Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 11. Investment Properties 2018 2017 2016 At 1 January 353,565 288,227 246,398 Additions* 71,785 86,530 36,123 Disposals (74,278) (11,469) (8,599) Net (losses) gains from revaluation of investment property (994) 32,020 1,811 Demerger (151,031) – – Acquisition through business combination – – 19,417 Transfers (to) from property and equipment, other assets and assets held for sale** (47,601) (39,864) (21,291) Currency translation differences – (1,879) 14,368 At 31 December 151,446 353,565 288,227 * Nil, GEL 17,187 and GEL 9,799 was paid in 2018, 2017 and 2016 respectively, for acquisition of properties by the Group’s Real Estate business for development. The remaining additions of 2018, 2017 and 2016 comprise foreclosed properties, no cash transactions were involved. **Comprised of GEL 13,564 transfer from property and equipment (2017: transfers to property and equipment GEL 27,216 and 2016: transfers to property and equipment GEL 351 respectively), Nil transfer to other assets – inventories (2017: transfer to assets – inventories GEL 1,158 and 2016: transfer to other assets – inventories GEL19,402) and GEL 6,478 transfer to finance lease receivables (2017: transfer to finance lease receivables GEL 11,490 and 2016: transfer to finance lease receivables GEL 1,538). In addition, the Group identified certain investment properties in the amount of GEL 54,687 which met assets held for sale criteria and transferred these assets to the respective category. Investment properties are stated at fair value. The fair value represents the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. As at 31 December 2018 the fair values of the properties are based on valuations performed by accredited independent valuers. Refer to Note 28 for details on fair value measurements of investment properties. The Group pledges its investment property as collateral for its borrowings. The carrying amount of investment property pledged as at 31 December 2018 was Nil (2017: GEL 113,598, 2016: 77,148). Annual Report 2018Bank of Georgia Group PLC 229