109 / 148
Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
107
2.
Investment property
Note
June 2017
R000
June 2016
R000
2.1
Net carrying value
Historical cost
14 830 378
15 811 661
Accumulated fair value movements
14 713 281
13 599 786
Assets classified as held-for-sale
13
(415 182)
(1 224 090)
29 128 477
28 187 357
2.2
Movement for the year
Investment property at valuation at 1 July
28 187 357
24 511 778
Capital expenditure
123 721
108 481
Acquired through business combination
2 138 690
Foreign currency translation difference
(270 183)
151 234
Change in fair value
1 181 786
1 382 134
Interest capitalised
22
872
2 031
Straight-line rental income accrual
(39 587)
(101 801)
Transfer to non-current assets held-for-sale
(55 489)
(5 190)
Investment property at valuation
29 128 477
28 187 357
2.3
Reconciliation to independent valuation
Investment property at valuation at year-end
29 128 477
28 187 357
Straight-line rental income accrual
553 119
515 206
Building appurtenances and tenant installations
148 530
126 100
Centre management assets
(4 794)
(6 465)
Independent valuation
(1)
29 825 333
28 822 198
Capitalisation rate used to determine interest capitalised
8,3%
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. Subsequent to year-end, Willowbridge North was sold for R225 million and is anticipated to transfer in
September 2017.
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 Old Mutual Specialised Finance Proprietary Limited to secure borrowing facilities of R400 million:
Somerset Mall
To Rand Merchant Bank (a division of FirstRand Bank Limited) to secure borrowing facilities totalling R200 million, USD23 million and EUR300 million:
1. A 40% undivided share in Canal Walk
2. Clearwater Mall.
To Nedbank Limited to secure borrowing facilities totalling R1,5 billion:
1. CapeGate
2. Atterbury Value Mart.
To Stanbic IBTC Bank PLC to secure borrowings totalling USD32,5 million:
Ikeja City Mall
To Investec Asset Management Proprietary Limited to secure borrowings totalling USD24,3 million:
Ikeja City Mall
Encumbered properties total R22,1 billion (2016: R24,4 billion).