Assets held for rental

Dear Sir,

If an asset is held by a company,say a building, with the intention of earning rental we should follow the accounting treatment prescribed in IAS 40. Thats what I learnt. However, If we look at the Definition of PPE given in IAS 16 which is;
“tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one accounting period”

It defines assets held ‘for rental to others’ as PPE..

How do those assets fall under PPE definition ? They should come under IAS 40, Shouldn’t they?

Thank you in advance.