Singapore Press Holdings annual report 2011 Singapore Press ...

Notes to the
Financial StatementS
August 31, 2011
130 Singapore Press Holdings annual report 2011
9. INVESTMENT PROPERTIES
Group
2011 2010
S$’000 S$’000
Investment properties
Cost
Beginning of financial year 1,252,635 1,247,527
Additions 16,971 8,280
Transferred from Investment property under development 582,204 -
Write-off of renovations and fittings - (3,172)
End of financial year 1,851,810 1,252,635
Accumulated depreciation and impairment losses
Beginning of financial year 81,658 73,062
Depreciation charge for the year 15,893 9,319
Write-off of renovations and fittings - (723)
End of financial year 97,551 81,658
Net book value at end of financial year 1,754,259 1,170,977
Investment property under development
Beginning of financial year 559,092 -
Additions 23,112 559,092
Transferred to Investment properties (582,204) -
Net book value at end of financial year - 559,092
Total net book value 1,754,259 1,730,069
Fair value 3,020,083 2,841,992
During the financial year, The Clementi Mall commenced operations upon receiving the Temporary
Occupation Permits.
The fair value of the investment properties as at balance sheet date was stated based on independent
professional valuations, determined on an open market value basis. Valuation of the Group’s investment
properties, Paragon on Orchard Road and The Clementi Mall on Commonwealth Avenue West/Clementi
Avenue 3, was carried out using the income method.
The Paragon on Orchard Road, with a carrying amount of S$1,164.8 million (2010: S$1,160.9 million), is
mortgaged to a bank as security for the loan facility of S$300 million (2010: S$610 million) granted to
Orchard 290 [Note 7(a)].
The following amounts are recognised in the income statement:
Group
2011 2010
S$’000 S$’000
Rental income 166,071 132,327
Direct operating expenses arising from investment properties
that generated rental income (58,705) (43,072)