96
STAMFORD LAND CORPORATION LTD
Notes to Financial Statements
20
INVESTMENT PROPERTIES (CONT’D)
Fair value of freehold investment property was based on external valuation from an independent and
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for the freehold investment property was last obtained in the financial year ended 31 March 2016.
The following methods were used to value investment properties:
Ŕ
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adjusted for various factors including the age, location and condition, to reflect differences
with the investment properties (direct sales comparison approach).
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comparable properties (capitalisation approach).
The following table presents the information about fair value measurements using significant
unobservable inputs:
Description
Tenure
Valuation
method
Key unobservable
inputs
Relationship of key
unobservable inputs to
fair value
Commercial
buildings –
1FSUI
Freehold Capitalisation
method
Discounted
cash flow
method
Capitalisation rate:
2016: 7.75%
Discount rate: 7.75%
(2015: 8.25%)
The estimated fair value
varies inversely against
the capitalisation rate
and discount rate.
0GGJDF CVJMEJOH
– Singapore
99-year
lease
from 1985
Direct sales
comparison
1SJDF QFS TRVBSF GPPU
2016: $1,700 to $1,800
(2015: $1,600 to $1,800)
The estimated
fair value increases
in proportion with the
QSJDF QFS TRVBSF GPPU
Valuations reflect when appropriate, the type of tenants actually in occupation or responsible for
meeting lease commitments or likely to be in occupation after letting vacant accommodation, the
allocation of maintenance and insurance responsibilities between the Group and the lessee, and
the remaining economic life of the property. When rent reviews or lease renewals are pending with
anticipated reversionary increases, it is assumed that all notices, and when appropriate counter-
notices, have been served validly and within the appropriate time.
Investment properties at carrying value of $136,105,000 (2015: $162,161,000) are mortgaged as
securities for the bank facilities (Note 25).
