11. Bank loans and overdrafts

in € thousand 31.12.2011 31.12.2010
Non-current bank loans and overdrafts 1,335,986 1,227,096
Current bank loans and overdrafts 136,163 61,060
  1,472,149 1,288,156

Bank loans and overdrafts are recognised at amortised cost on the balance sheet date. The present value of loans is redetermined at the reporting date. To do so, the annuities due up to this date, together with any residual amount according to the redemption schedule are discounted at the reporting date at market rates of interest plus a margin. The fair value of the bank loans and overdrafts at the reporting date is € 1,539,651 thousand (previous year: € 1,330,746 thousand). The previous year’s figure has been restated.

Bank loans and overdrafts relate to loans raised to finance property acquisitions and investment projects. Land charges on Company properties totalling € 1,472,149 thousand (previous year: € 1,288,156 thousand) serve as collateral.

Discounts are amortised over the term of the loan. In the year under review, € 4,954 thousand (previous year: € 4,592 thousand) was recognised in income.

Eleven of the 31 loan agreements currently contain arrangements regarding covenants. There are a total of 15 different conditions on different debt service cover ratios (DSCR), interest cover ratios (ICR), changes in rental income, the equity ratio and loan-to-value ratios (LTV). The credit conditions have not to date been breached, and according to the current planning will not be breached in 2012-2014 either.

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