Page 103 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 101

17.1 Investment property

Investment property comprises a number of commercial properties held for short-term rentals and long-term leases to third parties and premises held for capital appreciation. Each of the long-term leases contains an initial non-cancellable period of 30 years. Subsequent renewals are negotiated with the lessee.

Investment property valuations are based on independent assessments made by a member of the Australian Property Institute. As at 30 June 2011, a $7 million decrease (2010: $12 million decrease) in the fair value of investment property was recorded in the proft or loss.

The Suncorp Group has entered into lease securitisation and defeasance transactions under which the Suncorp Group has agreed not to sell or create a charge over investment properties with a fair value of $105 million (2010: $114 million) without the consent of the other parties to the transaction.

17.2 Investment in associates and joint venture entities

ASSOCIATES JOINT VENTURE ENTITIES

2011 2010 2011 2010 $m $m $m $m

Summary of fnancial information of equity accounted investees

Total assets 4 25 94 153 Total liabilities – 10 60 89 Revenues 6 52 125 604 Expenses 6 51 118 549 Share of net proft (loss) recognised – 1 4 28

There are no material lease commitments, other commitments or contingent liabilities of the associates or joint venture entities.

17.3 Investment in joint venture operations and assets

Ownership interest 2011 2010 Principal activity % %

Joint venture operations

National Transport Insurance Facilitation of insurance arrangements 50 50 Joint venture assets

Polaris data centre Property investment 50 50 Spring farm residential development Property development 50 50

Share of joint venture assets included in the consolidated statement of fnancial position are as follows:

CONSOLIDATED

2011 2010 $m $m

Other assets – development property 37 44 Property, plant and equipment 69 69 Total joint venture assets 106 113

There are no material commitments related to the joint venture assets.