Page 97 - SAR141018_Forterra AR 2013

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FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
95
4
INVESTMENT PROPERTIES (CONTINUED)
Included in the costs capitalised above are capitalised borrowing costs related to the construction
of The Place (formerly known as The HQ) Extension of approximately $5,865,000 (2012:
$5,655,000).
The investment properties are stated at their fair values based on valuations undertaken by
an independent international valuation firm, DTZ Debenham Tie Leung International Property
Advisers (Shanghai) Co., Ltd., on 31 December 2013.
Description
of property
Type
Remaining
lease term Location
2013
valuation
2012
valuation
$’000 $’000
The Place Existing Office/Retail
30 years No. 100, Zun Yi
Road, Changning
District, Shanghai
1,269,480 1,209,576
The Place Extension Office/Retail
40 years No. 100, Zun Yi
Road, Changning
District, Shanghai
429,705 331,633
Central Park Mall,
 Qingdao
Office/Retail
35 years Central Park
Mall, Qinlin Road,
Laoshan District,
Qingdao
418,425 395,251
Huai Hai Mall
Office/Retail
29 years No. 158, Middle
Huai Hai Road,
Shanghai
170,462 158,752
Forterra House
Office/Retail
41 years No. 1568, Huashan
Road, Changning
District, Shanghai
150,407 141,444
2,438,479 2,236,656
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, and that the valuation reports are
prepared in accordance with recognised appraisal and valuation standards. The key assumptions
used to determine the fair value of investment properties include projected rental rates, market-
corroborated capitalisation yields, terminal yields and discount rates.