22           180,330       849,436  
Buccinasco, Via Emilia 30     170,694       180,330       162,501  
Rozzano, Milanofiori, Building A5     2,577,599       2,789,103       2,437,512  
Rozzano, Milanofiori, Building N1     3,688,831       3,847,039       3,397,744  
Rozzano, Milanofiori, Building Q5     1,082,591       1,154,112       1,018,268  
Rozzano, Milanofiori, Building Q7     1,580,927       1,659,035       1,403,416  
Total   $ 29,801,631     $ 33,829,902     $ 35,786,053  
Schedule of unobservable inputs

The summary of the unobservable inputs used for the year ended December 31, 2018 are as follows:

 

Property   Fair Value     Valuation
technique
  Key unobservable
inputs
  Inputs used  
Buccinasco, Via Lucania 2-4-6     18,077,566     DCF   ERV     $ 92 per sq meter  
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     8.60%  
                Cap rate     7.45%  
                         
Buccinasco, Via Privata Mulino 24     1,065,408     DCF   ERV     $ 203 per sq meter  
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     7.40%  
                Cap rate     6.90%  
                         
Buccinasco, Via Lazio 95     1,558,015     DCF   ERV     $ 76 per sq meter  
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     8.70%  
                Cap rate     7.45%  
                         
Buccinasco, Via Emilia 30     170,694     DCF   ERV    

$ 64 per sq meter,

$ 458 per parking space

 
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     8.80%  
                Cap rate     7.45%  
                         
Rozzano, Milanofiori, Building A5     2,577,599     DCF   ERV    

$ 145 per sq meter – offices,
$158 per sq. meter – commercial area,
$46 per sq. meter – cellars,
$1,031 per parking space

 
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     6.90%  
                Cap rate     5.60%  
                         
Rozzano, Milanofiori, Building N1     3,688,831     DCF   ERV     $ 145 per sq meter  
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     6.90%  
                Cap rate     5.60%  
                         
Rozzano, Milanofiori, Building Q5     1,082,591     DCF   ERV    

$ 145 per sq meter,

$ 1,031 per parking space

 
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     6.90%  
                Cap rate     5.60%  
                         
Rozzano, Milanofiori, Building Q7     1,580,927     DCF   ERV    

$ 145 per sq meter,

$ 1,306 per parking space

 
                Rental growth p.a.     0.75% to 1.5%  
                Discount rate     6.90%  
                Cap rate     5.60%  
                         
Total   $ 29,801,631                  

 

The summary of the unobservable inputs used for the year ended December 31, 2017 are as follows:

 

Property   Fair
Value
    Valuation
technique
  Key
unobservable
inputs
  Inputs
used
 
Buccinasco, Via Lucania 2-4-6   $ 18,982,736     DCF   ERV     $96 per sq. meter  
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     8.50%  
                Cap rate     7.5%  
                         
Buccinasco, Via Privata Mulino 24     1,130,068     DCF   ERV     $213 per sq. meter  
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     7.30%  
                Cap rate     6.9%  
                         
Buccinasco, Via Lazio 95     3,907,149     DCF   ERV     $82 per sq. meter – warehouse
$117 per sq meter – office
 
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     8.60%  
                Cap rate     7.5%  
                         
Buccinasco, Via Bruno Buozzi 22     180,330     DCF   ERV     $117 per sq. meter  
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     6.80%  
                Cap rate     5.6%  
                         
Buccinasco, Via Emilia 30     180,330     DCF   ERV    

$69 per sq. meter,

$481 per parking space

 
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     8.70%  
                Cap rate     7.6%  
                         
Rozzano, Milanofiori, Building A5     2,789,103     DCF   ERV     $153 per sq. meter – offices,
$166 per sq. meter commercial area
$48 per sq. meter – cellars,
$1,082 per parking space
 
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     6.80%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building N1     3,847,039     DCF   ERV     $84 - $153 per s. meter  
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     6.80%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building Q5     1,154,112     DCF   ERV     $153 per sq. meter,
$1,082 per parking space
 
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     6.80%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building Q7     1,659,035     DCF   ERV     $153 per sq. meter,
$1,082 per parking space
 
                Rental growth p.a.     0.83% to 1.50%  
                Discount rate     6.80%  
                Cap rate     5.6%  
                         
Total   $ 33,829,902                  

 

The summary of the unobservable inputs used for the year ended December 31, 2016 are as follows:

 

Property   Fair
Value
    Valuation
technique
  Key
unobservable
inputs
  Inputs
used
 
Milano, Corso Europa 22   $ 5,339,312     DCF   ERV     $475 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     4.96%  
                Cap rate     4.3%  
                         
Buccinasco, Via Lucania 2-4-6     16,492,776     DCF   ERV     $88 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     8.56%  
                Cap rate     7.5%  
                         
Buccinasco, Via Privata Mulino 24     981,336     DCF   ERV     $185 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     7.36%  
                Cap rate     6.9%  
                         
Buccinasco, Via Lazio 95     3,703,752     DCF   ERV     $73 - $103 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     8.66%  
                Cap rate     7.5%  
                         
Buccinasco, Via Bruno Buozzi 22     849,436     DCF   ERV     $103 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     6.86%  
                Cap rate     5.6%  
Buccinasco, Via Emilia 30     162,501     DCF   ERV     $61 per sq. meter,
$422 per parking space
 
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     8.76%  
                Cap rate     7.6%  
                         
Rozzano, Milanofiori, Building A5     2,437,512     DCF   ERV     $135 per sq. meter,
$950 per parking space
 
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     6.86%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building N1     3,397,744     DCF   ERV     $74 - $135 per sq. meter  
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     6.86%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building Q5     1,018,268     DCF   ERV     $135 per sq. meter,
$950 per parking space
 
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     6.86%  
                Cap rate     5.6%  
                         
Rozzano, Milanofiori, Building Q7     1,403,416     DCF   ERV     $135 per sq. meter,
$950 per parking space
 
                Rental growth p.a.     0.975% to 1.5%  
                Discount rate     6.86%  
                Cap rate     5.6%  
                         
Total   $ 35,786,053