At 31 December 2020, there were no indicators of impairment present and the Directors concluded that the carrying value of other intangible assets was not impaired at 31 December 2020. 9. Property, plant and equipment
Fixtures, Land and Assets under Total buildings construction fittings and equipment EUR'000 EUR'000 EUR'000 EUR'000 At 31 December 2020 Valuation 1,058,548 - - 1,058,548 Cost - 61,886 137,231 199,117 Accumulated depreciation (and impairment charges) * - - (54,922) (54,922) Net carrying amount 1,058,548 61,886 82,309 1,202,743 At 1 January 2020, net carrying amount 1,324,468 59,600 87,247 1,471,315 Additions through capital expenditure 714 10,986 13,712 25,412 Reclassification from assets under construction to land and buildings 6,129 (7,489) 1,360 - and fixtures, fittings and equipment for assets that have come into use Capitalised labour costs 30 69 66 165 Capitalised borrowing costs (note 4) - 1,392 - 1,392 Disposal of property, plant and equipment (68,902) (536) (2,462) (71,900) Net revaluation losses through OCI (143,631) - - (143,631) Net revaluation losses through profit or loss (30,807) - - (30,807) Impairment of fixtures, fittings and equipment - - (1,015) (1,015) Depreciation charge for the year (11,134) - (15,473) (26,607) Translation adjustment (18,319) (2,136) (1,126) (21,581) At 31 December 2020, net carrying amount 1,058,548 61,886 82,309 1,202,743 The equivalent disclosure for the prior year is as follows: At 31 December 2019 Valuation 1,324,468 - - 1,324,468 Cost - 59,600 135,676 195,276 Accumulated depreciation (and impairment charges) * - - (48,429) (48,429) Net carrying amount 1,324,468 59,600 87,247 1,471,315 At 1 January 2019, net carrying amount 1,077,208 26,404 72,648 1,176,260 Additions through freehold or site purchases 105,543 45,539 5,117 156,199 Other additions through capital expenditure 2,643 9,756 20,741 33,140 Reclassification from assets under construction to land and buildings 15,848 (18,336) 2,488 - and fixtures, fittings and equipment for assets that have come into use Capitalised labour costs 550 - - 550 Capitalised borrowing costs (note 4) - 400 - 400 Reclassification from assets under construction to other receivables for - (4,163) - (4,163) assets disposed of as part of a contractual arrangement Revaluation gains through OCI 124,962 - - 124,962 Revaluation losses through OCI (4,239) - - (4,239) Reversal of revaluation losses through profit or loss 1,967 - - 1,967 Revaluation losses through profit or loss (322) - - (322) Depreciation charge for the year (11,786) - (14,397) (26,183) Translation adjustment 12,094 - 650 12,744 At 31 December 2019, net carrying amount 1,324,468 59,600 87,247 1,471,315 *Accumulated depreciation of buildings is stated after the elimination of depreciation, revaluation, disposals and impairments.
The carrying value of land and buildings (revalued at 31 December 2020) is EUR1,058.5 million (2019: EUR1,324.5 million). The value of these assets under the cost model is EUR834.2 million (2019: EUR927.8 million). In 2020, unrealised revaluation gains of EUR1.1 million and unrealised losses of EUR144.7 million have been reflected through other comprehensive income and in the revaluation reserve in equity. A revaluation loss of EUR32.2 million and a reversal of prior period revaluation losses of EUR1.4 million have been reflected in administrative expenses through profit or loss.
Included in land and buildings at 31 December 2020 is land at a carrying value of EUR301.3 million (2019: EUR499.8 million) which is not depreciated.
There are EUR4.8 million of fixtures, fittings and equipment which have been depreciated in full but are still in use at 31 December 2020.
Additions to assets under construction during the year ended 31 December 2020 include the following: ? Development expenditure incurred on new hotel builds of EUR5.2 million primarily relating to the new hotel being
built at the former Tara Towers site in Dublin and the site at Shoreditch in London; ? Development expenditure incurred on hotel extensions of EUR5.8 million primarily relating to the conference centre at
Clayton Hotel Cardiff Lane; ? Interest capitalised on loans and borrowings relating to qualifying assets of EUR1.4 million (note 4); and ? Capitalised labour costs (EUR0.1 million) relating to the Group's internal development team and which are directly
related to asset acquisitions and other construction work completed in relation to the Group's property, plant and
equipment.
Development expenditure transferred from assets under construction to land and buildings and fixtures, fittings and equipment of EUR7.5 million primarily relate to the completion of the conference centre at Clayton Hotel Cardiff Lane.
On 24 April 2020, the Group completed the sale and leaseback of the Clayton Hotel Charlemont for EUR64.2 million. The Group now operates this hotel under a lease with a term of 35 years. As part of the transaction, a further EUR0.8 million is receivable contingent on the addition of three bedrooms to the property and the cost of this development will be borne by the Group. It is anticipated the costs associated with these additional bedrooms will not exceed the EUR0.8 million with planning permission already secured for the project.
The sale results in the derecognition of the property asset with the previously recognised revaluation gains of EUR30.3 million in the revaluation reserve being transferred to retained earnings. Immediately prior to sale, the property was revalued by external valuers in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation Standards and the fair value restated accordingly. The valuation was based on the expected price that would be received to sell the asset outright in an orderly transaction between market participants at that date on the assumption that all future economic benefits for the asset are disposed of.
In a sale and subsequent leaseback, the vendor retains the economic benefit post rent of the asset for the period of the lease. Upon sale, the asset is derecognised entirely and, following the leaseback, under IFRS 16, is replaced with a right-of-use asset which corresponds to the value of the discounted lease liability and a portion of the difference between the fair value prior to sale and the sales proceeds received. The right of-use asset does not consequently recognise a significant element of the benefits which the Group continues to enjoy which was recognised in the fair value of the asset prior to sale and leaseback.
Consequently, this results in a portion of the EUR7.7 million difference between the fair value prior to sale and the sales proceeds being treated as an accounting loss (EUR1.7 million) recognised in profit or loss and EUR6.0 million being capitalised as part of the right-of-use asset.
The Group operates the Maldron Hotel Limerick and, since the acquisition of Fonteyn Property Holdings Limited in 2013, holds a secured loan over that property. The loan is not expected to be repaid. Accordingly, the Group has the risks and rewards of ownership and accounts for the hotel as an owned property, reflecting the substance of the arrangement.
At 31 December 2020, properties included within land and buildings with a carrying amount of EUR1,034.9 million (2019: EUR1,101.8 million) were pledged as security for loans and borrowings.
Material valuation uncertainty basis
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