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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
14. INVESTMENT PROPERTIES (CONT’D)
The fair values were made by the following firms of independent professional valuers:-
2014:
Name of Independent
Professional Valuer
Name of Retail Malls and Spaces
KJPP Wilson & Rekan
- Bandung Indah Plaza, Gajah Mada Plaza, Mal Lippo Cikarang, Ekalokasari Plaza,
Plaza Semanggi, Istana Plaza, Cibubur Junction and Sun Plaza.
KJPP Rengganis, Hamid
& Rekan
- Mall WTC Matahari Units, Java Supermall Units, Plaza Madiun Units, Depok Town
Square Units, Malang Town Square Units, Metropolis Town Square Units, Grand
Palladium Units and Lippo Mall Kemang.
KJPP Hendra Gunawan
dan Rekan
- Tamini Square, Lippo Plaza Kramat Jati, Palembang Square, Palembang Square
Extension, Pejaten Village, Binjai Supermall, Pluit Village and Plaza Medan Fair.
2013:
Name of Independent
Professional Valuer
Name of Retail Malls and Spaces
KJPP Winarta & Rekan - Bandung Indah Plaza, Gajah Mada Plaza, Mal Lippo Cikarang, Ekalokasari Plaza,
Plaza Semanggi, Istana Plaza, Cibubur Junction and Sun Plaza.
KJPP Wilson & Rekan
- Mall WTC Matahari Units, Java Supermall Units, Plaza Madiun Units, Depok Town
Square Units, Malang Town Square Units, Metropolis Town Square Units and Grand
Palladium Units.
KJPP Rengganis, Hamid
& Rekan
- Tamini Square, Lippo Plaza Kramat Jati, Palembang Square, Palembang Square
Extension, Pejaten Village and Binjai Supermall.
KJPP Hendra Gunawan
dan Rekan
Pluit Village, Plaza Medan Fair
All fair value measurements of investment properties are based on discounted method and are categorised within
Level 3 of the fair value hierarchy. The information about the significant unobservable inputs used in the fair value
measurements are as follows:
2014
2013
1.
Estimated discount rates using pre-tax rates that reflect current
market assessments at the risks specific to the properties
12.5% to 13.3% 12.5% to 13.6%
2.
Growth rates
1.0% to 7.5%
3.0% to 7.5%
3.
Terminal discount rates
8.0% to 9.1% 8.0% to 11.5%
4.
Cash flow forecasts derived from the most recent financial
budgets and plans approved by management
Note 1
Note 1
Note 1: Discounted cash flow analysis over the remaining lease period for existing Build, Operate and Transfer
(“BOT”) malls, over a 10-year projection for non-BOT malls and for retail spaces.
Relationship of unobservable inputs to fair value:
1.
Discount rates
– The higher the discount rates, the lower the fair value.
2.
Growth rates
– The higher the growth rates, the higher the fair value.
3.
Terminal discount rates – The higher the terminal discount rates, the lower the fair value.
Notes to the Financial Statements
(Cont’d)
31 December 2014
