Hornbach-Baumarkt-AG Group

122 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Notes on the Consolidated Balance Sheet
Other equipment and plant and office equipment mainly relate to HORNBACH-Baumarkt-AG in the case of
German consolidated companies and to HORNBACH Baumarkt GmbH, HORNBACH Baumarkt Luxemburg SARL,
HORNBACH Baumarkt CS spol s.r.o., Hornbach Bouwmarkt (Nederland) B.V., Hornbach Baumarkt (Schweiz) AG,
HORNBACH-Baumarkt SK spol s.r.o., Hornbach Byggmarknad AB, and HORNBACH Centrala SRL in the case of
foreign consolidated companies.
Investment property mainly relates to retail properties at various locations in Germany. The respective rental
contracts have basic rental periods of 1 to 15 years and in some cases provide extension options for the
lessee. The properties let to third parties are recognized at amortized cost. A useful life of 33 years has been
assumed. The fair value of investment property amounts to approximately € 8.5 million (2011/2012:
€ 8.0 million). The fair values have been determined by independent experts in the overwhelming majority of
cases. The valuations are based on the capitalized earnings power of the individual pieces of real estate on
the open market. In individual cases, the fair values have been based on purchase offers received.
Rental income of € 429k was generated on properties let to third parties in the year under report (2011/2012:
€ 421k). Expenses of € 236k were incurred for the maintenance of the properties let to third parties
(2011/2012: € 299k). Expenses of € 39k were incurred for all other items of investment property (2011/2012:
€ 21k).
The real estate acts as security for bank loans in the form of registered land charges amounting to
€ 85.5 million (2011/2012: € 146.5 million).
Property, plant and equipment include a building with a carrying amount of € 831k (2011/2012: € 997k) that
is allocable to the Group as economic owner on account of the structure of the underlying lease agreement
(finance lease). The finance lease has been concluded for a basic rental period of 20 years. At the end of the
basic rental period, there is an option to extend the contract at least once for a period of 5 years. Furthermore,
the contract provides for an index-based rent adjustment clause and for pre-emptive purchase rights on
customary market terms. The leased asset acts as security for the leasing obligation.