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.