NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
15 INVESTMENT PROPERTIES
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Balance sheets:
At fair value:
Balance as at 1 January
849,910
914,557
122,346
119,111
Fair value changes recognised in profit or loss
(4,021)
20,107
1,484
5,132
Redevelopment expenditure
2,173
8,169
–
–
Attributable to disposal group classified as held for sale
(note 24)
(42,317)
(40,500)
–
–
Disposal during the year
(405,000)
(50,475)
(69,741)
–
Exchange adjustment
(982)
(1,948)
(954)
(1,897)
Balance as at 31 December
399,763
849,910
53,135
122,346
Group
2014
2013
$’000
$’000
Income statement:
Rental income from investment properties:
– Minimum lease payments
20,086
21,131
– Contingent rent based on tenant’s turnover
8
7
20,094
21,138
Direct operating expenses (including repairs and maintenance) arising from:
– Rental generating properties
(8,355)
(7,746)
– Non-rental generating properties
(8)
(7)
(8,363)
(7,753)
(a)
Except as disclosed in note 15(d), the Group has no restrictions on the realisability of its investment properties.
(b)
Investment properties are stated at fair value. Valuations of investment properties have been determined based on
valuations at or approximate the end of the reporting period. Valuations are performed by accredited independent
valuers with recent experience in the location and category of the properties being valued. Details of valuation
techniques and inputs used are disclosed in note 43C.
(c)
In 2013, the land and building at No. 9 Battery Road, Singapore amounting to $400,000,000 were mortgaged to
secure bank facilities. The loan was repaid in 2013. The mortgage was discharged and the property was sold during
the financial year.
(d)
The 14 residential units at The Holland Collection, Singapore amounting to $53,778,000 (2013: $60,150,000) are
mortgaged to secure bank facilities.
(e)
During the financial year, employee benefits expense capitalised in investment properties while undergoing
redevelopment amounted to $15,000 (2013: $79,000) (note 7).
97
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
