15 Investment Property

In CHF million  
Notes  2011 2010
Balance as at 1 January
  14 142 13 292
Additions
  1 221 880
Capitalised subsequent expenditure
  187 212
Classification as assets held for sale and other disposals
  –594 –187
Gains/losses from fair value adjustments
  513 306
Transfers from/to property and equipment
17  36 38
Foreign currency translation differences
  –60 –399
Balance as at end of period
  15 445 14 142
 
Investment property consists of
 
completed investment property
  15 243 13 817
investment property under construction
  202 325
Total investment property
  15 445 14 142


Investment property held by the Group includes residential, commercial and mixed-use properties primarily located within Switzerland, and comprises both completed investment property and investment property under construction. 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 was CHF 751 million for the period ended 31 December 2011 (2010: CHF 718 million). Operating expenses arising from investment property that generated rental income stood at CHF 165 million for the period ended 31 December 2011 (2010: CHF 153 million). Operating expenses arising from investment property that did not generate rental income during the period stood at nil for the period ended 31 December 2011 (2010: CHF 0.1 million).

 

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