Annual Report 2012 - ORCO Germany

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The decrease of interests expenses by EUR 9.5 million is mainly related to the repayment of the loan financing Sky Office and the down payment upon
financing on GSG.
16.5. Average effective interest rates
3 1 D e cem b er 20 12 31 D e cem ber 20 11 31 D ec em b er 2 01 0
B o nds 7.90 % 7.7 3% 8.49 %
B a nk b orro w in gs 4.31 % 5.3 0% 8.55 %
Bank borrowings effective rate decreased from 5.30% to 4.31% mainly due to the repayment of credit lines upon assets sales.
16.6. Loans in breach of covenants
L o n g t e r m lo a n s p r e s e n t e d in s h o rt te rm
As a t 3 1 D e c e m b e r 2 0 1 2 As a t 3 1 D e c e m b e r 2 0 1 1
P rin c ip a l
A c c ru e d
In t e r e s t
T o ta l P rin c ip a l A c c r u e d
In t e r e s t
d u e to F in a n cia l c o v e n a n t b r e a c h - - - - - -
d u e to N o n r e p a ym e n t - - - - - -
d u e to A d m in istr a tive b re a c h - - - - - -
d u e to F in a n cia l a n d a d m in is tra tiv e b r e a ch a n d /o r n o n
re p a y m e n t - - - - - -
T o t a l lo n g te rm lo a n s p re s e n t e d in s h o r t t e r m - - - - - -
S h o r t t e r m lo a n s in b r e a c h - - -
d u e to F in a n cia l c o v e n a n t b r e a c h - - - - - -
d u e to N o n r e p a ym e n t - - - - - -
d u e to F in a n cia l a n d a d m in is tra tiv e b r e a ch a n d /o r n o n
re p a y m e n t - - - - - -
T o t a l s h o r t t e r m lo a n s in b r e a c h - - - - - -
T o t a l lo a n s lin k e d t o a s s e t s h e ld f o r s a le - - - 4 ,3 0 0 - 4 ,3 0 0
T o t a l L o a n s in B re a c h - - - 4 ,3 0 0 - 4 ,3 0 0
T o ta l
During the year 2012 the breaches for the loan financing Huettenstrasse for EUR 4.3 million has been fully repaid upon sale.
17. Provisions and other long term liabilities
The provisions amount to EUR 14.0 million (EUR 10.2 million in 2011) and are mainly composed of provisions to cover the Group’s retirement benefit
obligations.
O p e n i n g S c o p e E x i t V a ria ti o n A ll o w a n c e W rite -B ac k T ran s fe r F X a d ju s t. T o ta l
R e tire m e nt o blig a tio ns 9 ,20 5 - 99 (31 8 ) - - 8 ,9 87
O th e r pro visio ns 1 ,00 0 - 4 ,00 0 - - - 5 ,0 00
O th e r lo ng term lia b ilities 8 (8 ) - - - - 0
T o ta l p r o v is io n s a n d o th e r lo n g te rm lia b ilitie s 10 ,21 4 - (8 ) 4 ,09 9 (31 8 ) - - 13 ,9 87
Other provisions
An adjustment on the provision regarding the Bar neighbour agreement (escrow account of EUR 8.7 million as at 31 December 2012) related to the
project Leipziger Platz has been recorded for EUR 4.0 million over the year 2012 leading to a total provision of EUR 5.0 million.
Retirement benefit obligation
In the Group, only Orco Projektentwicklungs GmbH (formerly Viterra Development GmbH) and Orco Grundstücks GmbH have defined benefit plans.
The Viterra plan is a so-called book reserve plan. The important attribute of this kind of plan is that there is no separate vehicle to accumulate assets
to provide for the payment of benefits. Rather, the employer sets up a book reserve (accruals) in its balance sheet.
Retirement benefit obligations:
31 December 2012 31 December 2011 31 December 2010
Present value of unfunded obligations 10,810 9,084 9,194
Unrecognised actuarial gains -1,823 122 596
Liabilities in the balance sheet 8,987 9,206 9,790
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS | 38