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Hyprop Investments Limited
Group annual financial statements 2016
33.
Business combinations and transactions with subsidiary
continued
June 2016
Consideration
transferred
R000
33.4 Goodwill
Consideration transferred
707 471
Less:
Fair value of identifiable net assets acquired (75%)
(689 337)
Goodwill
18 134
The goodwill relates to Hyprop’s acquisition of Hyprop Ikeja Mall and was calculated in terms of IFRS 3
Business
Combinations
. The goodwill represents the amount by which the consideration paid exceeds the fair value of net
assets acquired and has no impact on distributable earnings.
The goodwill arose as a consequence of the effective purchase price for Ikeja City Mall (on the acquisition date of
17 November 2015) being higher than the fair valuation of the property on 31 December 2014.
33.5 Impact of acquisition on results of the group for June 2016
Revenue for the 2016 year includes R226,6 million attributable to revenue from Ikeja City Mall.
Included in profit for the 2016 year is R89,1 million from Ikeja City Mall.
Had the business combination been effected on 1 July 2015, the total Hyprop consolidated revenue would have been
R300 million and the total Hyprop consolidated profit would have been R21 million.
33.6 Net cash outflow on acquisition of Ikeja City Mall
Consideration transferred
Cash
707 471
Less:
Cash and cash equivalents acquired
(48 964)
Net cash outflow
658 507
34.
Related-parties and related-party transactions
Related parties with whom the group transacted during the period were:
GROUP
June 2016
R000
GROUP
June 2015
R000
AttAfrica
Loan receivable
2 633 939
1 739 053
Interest received
195 852
103 971
Relationship: co-investor and joint venture
Manda Hill Mauritius
Loan receivable
624 617
519 072
Interest received
38 705
20 031
Relationship: joint venture
PDI Investments Limited
Credit enhancement fee
7 372
Relationship: co-investor and directorship
All related-party transactions were made on terms equivalent to those in similar arm’s-length transactions.