ESR Group Limited Annual Report 2023 187 Notes to the Consolidated Financial Statements 31 December 2023 18. INVESTMENT PROPERTIES (continued) (a) All completed investment properties and investment properties under construction of the Group were revalued at 31 December 2023 based on valuation performed by independent professionally qualified valuers, Colliers Appraisal & Advisory Services Co. Ltd., Jones Lang LaSalle Property Consultants India Private Limited., JLL Morii Valuation & Advisory K.K., Jones Land LaSalle Corporate Appraisal and Advisory Limited, and Cushman & Wakefield K.K., at fair value. They are industry specialists in investment properties 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 all respective advantages and disadvantages 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: As at 31 December 2023 As at 31 December 2022 US$’000 US$’000 Within one year 57,915 58,891 After one year but within two years 45,853 69,345 After two years but within three years 24,917 17,044 After three years but within four years 15,102 5,409 After four years but within five years 9,079 3,123 After five years 3,124 6,043 155,990 159,855 (c) Certain of the Group’s completed investment properties and investment properties under construction with a fair value of US$2,896,812,000 (2022: US$2,802,672,000) were pledged to secure bank and other borrowings granted to the Group as disclosed in note 25. CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
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