Annual report 2008 - Altarea Cogedim

• In 2008
At 31 December 2008, assets under development related
primarily to:
– the Le Due Torri shopping centre project in Stezzano
(Bergamo),
– the Kremlin Bicêtre shopping centre project,
– the property complex project on Avenue de Wagram (Paris),
– the Marigny Carré de Soie property complex project (Lyon),
– the Valdemoro and Puerto Real shopping centres projects
in Spain.
Investments during the financial year ended 31 December
2008 primarily included the Kremlin Bicêtre, Stezzano,
Guipavas (Brest), Carré de Soie (Lyon), Wagram (Paris),
Porte Jeune (Mulhouse) and Aubette (Strasbourg) shopping
centres.
In 2008, €20,497 thousand in finance costs were
capitalised in respect of projects under development.
The costs capitalised in respect of projects in Spain, the
development of which was delayed were written off in full
given the problems encountered since October 2008 in
raising funds in Spain as a result of the financial crisis.
• In 2007
At 31 December 2007, assets under development related
primarily to:
– the property complex project on Avenue de Wagram, under
construction since February 2007,
– the shopping centre project in Valdemoro, Spain, for which
land was acquired on 11 September 2007,
– the Kremlin Bicêtre shopping centre project, on which
construction work began during 2007,
– the Mulhouse shopping centre, under construction since
May 2007,
– the Brest Guipavas retail park, under construction since
June 2007,
– the Strasbourg Aubette shopping centre, under construction
since February 2007,
– the projects under development in Italy, which for the
most part are located in Stezzano, Genoa, Caltanisetta
(Sicily) and Pinerolo (Piedmont).
The investments made during 2007 relate primarily
to the shopping centres in Valdemoro (Spain), Thiais,
Aubergenville, Casale Montferrato (Alessandria Province),
and Ragusa (Sicily).
In 2007, €13,505 thousand in finance costs were
capitalised in respect of projects under development.
Expenditures capitalised in respect of projects on which
development was halted were written off in full.
13.6. Investment in associates
n Change in the fair value of investments in
associates
(in € thousand)
Equity method
associates
AT 1 January 2007 33,301
Dividends (400)
Share of earnings 6,921
Capital increases 7
Reclassifications (0)
Change of accounting method –
Translation adjustments (2,896)
Change in scope of consolidation 55,365
At 31 december 2007 92,298
Dividends (2,174)
Share of earnings (26,290)
Capital increases 2,568
Translation adjustments 977
Change in scope of consolidation 1,220
At 31 december 2008 68,599
To reflect the highly unfavourable macroeconomic
conditions prevailing in Russia since the beginning of the
2009, management considered it reasonable to write off
in full at 31 December 2008 its 10% indirect holding in
the RosEvroDevelopement group housed by SSF III Zhivago
Holding Ltd. The Group has no other obligations to this
company.
The €977 thousand positive change in the translation
adjustment relates to SSF III Zhivago Holding Ltd, whose
financial statements are prepared in US dollars and which
holds an equity interest in a property development entity in
Russia.
The increase in capital line item relates to participation
in an issue of new shares by SSF III Zhivago Holding Ltd
during the first half of 2008.
The change in the scope of consolidation line item
predominantly comprises an earn-out payment net of costs
to former shareholders in Liévin Invest in March 2008. This
earn-out payment gave rise to an adjustment of the goodwill
calculated upon the acquisition in June 2007.
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