NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 39 COMMITMENTS (continued) Capital commitments As at the reporting date, the Stapled Group had the following capital commitments: CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2023 2022 2023 2022 2023 2022 $’000 $’000 $’000 $’000 $’000 $’000 Capital expenditure commitments: – contracted but not provided for 117,955 146,102 14,763 2,431 132,718 148,533 – acquisition of investment properties(1) 67,092 131,388 – – 67,092 131,388 (1) As at 31 December 2023, commitment for acquisition of investment properties relate to the acquisition of the trust beneficial interest in a turnkey rental housing property in Fukuoka from Sekisui House, Ltd. and Fukuoka Shoji, Co., Ltd., unrelated third parties for the purchase consideration of JPY8.0 billion (equivalent to $74.5 million) derived based on the independent valuation of the property of JPY8.3 billion (equivalent to $77.4 million) using the discounted cash flow method (completed on 24 January 2024). As at 31 December 2022, commitment for acquisition of investment properties relate to the total purchase consideration of JPY13.9 billion (equivalent to $141.5 million) for the acquisition of the trust beneficial interest in (a) one turnkey rental housing property in Osaka for the purchase consideration of JPY1.9 billion (equivalent to $18.9 million) (completed in the second quarter of 2023); (b) one turnkey rental housing property in Fukuoka for the purchase consideration of JPY4.0 billion (equivalent to $40.9 million) (completed in the second quarter of 2023); and (c) one turnkey rental housing property in Fukuoka for the purchase consideration of JPY8.0 billion (equivalent to $81.7 million) (completed on 24 January 2024). For the property, Standard at Columbia, there is a 10% stake held by an unrelated third party. There is a call option for the remaining 10% stake exercisable by CLAS after the property achieves certain performance conditions within 24 months after completion of the development. There is a put option for the remaining 10% stake exercisable by the third party when CLAS does not exercise its call option by the end of 24 months after completion of the development. This commitment has not been recognised in the Stapled Group’s consolidated financial statements until the stabilisation conditions are fulfilled. Overview Sustainability & Governance ANNUAL REPORT 2023 315 Leadership Portfolio & Performance Financial Statements and Other Information
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