Note 14 • Investment property
|
€’000 |
2010 |
2009 |
|
Gross carrying value at January 1 |
2,590 |
2,467 |
|
Additions |
4 |
26 |
|
Disposals |
(933) |
– |
|
Translation effects |
173 |
97 |
|
Gross carrying value at December 31 |
1,834 |
2,590 |
|
Accumulated depreciation at January 1 |
793 |
725 |
|
Charge of the year |
71 |
71 |
|
Disposals |
(204) |
– |
|
Translation effects |
66 |
(3) |
|
Accumulated depreciation at December 31 |
726 |
793 |
|
Net book value at year end |
1,108 |
1,797 |
Investment property includes commercial and warehouse premises leased to third parties as well as a plot of land. The warehouse premises has been sold during the last quarter of the year 2010.
The related contractual leases contain initial non-cancellable periods from 2 to 3 years. Subsequent automatic renewals periods of 2 years are considered for one of the lease contracts.
Items of Investment property are stated at cost less accumulated depreciation. Depreciation is charged to the consolidated income statements on a straight line basis over an estimated useful life from 20 to 50 years.
Amounts included in the consolidated income statements:
|
€’000 |
2010 |
2009 |
|
Rental income from investment property |
410 |
503 |
|
Direct operating expenses |
(24) |
(30) |
|
Depreciation |
(71) |
(71) |
|
Net rental income |
315 |
402 |
The fair value of investment properties has been estimated to the amount of €5.8 million (€6.4 million).
The fair value of investment properties has been determined based on valuations performed by Colliers International Ukraine and Alojzy Kiziniewicz, both accredited independant valuers. The fair value of the investment properties has been determined on transactions observable in the market.