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DES - Online Annual Report 2009

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3. Investment properties

2008 in € thousands Investment properties
Costs as at 1 January 1,495,632
Currency differences -38,129
Additions 0
Investments during the year 172
Disposals 0
Reclassifications 210,269
as at 31 December 1,667,944
   
Depreciation/impairment losses and reversals as at 1 January 162,568
Currency differences 0
Additions 0
Reversals of impairment losses 89,947
Depreciation -23,631
Disposals 939
as at 31 December 229,823
   
Carrying amount at 1 January 1,658,200
Carrying amount at 31 December 1,897,767
2009 in € thousands Investment properties
Costs as at 1 January 1,667,944
Currency differences 132
Additions 16,459
Additions to basis of consolidation 71,228
Investments during the year 4,703
Disposals 0
Reclassifications 21,157
as at 31 December 1,781,623
   
Depreciation/impairment losses and reversals as at 1 January 229,823
Currency differences 0
Additions 0
Reversals of impairment losses 14,167
Depreciation -34,634
Disposals 0
as at 31 December 209,356
   
Carrying amount at 1 January 1,897,767
Carrying amount at 31 December 1,990,979

The reclassifications relate to the expansion measures in Dresden, which have had to be reported in accordance with IAS 40 since 1 January 2009. The investment projects in Dresden and Sulzbach are expansions with a functional connection to the existing properties. Costs incurred during the investment project are to be recognised as expenses. If the project results in an increase in the fair value of the portfolio property, a reversal is recognised in income. The amount of this, however, is limited to the amount of the costs already incurred.

In 2009, there were two additions to the basis of consolidation. With effect from 2 January 2009, Deutsche EuroShop Verwaltungs GmbH increased its share in City-Point Kassel from 40% to 90%, with the result that this company is no longer proportionately consolidated but is now fully consolidated.

In addition, CASPIA Investments Sp. z o.o, Warsaw, was fully consolidated for the first time. This company is a property company that owns an office property in Gdansk. Deutsche EuroShop holds an indirect interest of 74% in this company. This investment was previously reported under non-current financial assets. On the balance sheet date, the property was valued and recognised at its market value in accordance with IAS 40. Due to the secondary importance of this property for the Group, no appraisal was drawn up.

The properties are secured by mortgages. Land charges exist in the amount of €934,195 thousand.

The rental income of the properties valued in accordance with IAS 40 was €127,563 thousand. Direct operating expenses totalled €13,024 thousand.

Continue reading: 4. Non-current financial asstes

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