NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
14.
INVESTMENT PROPERTIES (CONT’D)
(1)
The acquisitions in 2015 relate to the acquisitions of Palembang Icon and Lippo Plaza Batu. This amount
also included acquisition fees of $1,069,000 and other acquisition related expenses of $1,980,000.
The acquisition in 2014 relates to the acquisition of Lippo Mall Kemang. This amount also included an
acquisition fee of $3,620,000 and other acquisition related expenses of $1,475,000 respectively.
These investment properties include the mechanical and electrical equipment located in the respective properties.
The fair value of each investment property was measured in December 2015 based on the highest and best use
method to reflect the actual market state and circumstances as of the end of the reporting year. The fair value
was based on valuations made by independent professional valuers on a systematic basis at least once yearly. The
independent professional valuers hold recognised and relevant professional qualifications with sufficient recent
experience in the location and category of the investment property being valued. The valuations were based on
discounted cash flow method and market capitalisation method. There has been no change to the valuation
technique during the year. Management determined that the highest and best use of the asset is the current
use and that it would provide maximum value to market participants principally through its use in combination
with other assets.
The fair values were made by the following firms of independent professional valuers:-
2015:
Name of Independent
Professional Valuers
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, Sun Plaza, Palembang
Icon and Lippo Plaza Batu.
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, Lippo Mall Kemang, Pluit Village and Plaza
Medan Fair.
Savills Valuation and Professional
Services (S) Pte Ltd
- Tamini Square, Lippo Plaza Kramat Jati, Palembang Square, Palembang
Square Extension, Pejaten Village and Binjai Supermall.
2014:
Name of Independent
Professional Valuers
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.
ANNUAL REPORT 2015
103
