(3) Investment property

N61 INVESTMENT PROPERTY
  FIGURES IN EUR MILLION
    2013 2012
  Gross book value as at 31.12. of the previous year 1,488 1,293
  Change in scope of consolidation (additions)    
  Business combinations 7
  Additions 455 249
  Disposals 9 144
  Disposal groups pursuant to IFRS 5 –33 –56
  Reclassification –58 145
  Exchange rate fluctuations –16 –6
  Gross book value as at 31.12. of the financial year 1,827 1,488
  Accumulated depreciation and accumulated impairment losses as at 31.12. of the previous year 191 193
  Disposals 2 16
  Reversal after impairment 6 6
  Depreciation    
  scheduled 27 23
  unscheduled 12 9
  Disposal groups pursuant to IFRS 5 –15 –32
  Reclassification –2 20
  Exchange rate fluctuations –1
  Accumulated depreciation and accumulated impairment losses as at 31.12. of the financial year 204 191
  Book value as at 31.12 of the previous year 1,297 1,100
  Book value as at 31.12 of the financial year 1,623 1,297
   

The additions primarily relate to the Non-Life Reinsurance segment (EUR 394 million). Of these additions, EUR 267 million is attributable to HR GLL Central Europe GmbH & Co. KG, Munich. The remaining additions are attributable to GLL HRE Core Properties, LP, Wilmington (EUR 49 million), a group company of Hannover Re Real Estate Holdings, Inc., and to Hannover Re Euro RE Holdings GmbH, Hannover (EUR 78 million).

The reclassification relates to real estate in the Retail International segment in accordance with use (EUR 58 million).

The fair value of investment property amounted to EUR 1,774 (1,417) million as at the balance sheet date. Of this amount, EUR 32 million is attributable to Fair Value Level 2 and EUR 1,742 million to Level 3. Fair values are determined largely internally within the Group using discounted cash flow methods and, in individual cases, on the basis of external expert opinions. The directly allocable operating expenses (including repairs and maintenance) totalled EUR 42 (33) million with respect to properties rented out. Operating expenses of EUR 6 (6) million were incurred on properties with which no rental income was generated.

With regard to investment property, there were limitations on disposal and guarantee assets in the amount of EUR 524 (541) million as at 31 December 2013. Contractual obligations to buy, create or develop investment property as well as those for repairs, maintenance and improvements amounted to EUR 49 (90) million as at the balance sheet date.