15 Investment Property

In CHF million  
Notes  2012 2011
Balance as at 1 January
  15 445 14 142
Additions
  744 1 221
Capitalised subsequent expenditure
  230 187
Classification as assets held for sale and other disposals
  –731 –594
Gains/losses from fair value adjustments
  390 513
Transfers from/to property and equipment
17  168 36
Foreign currency translation differences
  –20 –60
Balance as at end of period
  16 225 15 445
 
Investment property consists of
 
completed investment property
  15 961 15 243
investment property under construction
  264 202
Total investment property
  16 225 15 445


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 761 million for the period ended 31 December 2012 (2011: CHF 751 million). Operating expenses arising from investment property that generated rental income stood at CHF 176 million for the period ended 31 December 2012 (2011: CHF 165 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 2012 (2011: nil).

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