Annual Report 2011/12 - International Entertainment Corporation

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201217. INVESTMENT PROPERTIES (Continued)The above investment properties are located on land under medium-term lease in the Philippines. Depreciation isprovided to write off the cost of investment properties over the lease term of the lease contract signed with PAGCORand after taking into account of the residual value, using the straight-line method.The fair value of the Group’s investment properties at 31 March 2012 was approximately HK$1,029 million (2011:HK$1,144 million). The fair value has been arrived at based on a valuation carried out by Jones Lang LaSalle CorporateAppraisal and Advisory Limited (“Jones Lang”), independent valuer not connected with the Group. Jones Lang is amember of the Hong Kong Institute of Surveyors. The valuation was arrived at by capitalising the estimated net rentalincome derived from the existing tenancies and taking into account the future growth potential with reference tohistorical rental trend achieved in previous years.18. FINANCIAL ASSETS AT FVTPL2012 2011HK$’000 HK$’000Financial assets at FVTPL comprise:– Debt securities notes listed overseas with fixed interest of 11.75%per annum and maturity date on 18 May 2015 (Note i) 46,020 74,100– 8% Perpetual subordinated capital securities listed overseas (Note ii) 21,317 21,23967,337 95,339Notes:(i)(ii)Issuer of the notes has an option to redeem the notes at a specified range of premium over the principal amount plus accruedinterest at different time periods before maturity date, subject to certain conditions.Issuer of the investment may redeem the capital securities at any time on or after 15 December 2015 or at any time upon theoccurrence of certain events at a redemption price equal to the principal plus accrued interest. Subject to certain conditions, onany coupon payment date, the issuer may exchange the capital securities in whole (but not in part) for perpetual non-cumulativedollar preference shares.The financial assets at FVTPL as at 31 March 2012 are denominated in USD, foreign currency of the relevant groupentities.International Entertainment Corporation - Annual Report 2011/12 71