Notes to the Consolidated Financial Statements - Uni-Asia Finance ...

16
Uni-Asia Finance Corporation Annual Report 2009
Our Business
We could not increase our investment / asset management
portfolio because the market situation did not allow it. Rather,
we sold some of our residential properties in order to deleverage
and cope with the depressed financial market conditions.
No. of Unit
3000
2500
2000
1500
1000
500
Assets under management (residential property)
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
Note: Including Capital Advisers’ own investment projects
and properties under constructions
As at 31 December 2009, we were engaged as the asset
manager for 11 hotels, a reduction from 14 hotels a year ago.
The number of hotel rooms under our management also
decreased from FY2008.
No. of Room
3000
2500
2000
1500
1000
500
0
Assets under management (hotel property)
Dec-05 Dec-06 Dec-07 Dec-08 Dec-09
Note: Including Capital Advisers’ own investment projects
and properties under constructions
The value of our investment was also affected and we needed to
recognise fair value adjustment loss on investment in residential
property funds in FY2009 (US$1.6 million).
Investment / management of Hotel Project
From 2001, Capital Advisers directed its attention to the asset
investment / management business in the hotel property sector.
The focus has been on investment in limited-service hotels.
Hotel Name
No.
of
Bldgs
No.
of
Rooms
Hotel
Operated
by CA
Group
CA’s
equity
investment
Skycourt Hotel Asakusa 1 96 N Y
Skycourt Hotel Asagaya 1 112 N Y
Toyocho Vista Hotel 1 144 Y Y
Hotel Vista Sapporo
Nakajimakohen
1 113 Y Y
Hotel Vista Shimizu 1 152 Y Y
Hotel Vista Premio Dojima 1 141 Y Y
Hotel Vista Atsugi 1 165 Y Y
Hotel Vista
Kumamoto Airport
Assets under management (hotel property)
(As at 31 Dec 2009)
1 139 Y Y
Hotel Vista Ebina 1 176 Y Y
Hotel Vista Grande Osaka 1 304 Y N
Hotel Vista Kyoto 1 215 Y Y
Total 11 1,757
The asset management fee of some of the hotels has also
decreased from FY2008. This is because our fees are usually
variable, depending on the performance of the hotel. Most of
the hotels we managed were adversely affected by the global
and domestic recession, which resulted in a decrease in the
number of business travellers as well as tourists from overseas
due to an appreciation of the Japanese Yen.
Our investments in hotel funds are evaluated based on the
performance of property owning SPCs, which recognise the hotel
as fixed assets. Our investments in hotel assets are thus subject
to an impairment test. We recognised fair value adjustment loss
on investment in hotel funds (US$4.2 million), which affected
our financial results for FY2009.
Note: Including Capital Advisers’ own investment project.