ESR IR 2021 - EN

64 STEP FORWARD Notes to Condensed Consolidated Financial Information 30 June 2021 13. INVESTMENT PROPERTIES Completed investment properties Investment properties under construction Total US$’000 US$’000 US$’000 At 1 January 2020 1,558,752 1,227,174 2,785,926 Additions 20,108 314,169 334,277 Acquisition of subsidiaries 87,648 46,527 134,175 Changes in fair values of investment properties 53,717 170,963 224,680 Transfer from investment properties under construction to completed investment properties 189,772 (189,772) – Reclassification to asset held for sale – (6,732) (6,732) Disposal of subsidiaries (464,081) (181,736) (645,817) Disposal (86,174) (261,006) (347,180) Exchange realignment 94,267 90,121 184,388 At 31 December 2020 (audited) and 1 January 2021 1,454,009 1,209,708 2,663,717 Additions 439,581 122,990 562,571 Acquisition of subsidiaries (note 18) 226,364 – 226,364 Changes in fair values of investment properties 63,253 102,648 165,901 Transfer from investment properties under construction to completed investment properties 147,295 (147,295) – Exchange realignment 3,349 (23,663) (20,314) At 30 June 2021 (unaudited) 2,333,851 1,264,388 3,598,239 (a) All completed investment properties and investment properties under construction of the Group were revalued at 30 June 2021 based on valuation performed by independent professionally qualified valuers, Beijing Colliers International Real Estate Valuation Co., Ltd., Savills Valuation and Professional Services Pte 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 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 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.