(1)
These properties are leased to Parkway Hospitals Singapore Pte. Ltd., a related corporation of the Manager of the
Trust under separate master lease agreements, which contain an initial term of 15 years from 23 August 2007 with
an option to extend the lease of each of these properties for a further term of 15 years. On 31 December 2015, the
appraised value of these properties was determined by Knight Frank Pte. Ltd., using capitalisation and discounted
cash flow approaches.
(2)
On 31 December 2015, independent valuations of these properties were undertaken by International Appraisals
Incorporated, DTZ Debenham Tie Leung K.K. and Colliers International using direct income, cost and discounted
cash flow approaches.
(3)
On 19 December 2014, the Group executed an agreement to participate as an investor in relation to the acquisition of
a nursing home from Oueikikaku Kabushiki Kaisha for a total consideration of JPY1,700 million (approximately $18.9
million). The appraised value of the property as at 31 October 2014 was JPY1,810 million (approximately $20.1 million).
The valuation was prepared using the cost and discounted cash flow approaches. The acquisition was completed on
6 January 2015. On 31 December 2015, the appraised value of the property was determined by Colliers International
using direct income, cost and discounted cash flow approaches.
(4)
On 16 March 2015, the Group executed two agreements to participate as an investor in relation to the acquisition of
four nursing homes and a group home from Ostara Japan One TMK and UBI Kabushiki Kaisha for a consideration of
JPY5,977 million (approximately $67.9 million). The appraised value of these properties as at 1 February 2015 was
JPY5,997 million (approximately $68.1 million). The valuation was prepared using the cost and discounted cash flow
approaches. The acquisition was completed on 23 March 2015. On 31 December 2015, the appraised value of these
properties was determined by Colliers International using direct income, cost and discounted cash flow approaches.
(5)
On 31 December 2015, the appraised value of the property was determined by DTZ Nawawi Tie Leung Property
Consultants Sdn. Bhd. using capitalisation and direct comparison approaches.
The Manager of the Trust believes that the independent valuers have appropriate professional qualifications and recent
experience in the location and category of the properties being valued. The net change in fair value of the properties has
been taken to the Statement of Total Return.
Portfolio
statements
As at 31 December 2015
The accompanying notes form an integral part of these financial statements.
ParkwayLife REIT
Annual Report 2015
92
