Page 31 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 66

NOTES TO THE FINANCIAL STATEMENTS

Period from 19 May 2010 (date of constitution) to 31 December 2010

4 Investment properties

Group 2010 $’000

At 19 May 2010 (date of constitution) – Acquisition of subsidiaries (Note 15) 1,940,710 Additions 4,716 Changes in fair value 33,040 Exchange translation (104,305) At 31 December 2010 1,874,161

Investment properties with an aggregate carrying value of $1,849.7 million are pledged as security for banking facilities granted as at 31 December 2010 (see Note 12).

The investment properties are stated at their fair values based on valuations undertaken by independent international valuation firm, DTZ Debenham Tie Leung Ltd, on 31 December 2010.

Description of property

Year of completion/ projected

completion Type Location Valuation

$’000

City Center 2002 Office/Retail No. 118, Zi Yun Road,

Changning District, Shanghai

1,122,077

City Center Extension

2012 Office/Retail No. 100, Zi Yun Road,

Changning District, Shanghai

260,725

Central Plaza 1998 Office/Retail No. 227, Huangpi Road North,

Huangpu District, Shanghai

335,413

Treasury Building 2006 Office/Retail No. 1568, Huashan Road,

Changning District, Shanghai

131,435

Beijing Logistics Park 2011 Office/Logistics Shunyi District, Beijing 24,511

1,874,161

The Trustee-Manager believes that the independent valuer has appropriate professional qualifications and experience in the location and category of the properties being valued. In determining the fair value, the valuer used the direct comparison approach, discounted cash flow approach, income capitalisation approach and residual approach which involve certain estimates. The Trustee-Manager has exercised its judgement and is satisfied that the valuation methods and estimates are reflective of the current market conditions. The key assumptions used to determine the fair value of investment properties include market-corroborated capitalisation yields, terminal yields and discount rates.