NOTES TO THE FINANCIAL STATEMENTS — NOTE 33

33. Business combinations and transactions with subsidiary
33.1 Subsidiary acquired

On 17 November 2015, Hyprop acquired a 100% interest in Hyprop Ikeja Mall Limited. Hyprop Ikeja Mall Limited holds a 75% interest in Gruppo Investments Nigeria Limited (Gruppo). Gruppo is the owner of Ikeja City Mall in Lagos, Nigeria.

  Principal activity Date of
acquis		 Proportion of
voting equity
interest acquired		   June 2016
Consideration
transferred
R000		  
Hyprop Ikeja Mall Limited Property investment company 17 November 2015 100%   707 471  
Gruppo Investments Nigeria Limited Property investment company — renting retail space to tenants 17 November 2015 75%      
    Principal activity Date of
acquisition		 Proportion of
voting equity
interest acquired		   June 2016
Consideration
transferred
R000		  
33.2 Assets acquired and liabilities recognised at the date of acquisition(1) Valuation techniques          
  Non-current assets          
  Investment property (Refer to note 2.2 — Investment property) Discounted cash flow method(DCF)       2 138 690  
  Building appurtenances and tenant installations (Refer to note 3.4 — Building appurtenances and tenant installations)         5 327  
  Current assets          
  Trade and other receivables         32 766  
  Cash and cash equivalents         48 964  
  Non-current liabilities          
  Long-term loans Amortised cost       1 217 968  
  Deferred taxation         47 909  
  Current liabilities          
  Trade and other payables         151 536  
  Derivative instrument         2 365  
  Net assets (100%)         805 969  
33.3 Non-controlling interests            
  The non-controlling interest recognised at the acquisition date was measured with reference to the agreements concluded with non-controlling shareholders The non-controlling interest is recognised at its proportionate interest in the subsidiary acquired.     25%(2)   116 632  
  (1) All amounts reflect 100% of acquisition values
  (2) Represents minority interest in Ikeja City Mall, Lagos, Nigeria
    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 17November 2015) being higherthan 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   

NOTES TO THE FINANCIAL STATEMENTS — NOTE 33