FORWARD TOGETHER 72 Notes to Condensed Consolidated Financial Information 30 June 2023 13. INVESTMENT PROPERTIES (continued) (a) All completed investment properties and investment properties under construction of the Group were revalued at 30 June 2023 based on valuation performed by independent professionally qualified valuers, Beijing Colliers International Real Estate Valuation Co., Ltd., Jones Lang LaSalle Corporate Appraisal and Advisory Limited, Jones Lang LaSalle Property Consultants India Private Limited., Cushman & Wakefield K.K., and Cushman & Wakefield Vietnam Ltd. at fair value. They are industry specialists in investment property valuation. In determining fair value, a combination of approaches and methods were used, including the Direct Comparison Method and Discounted Cash Flow Method. The Direct Comparison Method is applied based on the market prices of comparable properties. Comparable properties with similar sizes, characters and locations were analysed, and weighted against relevant factors to arrive at the fair value of the properties. The Discounted Cash Flow Method measures the value of a property by the present worth of the net economic benefit to be received over the life of the asset. (b) Completed investment properties leased out under operating leases The Group leases out completed investment properties under operating lease arrangements. All leases run for a period of one to ten years, with an option to renew the leases after the expiry dates, at which time all terms will be renegotiated. The Group’s total future minimum lease receivables under non-cancellable operating leases generated from completed investment properties are as follows: 30 June 2023 31 December 2022 (Unaudited) (Audited) US$’000 US$’000 Within one year 48,053 58,891 After one year but within two years 34,613 69,345 After two years but within three years 21,050 17,044 After three years but within four years 10,864 5,409 After four years but within five years 7,933 3,123 After five years 5,263 6,043 127,776 159,855 (c) Certain of the Group’s completed investment properties and investment properties under construction with a fair value of US$2,781,017,000 (31 December 2022: US$2,802,672,000) were pledged to secure bank and other borrowings granted to the Group (note 16). (d) Fair value hierarchy The following table illustrates the fair value measurement hierarchy of the Group’s investment properties: For the six months ended 30 June 2023 2022 (Unaudited) (Unaudited) US$’000 US$’000 Quoted prices in active markets (Level 1) – – Significant observable inputs (Level 2) 267,935 577,894 Significant unobservable inputs (Level 3) 2,882,819 2,588,894 3,150,754 3,166,788 During the period, there were no transfers of fair value measurement between Level 1 and Level 2 (30 June 2022: nil).
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