8. Investment properties
Financial year 2011/2012
| in CHF thousand | Switzerland | France | Germany | Netherlands | Total |
|---|---|---|---|---|---|
| Balance as of 31.3.2011 | 337 560 | 405 067 | 360 494 | 178 909 | 1 282 030 |
| Purchases | 0 | 0 | 0 | 0 | 0 |
| Value-enhancing investments | 17 515 | 8 233 | 8 281 | 1 000 | 35 029 |
| Sales | 0 | 0 | –7 699 | –31 128 | –38 827 |
| Positive change in market value of investment properties | 24 488 | 5 104 | 3 961 | 38 | 33 591 |
| Negative change in market value of investment properties | –9 203 | –5 720 | –7 615 | –13 639 | –36 177 |
| Currency translation adjustments | 0 | –29 954 | –26 591 | –12 959 | –69 503 |
| Balance as of 31.3.2012 | 370 360 | 382 730 | 330 830 | 122 221 | 1 206 143 |
| – of which investment properties | 304 200 | 382 730 | 264 464 | 121 498 | 1 072 892 |
| – of which held for sale | 66 160 | 0 | 66 368 | 723 | 133 251 |
| Reconciliation of market value to book value as of 31.3.2012 | |||||
| Valuation by external appraiser 1 | 370 360 | 382 730 | 330 832 | 123 112 | 1 207 034 |
| Valuation adjustment property held for sale 2 | 0 | 0 | 0 | –891 | –891 |
| Balance as of 31.3.2012 | 370 360 | 382 730 | 330 832 | 122 221 | 1 206 143 |
1The report of the independent appraisers (Wüest & Partner [CH + GER], BNP Paribas [FR] and Troostwijk [NL] as of 31 March 2012 may be found on pages 159 to 164.
2In certain cases, the Company has made adjustments to the valuations from the external appraisers. In particular, these adjustments were made in cases where, as of the balance sheet date, the Company was in sales negotiations for the sale of a property, the effects of which were not yet reflected in the external valuation.
The reduction in the value of the investment properties from CHF 1 282.0 million to CHF 1 206.1 million stems primarily from the following factors:
- The value of the portfolio was increased by investments of CHF 35.0 million (previous year 50.2 million) which the Company made in the reporting period. Approximately 50% of these investments were in Switzerland and related to the renovation projects in Zurich, Berne and Geneva. Furthermore, value enhancing investments in the amount of CHF 8.2 million were made in Paris and of CHF 8.3 million in Germany, mainly in Dortmund.
- At the same time the Company sold properties for CHF 38.8 million (previous year CHF 93.9 million). The sales were in Germany and the Netherlands and are in line with the investment strategy of the Züblin Group.
- A further reduction in the value of the portfolio resulted from the net downward revaluation of the investment properties of CHF 2.6 million (previous year CHF –17.0 million). While values rose in Switzerland, the positive impacts were offset mainly by the downward revaluations in the Netherlands. The positive change in market value in Switzerland stems from lower discount rates caused by the declined yields on the transaction market. In the Netherlands, the decline in market value is a result of structural problems in the real estate sector.
- The devaluation of the euro against the Swiss franc also had a negative impact of CHF 69.5 million (previous year CHF 94.2 million) on the overall value of the portfolio.
- The fire insurance value of the investment properties amounts to CHF 1 060.8 million (previous year CHF 1 275.1 million).
A complete list of all investment properties along with all information in accordance with the Directive on Financial Reporting of the SIX Swiss Exchange can be found on pages 29 to 45. This additional information is integral part of the notes to the consolidated financial statements.
Financial year 2010/2011
| in CHF thousand | Switzerland | France | Germany | Netherlands | Total |
|---|---|---|---|---|---|
| Balance as of 31.3.2010 | 372 800 | 438 230 | 422 247 | 203 713 | 1 436 990 |
| Purchases | 0 | 0 | 0 | 0 | 0 |
| Value-enhancing investments | 35 765 | 2 853 | 9 361 | 2 198 | 50 177 |
| Sales | –77 743 | 0 | –16 126 | 0 | –93 869 |
| Positive change in market value of investment properties | 18 164 | 7 322 | 4 319 | 4 052 | 33 857 |
| Negative change in market value of investment properties | –11 426 | –4 158 | –22 278 | –13 039 | –50 901 |
| Currency translation adjustments | 0 | –39 180 | –37 029 | –18 015 | –94 224 |
| Balance as of 31.3.2011 | 337 560 | 405 067 | 360 494 | 178 909 | 1 282 030 |
| – of which investment properties | 337 560 | 405 067 | 352 040 | 167 140 | 1 261 807 |
| – of which held for sale | 0 | 0 | 8 454 | 11 769 | 20 223 |
| Reconciliation of market value to book value as of 31.3.2011 | |||||
| Valuation by external appraiser 1 | 337 560 | 405 067 | 363 162 | 183 787 | 1 289 576 |
| Valuation adjustment property held for sale 2 | 0 | 0 | –2 668 | –4 878 | –7 546 |
| Balance as of 31.3.2011 | 337 560 | 405 067 | 360 494 | 178 909 | 1 282 030 |
1The report of the independent appraisers (Wüest & Partner [CH + GER], BNP Paribas [FR] and Troostwijk [NL] as of 31 March 2011 may be found in the annual report 2010/2011.
2In certain cases, the Company has made adjustments to the valuations from the external appraisers. In particular, these adjustments were made in cases where, as of the balance sheet date, the Company was in sales negotiations for the sale of a property, the effects of which were not yet reflected in the external valuation.