notes to the financial statements - Food Empire Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
13. Investment properties (cont’d)
The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct
or develop investment property or for repairs, maintenance or enhancements.
Properties pledged as security
The portion of the freehold property at 31 Harrison Road, Singapore 369649 whose carrying amount is US$4,191,000 as at 31
December 2012 (2011: US$3,976,000) was mortgaged to secure bank loans.
The freehold property at 81 Playfair Road, Singapore 367999 whose carrying amount is US$6,568,000 as at 31 December 2012
(2011: US$6,180,000) was mortgaged to secure bank loans.
Valuation of investment properties
Based on a valuation performed by independent appraisers, Allied Appraisal Consultants Pte Ltd and DTZ Debenham Tie Leung (Sea)
Pte Ltd on 31 December 2012 and Nil (2011: 27 December 2011 and 7 October 2011) respectively, there are no impairment required
for the carrying amounts of these properties.
The valuations are estimates of the amounts for which the assets could be exchanged between a knowledgeable willing buyer and
knowledgeable willing seller on an arm’s length transaction at the valuation date. The fair value of the investment properties is
determined at US$18,329,000 (2011: US$11,937,000).
Details of investment properties
The investment properties held by the Group as at 31 December 2012 are as follows:
Location Description Existing use Tenure of land
1. No. 30 Mandai Estate
Mandai Industrial Building
#05-09 Singapore 729918
1 unit of a
6-Storey
Building
Warehouse/
Office
Freehold
2. #03-01, #04-01, #05-01,
#06-01, #07-01 and #07-02 of
31 Harrison Road Singapore 369649*
6 units of a
11-Storey
Building
Warehouse/
Office
Freehold
3. 81 Playfair Road Singapore 367999 Construction in
progress
Construction in
progress
Freehold
* Relates to the portion of the freehold properties which were leased out to third parties. See Note 12 for more details.
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