annual financial statement 2011 - conwert Immobilien Invest SE

INTRO | MANAGEMENT REPORT |
| FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Notes
8. NOTES TO THE BALANCE SHEET
8.1. INVESTMENT PROPERTIES
The properties owned by the conwert Group were valued by several independent experts as of
31 December 2011, similar to the procedure followed in the previous year. The objects located in
foreign countries were valued in cooperation with local experts in accordance with international
valuation principles and based on the relevant national circumstances.
The development of the carrying amount of investment properties is explained in the following
table:
in € million 31.12.2011 31.12.2010
Carrying amount at the beginning of the financial year 2,701.1 2,143.4
Net foreign exchange differences (1.1) 2.4
Additions from the acquisitions of properties 0.0 145.7
Additions to existing properties 55.6 60.0
Additions from changes in the consolidation range 0.0 592.1
Additions/disposals resulting from the reclassification of properties as held for sale 21.6 (32.4)
Disposals (360.9) (217.8)
Net gain/loss from fair value adjustments 7.8 7.8
Carrying amount at the end of the reporting period 2,424.2 2,701.1
As of 31 December 2011 the conwert Group owned 1,416 investment properties (2010: 1,467) with
approx. 1,860,375 sqm of usable space (2010: approx. 2,090,762 sqm). The national locations of
these properties are as follows: 184 objects (2010: 201) in Austria, 1,195 objects (2010: 1,231) in
Germany and 37 objects (2010: 35) in other countries. The investment properties were measured
at fair value, which was based primarily on appraisals carried out in December 2011 and January
2012 by independent property experts.
Investment properties of € 2,424.2 million (2010: € 2,701.1 million) serve as collateral for loans;
the related mortgages amount to € 1,178.0 million (2010: € 1,178.0 million). Investment properties
include € 72.3 million (2010: € 96.4 million) that were obtained through finance leases.
In 2011 € 2.4 million (2010: € 1.9 million) of borrowing costs were capitalised on investment properties
(average interest rate: 5.0%; (2010: 5.0%).
No contracts for the purchase of individual properties had been signed as of 31 December 2011 that
would result in the transfer of assets after this date (2010: € 0).
8.1.1. THE PROPERTY MARKET IN AUSTRIA
The Austrian portfolio of the conwert Group comprises objects in the residential, office, commercial,
warehouse and hotel sectors, whereby the residential sector is dominant. This property
portfolio was valued as of 31 December 2011 based on the parameters described in the following
sections.
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