ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 53 NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION ESR Interim Report 2020 13. INVESTMENT PROPERTIES Completed investment properties Investment properties under construction Total US$’000 US$’000 US$’000 At 1 January 2019 (audited) 1,583,059 302,443 1,885,502 Additions 56,555 472,869 529,424 Acquisition of subsidiaries 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 (83,519) – (83,519) Disposal of subsidiaries (276,711) – (276,711) Disposal (231,110) – (231,110) Exchange realignment (34,783) (3,495) (38,278) At 31 December 2019 (audited) and 1 January 2020 1,558,752 1,227,174 2,785,926 Additions 18,978 167,971 186,949 Acquisition of subsidiaries (note 17) 87,648 36,539 124,187 Changes in fair values of investment properties 26,063 99,708 125,771 Transfer from investment properties under construction to completed investment properties 5,816 (5,816) – Reclassification to asset held for sale – (42,281) (42,281) Disposal of subsidiaries (note 18) (464,081) (137,263) (601,344) Exchange realignment (5,471) 12,042 6,571 At 30 June 2020 (unaudited) 1,227,705 1,358,074 2,585,779 (a) All completed investment properties and investment properties under construction of the Group were revalued at 30 June 2020 based on valuation performed by independent professionally qualified valuers, Beijing Colliers International Real Estate Valuation Co., Ltd., CBRE Valuation Pty Limited 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 analysed, and weighted against relevant factors 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.