(21) Investment property
| All figures in €’000 | Investment property |
Payments on account and assets under construction |
Total |
|---|---|---|---|
| Acquisition costs | |||
| As at Jan 1, 2007 | 25,564 | – | 25,564 |
| Additions | – | 286 | 286 |
| Disposals | –818 | – | –818 |
| Transfers | 286 | –286 | – |
| As at Dec 31, 2007 | 25,033 | – | 25,033 |
| As at Dec 31, 2008 | 25,033 | – | 25,033 |
| Depreciation and amortisation | |||
| As at Jan 1, 2007 | 10,501 | – | 10,501 |
| Depreciation and amortisation | 438 | – | 438 |
| Disposals | –542 | – | –542 |
| As at Dec 31, 2007 | 10,397 | – | 10,397 |
| Depreciation and amortisation | 424 | – | 424 |
| Impairment | 2,511 | – | 2,511 |
| As at Dec 31, 2008 | 13,333 | – | 13,333 |
| Carrying amount Jan 1, 2007 | 15,063 | – | 15,063 |
| Carrying amount Dec 31, 2007 | 14,635 | – | 14,635 |
| Carrying amount Jan 1, 2008 | 14,635 | – | 14,635 |
| Carrying amount Dec 31, 2008 | 11,700 | – | 11,700 |
The investment property held by the Group concerns an office and administration building which is rented out under an operating lease. As at December 31, 2008, the recoverable amount stood at € 11,700 thsd (previous year: € 14,700 thsd). It is based on an appraisal report issued by the auditing company KPMG Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft. This evaluation was carried out in line with the gross rental method for buildings and with the sales comparison approach for land.
In order to calculate the land value, the standard land value is used as a basis, taking into account the derived floor space index in accordance with the advice of the local expert advisery committee. There was only a marginal change compared to the previous year.
The gross rental value is determined on an estimate of the sustainable gross rental income. Taking into account the specific location of the real estate and the estimated development of the rental tariffs of comparable objects at the same location, the sustainable annual gross proceeds have been reduced compared to the previous year. The anticipated property return is 5.5 % (previous year 5.25 %). Due to the given parameters, there was an impairment loss on the recoverable amount of € 2,511 thsd.
Rent income from the rental of investment property held by the Group amounted to € 1,436 thsd in 2008 (previous year: € 1,357 thsd). The expenses in connection with the investment property totalled € 403 thsd in the financial year 2008 (previous year: € 510 thsd).