Notes to the financial statements
Year ended 31 March 2016
4 Investment properties
Group
Trust
2016
2015
2016
2015
$’000
$’000
$’000
$’000
At 1 April
7,867,930
6,922,966
7,558,780
6,651,419
Acquisition of investment properties
961,360
308,190
437,329
801,190
Acquisition of a subsidiary
646,901
459,888
–
–
Transfer to property held for sale
–
(24,800)
–
(24,800)
Capital expenditure incurred
132,670
130,967
108,734
128,260
Transfer from plant and equipment
–
39
–
–
Disposal of investment properties
(13,900)
–
(13,900)
–
Effects of movement in exchange rates
6,042
23,648
–
–
9,601,003
7,820,898
8,090,943
7,556,069
Net fair value (losses)/gains on investment
properties recognised in the Statement
of Total Return (unrealised)
(2,349)
47,032
51,707
2,711
At 31 March
9,598,654
7,867,930
8,142,650
7,558,780
During the current financial year, the Group and the Trust divested BBR Building. In the previous financial year, 26 Senoko
Way was transferred from investment properties to property held for sale, following the proposed divestment of the
property. The carrying value of the property was $24.8 million as at 31 March 2015. The divestment was completed in
April 2015.
As at the reporting date, investment properties with an aggregate carrying amount of $1,104,500,000 (2015:
$1,093,240,000) have been pledged as collateral for the Exchangeable Collateralised Securities and certain term notes
issued by the Group (Note 15 and 16).
Measurement of fair value
Investment properties are stated at fair value based on valuations performed by independent professional valuers as at
31 March 2016. As at 31 March 2015, the investment properties were stated at fair value based on valuations performed
by independent valuers, except for The Kendall, which was acquired on 30 March 2015 and was recorded at the cost
incurred upon acquisition.
Critical judgements made in accounting for acquisitions
The Group acquires subsidiaries that own real estate, and individual real estate. At the time of acquisition, the Group
considers whether each acquisition represents the acquisition of business or the acquisition of an asset. The Group
accounts for an acquisition as a business combination where an integrated set of activities is acquired, in addition to
the property. In determining whether an integrated set of activities is acquired, the Group considers whether significant
processes such as strategic management and operational processes are acquired. Where significant processes are
acquired, the acquisition is considered an acquisition of a business. Where the acquisition of the subsidiary or real estate
does not represent a business, it is accounted for as an acquisition of group of assets and liabilities.
The Group assessed the acquisition of the subsidiaries for the financial years presented as acquisitions of assets as no
strategic management function and operational processes were acquired along with the investment properties.
.168
A-REIT ANNUAL REPORT
2015/2016
