27 Property, Plant and Equipment

Property, Plant and Equipment

in € million	Owner- occupied properties	Technical equipment, plant and machinery	Other equipment, fixtures, furniture and office equipment	Total

Cost
As of Jan. 1, 2021	201.3	65.2	284.2	550.7
Additions due to business combinations	64.6	9.8	251.7	326.1
Additions	3.1	13.9	105.6	122.6
Capitalized modernization costs	2.3	0.4	0.1	2.8
Disposals	-0.4	-5.5	-52.8	-58.7
Transfer from investment properties	12.6	–	–	12.6
Transfer to investment properties	-11.6	–	–	-11.6
Transfer to assets held for sale	-0.7	–	1.6	0.9
Other transfers	2.1	-0.2	0.7	2.6
Revaluation from currency effects	–	0.1	-0.2	-0.1
As of Dec. 31, 2021	273.3	83.7	590.9	947.9
Accumulated depreciation
As of Jan. 1, 2021	10.0	37.0	116.1	163.1
Additions due to business combinations	7.6	–	97.7	105.3
Depreciation in reporting year	3.8	8.7	64.0	76.5
Impairment	0.5	–	–	0.5
Reversal of impairments	-0.4	–	–	-0.4
Disposals	-0.4	-5.4	-48.6	-54.4
Transfer to assets held for sale	-0.1	–	1.8	1.7
Other transfers	0.9	-0.8	1.4	1.5
Revaluation from currency effects	–	0.0	0.0	–
As of Dec. 31, 2021	21.9	39.5	232.4	293.8
Carrying amounts
As of Dec. 31, 2021	251.4	44.2	358.5	654.1

Cost
As of Jan. 1, 2020	193.5	51.7	228.9	474.1
Additions due to business combinations	2.2	–	0.6	2.8
Additions	12.0	12.9	68.9	93.8
Capitalized modernization costs	1.7	0.6	0.2	2.5
Disposals	-6.0	-0.1	-14.8	-20.9
Transfer from investment properties	10.7	–	–	10.7
Transfer to investment properties	-12.8	–	–	-12.8
Other transfers	–	0.1	0.1	0.2
Revaluation from currency effects	–	0.0	0.3	0.3
As of Dec. 31, 2020	201.3	65.2	284.2	550.7
Accumulated depreciation
As of Jan. 1, 2020	9.9	26.9	78.7	115.5
Depreciation in reporting year	4.3	9.8	51.7	65.8
Impairment	0.5	–	–	0.5
Reversal of impairments	-0.6	–	–	-0.6
Disposals	-4.1	-0.2	-14.1	-18.4
Other transfers	–	0.4	-0.3	0.1
Revaluation from currency effects	–	0.1	0.1	0.2
As of Dec. 31, 2020	10.0	37.0	116.1	163.1
Carrying amounts
As of Dec. 31, 2020	191.3	28.2	168.1	387.6

Accounting Policies

Items of property, plant and equipment are carried at amortized cost less accumulated depreciation and are depreciated over their respective estimated useful lives on a straight-line basis. In accordance with IAS 36 “Impairment of Assets,” the need for impairment is tested whenever there are signs or changed circumstances indicative of an impairment.

Subsequent costs of replacing part of an item of property, plant and equipment are capitalized provided it is probable that future economic benefits associated with the item will flow to Vonovia and the cost can be estimated reliably.

The properties used by the company itself are subject to depreciation over a term of 50 years, with fixtures, furniture and office equipment subject to depreciation over a period of 3–13 years and technical equipment, plant and machinery over a period of 5–20 years.

As of December 31, 2021 the item “Owner-occupied properties” includes € 151.8 million (Dec. 31, 2020: € 107.9 million), which mainly enclose amortized production costs for the construction of the new Vonovia headquarters in Bochum, the BUWOG headquarters in Vienna, Austria, and the Deutsche Wohnen headquarters in Berlin.

Carrying amounts of owner-occupied properties amounting to € 79.9 million as of December 31, 2021 (Dec. 31, 2020: € 36.3 million) are encumbered with land charges in favor of various lenders.