Page 116 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
114
19 OTHER GAINS
2013 2012
$’000 $’000
Gain from restructuring of the original acquisition
arrangements of Central Park Mall 4,202 –
Gain from disposal of subsidiaries which hold Central Plaza 17,964 –
22,166 –
Restructuring of the original acquisition arrangements of Central Park Mall
During the year, the Trust undertook a restructuring of the original acquisition arrangements with
the former owner (the “Vendor”) of Central Park Mall, in respect of the amount due to the Vendor
of Central Park Mall, which pertained to the remaining consideration for the acquisition of the
property. The restructuring was completed on 29 August 2013, which reduced the outstanding
consideration of RMB73.3 million (equivalent to approximately $15.4 million) to RMB54.7 million
(equivalent to approximately $11.5 million), and resulted in the cancellation of the Trio convertible
notes of RMB25.0 million (equivalent to approximately $5.2 million) issued by the Trust to the
Vendor and the redeemed but unpaid amount of RMB14 million (equivalent to approximately $2.9
million), and termination of the top-up rent guarantee amount of RMB37.5 million (equivalent to
approximately $7.8 million) previously granted and due by the Vendor. The Group realised a net
gain of $4.2 million on the completion of the restructuring of original acquisition arrangements
with the Vendor.
Sale of Central Plaza
A gain of $17.96 million was recognised from the disposal of Central Plaza in May 2013. A summary
of the financial effects on the disposal of the subsidiaries which hold Central Plaza is as follows:
2013
$’000
Sale consideration for Central Plaza 249,107
Add: post-closing adjustment to the consideration as
agreed with the buyer 3,474
252,581