Annual report 2008 - Altarea Cogedim

14.5. Net gain/(loss) on sale of investment assets
12/31/2008 12/31/2007
Proceeds from sale of investment assets 23,830 -
Carrying amount of assets sold (23,492) -
GAIN ON SALE OF INVESTMENT ASSETS 338 -
The net gain/(loss) on the sale of investment assets derived from three asset disposals: one supermarket in the French
provinces, city-centre ground-floor retail properties and a shopping mall in Paris.
14.6. Other items contributing to operating profit
n Breakdown
(in € thousand) 12/31/2008 12/31/2007 *
Change in value of investment properties (86,306) 411,911
> of which Change in value of investment properties delivered 96,815 182,431
> of which Other changes in value of investment properties (183,121) 229,480
Net impairment losses on assets under development (17,488) 163
Net impairment losses on other non-current assets 654 (2,345)
Net allowance for provisions (10,336) (127)
Positive difference on first-time consolidation – 1,603
Amortisation of customer relationships (91,545) –
Impairment of goodwill (225,290)
OTHER ITEMS CONTRIBUTING TO OPERATING PROFIT (430,312) 411,204
* Cogedim: contribution over 6 months
• In 2008
The change in the fair value of investment property represented an expense of €86.3 million at 31 December 2008.
Assets delivered during the financial year contributed a gain of €96.81 million to this change.
The negative balance of other changes in value predominantly reflects shopping centres in service at 31 December 2007 and
primarily derived from the increase in capitalisation rates, offset partially by the effects of asset management and indexation.
Net impairment losses on assets under development, which represented an expense of €17.5 million, primarily related to
development projects in Spain for which the fees and previously capitalised finance costs were written down (see note 12.4),
and to a lesser extent, to the halting of a project and the impairment of two assets in France.
Net impairment losses on other non-current assets represented a gain of €0.65 million owing to the partial write-back of a
provision for land related to a shopping centre in operation.
The net allowance to provisions, which represented an expense of €10.33 million, comprises the following items:
• impact of the plan to protect jobs at Cogedim: negative €4.9 million;
• loss to completion on a project: negative €3.2 million;
Of the impairment losses recorded during the financial year, €223.3 million related to Cogedim and €2 million to Altareit.
See note 13.1.
The impairment of customer relationships derived principally from margin contraction, a higher cancellation rate and the halt
called to certain developments.
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