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ANNUAL REPORT FY12/13 125
Investment Properties Portfolio Statement
As at 31 March 2013
Investment properties comprise a diverse portfolio of industrial properties that are leased to customers. Most of the leases for multi-
tenanted buildings contain an initial non-cancellable period ranging from one to three years. Subsequent renewals are negotiated with the
respective lessees.
(a)
In March 2013, independent valuations for 102 (2012: 99) properties were undertaken by CBRE Pte. Ltd., CBRE HK Limited,
DTZ Debenham Tie Leung (SEA) Pte Ltd, Colliers International Consultancy & Valuation (Singapore) Pte Ltd, Jones Lang LaSalle
Property Consultants Pte Ltd, Cushman & Wakefield VHS Pte Ltd and Knight Frank Pte Ltd. These firms are independent valuers
having appropriate professional qualifications and recent experience in the location and category of the properties being valued.
The valuations for these properties were based on the direct comparison method, capitalisation approach and discounted cash
flow analysis. The valuations adopted amounted to $6,319.6 million (2012: $5,984.8 million). The net increase in valuation of $72.8
million (2012: $224.5 million) has been recognised in the Statement of Total Return. The investment property under development
was valued by management at $151.9 million (2012: $121.4 million) as at 31 March 2013.
(b)
The Galen was acquired from a related party of the Manager, Singapore Science Park Ltd, in March 2013 and was recorded at the
costs incurred upon acquisition as at 31 March 2013. Cintech I, Cintech II and Cintech III & IV were acquired in March 2012 and
were recorded at the costs incurred upon acquisition.
(c)
Includes an option for the Trust to renew the land lease for a further term of 30 years upon expiry.
(d)
Includes an option for the Trust to renew the land lease for a further term of 28 years upon expiry.
(e)
Includes an option for the Trust to renew the land lease for a further term of 17 years upon expiry.
(f)
Includes an option for the Trust to renew the land lease for a further term of 24.4 years upon expiry.
(g)
Includes an option for the Trust to renew the land lease for a further term of 15 years upon expiry.
(h)
Includes an option for the Trust to renew the land lease for a further term of 13 years upon expiry.
(i)
Includes an option for the Trust to renew the land lease for a further term of 12 years upon expiry.
(j)
At the end of the 30-year lease, the Trust has the option to renew the land lease for Building A for a further term of 26 years and to
renew the land lease for Building B for a further term of 16 years, 4 months and 16 days.
(k)
Ascendas Z-Link (“Z-Link”) was acquired from a related party of the Manager, Ascendas China Industrial and Business Parks Fund
(acting through its trustee, Ascendas China Trustee Pte. Ltd.), in the previous financial year. This property was acquired via the
acquisition of shares in Ascendas ZPark (Singapore) Pte. Ltd. (“AZPark”). AZPark owns all the paid in capital in Ascendas Hi-Tech
Development (Beijing) Co., Limited (“AHTDBC”), which in turn owns the investment property, Z-Link in the People’s Republic of
China (”PRC”) (see Note 9).
(l)
FoodAxis @ Senoko was first acquired on 15 May 2007 and was subsequently redeveloped to maximise the allowable plot ratio. The
development was completed on 16 February 2012 and transferred from investment properties under development to investment properties.
@ Portfolio 3 – Properties pledged as securities for the credit facility granted by Emerald Assets Limited in relation to the term loan of $395.0 million (see Note 16).
+ Techplace II was released from Portfolio 3 and substituted with Corporation Place, 5 Tai Seng Drive and Nan Wah Building during the current financial year.
# Portfolio CL – Properties pledged as securities for the credit facility granted by Ruby Assets Pte. Ltd. in relation to the collateral loan of $300.0 million (see Note 17).
& In the previous financial year, Z-Link was pledged as security for a credit facility granted by United Overseas Bank Limited, Shanghai Branch.
*
The property segment “Hi-Specs Industrial Properties” was formerly known as “Hi-Tech Industrial Properties”
The accompanying notes form an integral part of these financial statements.
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