ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 185 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 19. INVESTMENT PROPERTIES Completed investment properties Investment properties under construction Total USD’000 USD’000 USD’000 At 1 January 2018 1,010,682 178,521 1,189,203 Additions 4,287 94,897 99,184 Acquisition of subsidiaries 467,959 25,699 493,658 Changes in fair values of investment properties 109,688 62,779 172,467 Transfer from investment properties under construction to completed investment properties 45,801 (45,801) – Disposal of subsidiaries (514) – (514) Exchange realignment (54,844) (13,652) (68,496) At 31 December 2018 and 1 January 2019 1,583,059 302,443 1,885,502 Additions 56,555 472,869 529,424 Acquisition of subsidiaries (note 34) 767,380 7,155 774,535 Changes in fair values of investment properties 68,568 157,515 226,083 Transfer from investment properties under construction to completed investment properties 101,598 (101,598) – Transfer from completed investment properties to investment properties under construction for redevelopment (392,285) 392,285 – Reclassification to asset held for sale (note 32) (83,519) – (83,519) Disposal of subsidiaries (note 36) (276,711) – (276,711) Disposal (231,110) – (231,110) Exchange realignment (34,783) (3,495) (38,278) At 31 December 2019 1,558,752 1,227,174 2,785,926 (a) All completed investment properties and investment properties under construction of the Group were revalued at 31 December 2019 based on valuation performed by independent professionally qualified valuers, Beijing Colliers International Real Estate Valuation Co., Ltd., CBRE Valuation Pty Limited, Jones Lang LaSalle Advisory Services Pty Ltd. and Cushman & Wakefield K.K. at fair value. They are industry specialists in investment property valuation. In determining fair value, a combination of approaches andmethods 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 analyzed, and weighted against all respective advantages and disadvantages to arrive at the fair value of the property. 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.