| ANNUAL REPORT 2015
134
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
8. INVESTMENT PROPERTIES (cont’d)
(e) The fair value of investment properties of the Group are categorised as follows:
Level 1
Level 2
Level 3
Total
RM’000
RM’000
RM’000
RM’000
2015
Freehold land, shoplots and clubhouse
-
-
31,626
31,626
Long term leasehold land and shoplots
-
-
6,418
6,418
-
-
38,044
38,044
2014
Freehold land, shoplots and clubhouse
-
-
31,210
31,210
Long term leasehold land and shoplots
-
-
6,168
6,168
-
-
37,378
37,378
(i) There were no transfers between Level 1 and Level 2 fair value measurements during the financial years ended 30
June 2015 and 30 June 2014.
(ii) As at 30 June 2015 and 2014, the valuation of investment properties at Level 3 fair value were recommended by
the Directors based on an indicative market value from the valuation exercise carried out on an open market value
basis by an external and independent property valuer, Akram Real Estate Professional and Co. Sdn. Bhd., having
appropriate recognised professional qualifications and recent experience in the location and category of property
being valued, and who is a member of The Institution of Surveyors Malaysia.
(iii) The other investment property at Level 3 fair value was determined by considering the aggregate of the present
value of the estimated cash flows expected to be received from renting out the properties using yield rates as follows:
Yield
2015
2014
%
%
Freehold land, shoplots and clubhouse
8.1
7.2
(iv) The fair value measurements of the investment properties are based on the highest and best use which does not
differ from their actual use. The investment properties of the Group are mainly used to generate rental income.
(v) In the previous financial year, the fair value of investment properties under construction amounted to RM61,415,000
could not be reliably and separately determined until the construction was completed or the fair value became
reliably determinable, whichever was earlier.
(f) Interest expense on term loan specifically related to investment properties capitalised within additions of the Group
during the financial year amounted to RM616,105 (2014: RM1,425,476).
(g) As at the end of the reporting period, the title deed for investment properties of the subsidiaries with carrying amounts
of RM1,810,000 (2014: RM1,810,000) are in the process of being transferred and registered in the name of the subsidiaries.
