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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
14. INVESTMENT PROPERTIES (CONT’D)
(d)
Hak Pengelolaan (“HPL”) Title
A HPL Title provides the land owner the “right to manage” a land created by the state. The holder of a Right
to Manage title may use the granted executing authority for the purpose of land utilisation and allocation
planning, utilisation of the land related to the role of such Indonesian government entities, partial assignment
of the land to third parties and/or land management in cooperation with third parties.
(e)
Kiosks Sale and Purchase Binding Agreement
This agreement could be entered into prior to entering into a deed of sale and purchase of land. Under a
Kiosks Sale and Purchase Binding Agreement, each of the parties agrees on the terms and conditions for the
sale and purchase but this agreement does not have the effect of transferring the ownership of the land to the
other party. Instead, subject to certain conditions in the agreement, the vendor is bound to sell the land and
the purchaser is bound to purchase the land. These agreements shall be executed in good faith and cannot
be revoked except by mutual agreement or pursuant to certain reasons which have been legally declared as
sufficient.
The investment properties are leased out to tenants under operating leases.
Certain investment properties at a carrying value of $478,872,000 (2013: $462,811,000) are pledged as security for
the bank facilities (Note 22A).
15. INTANGIBLE ASSET
Group
2014
2013
$’000
$’000
Cost:
Additions
34,033
–
At end of year
34,033
–
Net carrying amount:
At end of year
34,033
–
Intangible asset represents the unamortised aggregate rental guarantee amounts receivable by the Group from certain
master lease agreements for its 100% interest in Lippo Mall Kemang (Note 30). The remaining rental guarantee period
is for 3 (2013: Nil) years.
Notes to the Financial Statements
(Cont’d)
31 December 2014