B.1. Group entities

The consolidated financial statements are made up of those of the Parent Company and of its directly or indirectly controlled subsidiaries. All companies satisfying the requisites of control as required by IFRS standards are included in the consolidation.

IFRS 10 defines control by describing three conditions which have to be met for considering an entity as controlled:
(a) power over the investee;
(b) exposure, or right to variable returns; and
(c) the ability to affect those returns through power over the investee.

The Group structure and the changes as compared to the previous year are presented below.

* Entity acquired in 2016

XLS

XLS

* Entity acquired in 2015

The tables below present the list of associates and participation in investment funds that are considered associates accounted for using the equity method for the purposes of the consolidated financial statements.

Since the Group does not execute significant influence over the fund Fond nemovitostních akcií, the investment was reclassified to financial investments reported at fair value in 2015.

More detailed information about significant transactions with subsidiaries of the Group is provided below.

 
Mustek properties, s.r.o.
In June 2016, the Group completed a transaction whereby it acquired an entity owning a historical building located in the commercial heart of Prague – 28. října street in the lower part of Wenceslas square – with approximately 1,800 sqm of gross lettable area. The property usage reflects the needs for a top tourist and retail destination and includes premises with mixed usage – ground floor high street retail area (20% of total area) and a boutique hotel premises in the above ground level floors.

The transaction is regarded as an acquisition of a group of assets, as the transferred set of activities and assets does not meet the definition of IFRS 3 for a business.
 
Banking House – Náměstí republiky
In March 2016, the Group acquired an office building – UniCredit Banking House – located at Náměstí republiky in Prague, next to the well recognised office and retail complex Palladium. The building was completed in the late 90’s under the baton of architect Bernhard Winking and SIAL architects providing its neofunctionalist shape, and refurbished in 2011. It provides gross lettable area of 4,575 sqm split as follows: 82% office, 12% retail and 6% storage used as a banking facility.

Upon the transfer of the ownership, the Group concluded a long-term lease agreement with Unicredit Bank, the prior owner of the property. This transaction underlines the Group focus on investment properties located in prime locations with high potential for stable income generation underlined by high occupancy.