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NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2016
Hyprop Investments Limited
Group annual financial statements 2016
112
2.
Investment property
Note
GROUP
June 2016
R000
GROUP
June 2015
R000
2.1
Net carrying value
Historical cost
15 811 661
13 411 225
Accumulated fair value movements
13 599 786
12 319 452
Non-current assets classified as held-for-sale
13
(1 224 090)
(1 218 899)
28 187 357
24 511 778
2.2 Movement for the year
Investment property at valuation at 1 July
24 511 778
21 795 442
Capital expenditure
108 481
333 659
African Land restructure
(1 618 506)
Acquired through business combination
33.2
2 138 690
Foreign currency translation movement
151 234
Change in fair value
1 382 134
2 467 113
Disposals
(3 783)
Interest capitalised
22
2 031
2 472
Straight-line rental income accrual
(101 801)
(60 085)
Transfer from development property
1 849 000
Transfer to non-current assets held-for-sale
(5 190)
(253 534)
Investment property at valuation
28 187 357
24 511 778
2.3 Reconciliation to independent valuation
Investment property at valuation at year-end
28 187 357
24 511 778
Straight-line rental income accrual
515 206
413 826
Building appurtenances and tenant installations
3
126 100
77 300
Centre management assets
(6 465)
(2 274)
Independent valuation
(1)
28 822 198
25 000 630
Capitalisation rate used to determine interest capitalised
7,7%
7,7%
(1)
Excludes property held-for-sale
Included in investment property held-for-sale is property under leasehold in respect of Willowbridge North. The lessor is Transnet Limited
and the lease term runs until 30 June 2033.
2.4 Encumbered investment property
The following properties have been pledged as security by means of mortgage bonds (
refer to note 17 – Borrowings
):
To Standard Finance (Isle of Man) Limited and Standard Bank of South Africa Limited to secure borrowing facilities of USD280 million:
1. A 75,15% undivided share in The Glen
2. A 40% undivided share in Canal Walk.
To Rand Merchant Bank (a division of FirstRand Bank Limited) to secure borrowing facilities totalling R200 million and USD30 million:
A 40% undivided share in Canal Walk.
To Nedbank Limited to secure borrowing facilities totalling R2,7 billion:
1. CapeGate
2. Atterbury Value Mart
3. Woodlands Boulevard
4. Clearwater Mall
5. Willowbridge South.
To Stanbic IBTC Bank PLC to secure borrowing facilities totalling USD36,2 million:
Ikeja City Mall
To Investec Asset Management Proprietary Limited to secure borrowing facilities totalling USD27,2 million:
Ikeja City Mall
Encumbered properties total R20,8 billion (2015: R24,3 billion).
Subsequent to year-end, Nedbank began a process of releasing the bonds over Woodlands Boulevard, Clearwater Mall and Willowbridge
South, after R1,2 billion of existing debt facilities matured and were repaid, being replaced with debt capital market funding (corporate
bonds).
Refer to note 36 – Capital management and note 37 – Events after the reporting date
.