15 Investment Property

In CHF millionNotes  20082007
Balance as at 1 January  12 25211 816
Additions  220326
Additions from business combinations29  34
Capitalised subsequent expenditure  111135
Classification as assets held for sale and other disposals  –155–462
Gains/losses from fair value adjustments  194229
Transfers from property and equipment17  25695
Changes from discontinued operations  19
Foreign currency translation differences  –21560
Balance as at 31 December  12 66312 252


Investment property consists of investments in residential, commercial and mixed-use properties primarily located within Switzerland. Property held for investment purposes comprises land and buildings owned by the Group to earn rentals and/or for capital appreciation. Property that is used by the Group itself or leased to, and occupied by, another entity of the Group is classified as owner-occupied property under property and equipment. Property acquired with a view to its subsequent disposal in the near future is carried under assets held for sale.

Rental income from investment property from continuing operations was CHF 701 million for the period ended 31 December 2008 (2007: CHF 670 million). Operating expenses arising from investment property from continuing operations that generated rental income stood at CHF 162 million for the period ended 31 December 2008 (2007: CHF 168 million). Operating expenses arising from investment property from continuing operations that did not generate rental income during the period stood at CHF 0.1 million for the period ended 31 December 2008 (2007: CHF 0.1 million).

 
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