Ascott Residence Trust - Annual Report 2014 - page 203

33 FAIR VALUE OF ASSETS AND LIABILITIES
(continued)
(c) Level 3 fair value measurements
(continued)
(ii) Valuation techniques and significant unobservable inputs
(continued)
Type
Valuation technique
Significant
unobservable inputs
Inter-relationship
between key
unobservable inputs
and fair value
measurement
Forward exchange
contracts and
interest rate
swap
Market comparison
technique: The fair
values are based on
broker quotes. Similar
contracts are traded in
an active market and the
quotes reflect the actual
transactions in similar
instruments.
Not applicable
Not applicable
Financial instruments not measured at fair value for which fair values are
disclosed
Type
Valuation technique
Significant unobservable
inputs
Medium term notes
Discounted cashflows
Not applicable
Sensitivity analysis for key unobservable inputs
The significant unobservable inputs used in the fair value measurement of the
Group’s serviced residence properties and assets held for sale are discount rate,
terminal capitalisation rate and capitalisation rate. Significant decreases in the
discount rate, terminal capitalisation rate and capitalisation rate in isolation would
result in a significantly higher fair value measurement. Conversely, a significant
increase would result in a significantly lower fair value measurement.
34 ACQUISITION OF SERVICED RESIDENCE PROPERTIES, NET OF CASH MOVEMENTS
Acquisition of serviced residence properties and subsidiaries
On 20 March 2014, the Group acquired a 100% interest in Island City Pte. Ltd. from Ascott
Investment Holdings Ltd and ArcResidential Japan Investments Limited. Island City Pte. Ltd.
owns the trust beneficial interest in respect of the property Infini Garden, through its indirectly
wholly-owned subsidiary, Infini Garden TMK.
On 20 June 2014, the Group acquired a 100% interest in Wangze (Dalian) Enterprise Co.,
Limited, which owns the property Somerset Grand Central Dalian, from a third party.
On 18 August 2014, the Group acquired the following:
– a 100% interest in Somerset Ampang (Malaysia) Sdn. Bhd., which owns the property
Somerset Ampang Kuala Lumpur, from Ascott Investment Holdings Ltd.
Pursuing Growth | 201
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