9. Investment P
nvestment P ro pert y
Investment prope rtyprincipally comprised of owned rental space attached to supermarket buildings and excess real estate, is
held for long-term rental yields or appreciation and is not occupied by the Group.
In accordance with the Group's accounting policy in Note 2.3, inv estment prope rty is accounted for at cost less accumulated
depreciation and accumulated impairment losses, if any. When stores held under finance lease agreements are closed (see
Note 20.1) or if land will no longer be developed for construction purposes, they are reclassified from property, plant and
equipment to investment property.
In 2012, €44 million of property, plant and equipment was transferred to investment property (see Note 8), of which €34 million
related to the store portfolio review, which took place at the beginning of 2012. In 2011, D elhaize G roup acquired investment
property of €34 million as part of the Delta Maxi acquisition (see Note 4.1), of which €21 million was subsequently classified as
"held for sale." In 2012, as a result of the weakening real estate market and the deteriorating state of the property for sale,
making a sale within the foreseeable future unlikely, part of these properties (net book value of €7 million) has been reclassified
into investment property (see Note 5.2).
During 2012, the Group recorded €14 million of impairment charges, primarily
warehouse in Albania. In 2011, an impairment loss of €17 million was recorded, pr
on 15
imarily
properties in the
due to the portfolio
United States a
review 12 mill
nd a
ion).
'n millions of
2012
2011(1)
2010
Cost at January 1
137
91
79
Ad dition s
6
2
15
Sales and disposals
(29)
(7)
(6)
Acquisition through business combinations
34
Transfers (to) from other accounts
142
12
(3)
Currency translation effect
(6)
5
6
Cost at Dece m ber 31
250
137
91
Ac cumulated depreciation and impairment at January 1
(54)
(31)
(29)
Depreciation expense
(4)
(3)
(3)
Sales and disposals
26
3
5
Im pairm ent
(14)
(17)
(2)
Transfers to (fr om) other accounts
(91)
(3)
Currency translation effect
3
(3)
(2)
Ac cumulated depreciation and impairment at December 31
(134)
(54)
(31)
Net carrying amount at December 31
116
83
60
(1) 2011 was revised to reflect the effects of the com pletion in the second quarter
of 2012 of the purchas
e price al
location of the Delta Max
<i acquisition.
At December 31, 2012, 2011 and 2010, the Group only had insig
nificant investme
n t prope rty under construction.
The fair value of investment property amounted to €146 million
2010, respectively. The fair values for disclosure purposes
independent external valuers or by internal valuers with the
applying a combination of the present value of future cash flows
€115 million and €92 m
have been determined
t i l lion at December 31, 2012, 2011 and
using either the support of qualified
and relevant professional qualification,
alues of comparable properties.
and observable m
arket v
Rental income from investment property recorded in other operating income was €7 million for 2012, €5
million for 2011
and
eneral
€3 million fo r 2010. O perating expenses arising from investment prope rty generating rental income, included in selling
and administrative expenses, were €6 million in 2012, €5 million in 2011 and €4 million in 2010. Operating expenses arising from
investment prope rty not generating rental income, included in selling, general and administrative expens es were €4 million in
2012, €2 million in 2011 and €4 million in 2010.
104 DELHAIZE GROUP FINANCIAL STATEMENTS'12
