36 Real Estate Inventories
Buildings in the sales-related development business as well as land and buildings that are held for sale are disclosed within Real Estate Inventories. The sales-related development business refers to subsidized or independently financed condominiums that are under construction or have already been completed. These properties are not held with the aim of generating rental income or achieving increases in value within the meaning of IAS 40, but rather are developed and constructed to be sold at a later date. These development projects are recognized depending on whether there is a customer contract for the residential units that are intended for sale. If this is not the case, the valuation is performed, due to the intention to sell according to IAS 2 at amortized cost or at net realizable value, whichever is lower, with a corresponding disclosure under real estate inventories.
The land and buildings held for sale are properties that are sold in line with usual business operations, so that this can exceed a period of 12 months. The initial measurement takes place at acquisition or production cost. The acquisition costs include directly attributable acquisition and handling costs, especially acquisition costs for the property as well as incidental acquisition costs.
Recognized real estate inventories in the amount of € 671.2 million (Dec. 31, 2020: € 570.4 million) mainly concern development projects. These are projects to construct residential units planned for sale that are currently being built in the amount of € 347.7 million (Dec. 31, 2020: € 522.6 million) or that have been completed but have not yet been sold in the amount of € 108.2 million (Dec. 31, 2020: € 47.8 million). The item also includes the properties and buildings intended for sale in the ordinary course of business in the amount of € 215.3 million (Dec. 31, 2020: € - million).