Notes to the Financial Statements Year ended 31 December 2024 14 ASSETS AND LIABILITIES HELD FOR SALE (continued) (a) On 22 October 2024, the CapitaLand Ascott REIT Group entered into a sale and purchase agreement with Tianjin Yuchuang Consulting Co. Ltd, an unrelated third party, to divest its wholly-owned subsidiary, Tianjin Consco Property Development Co., Ltd for the consideration of RMB420 million ($77.4 million). The Stapled Group owns a 100% interest in Somerset Olympic Tower Tianjn, which has a gross floor area of about 32,900 square metres. The consideration is approximately 50% above the property’s carrying value as at 31 December 2023 which was appraised based on the discounted cash flow method. The divestment was anticipated to be completed within 12 months and accordingly, all assets and liabilities held by Tianjin Consco Property Development Co., Ltd were reclassified to assets held for sale and liabilities held for sale respectively. As at 31 December 2024, Somerset Olympic Tower Tianjin, with an aggregate carrying value of $51,316,000, was pledged as security for banking facilities granted to Tianjin Consco Property Development Co., Ltd. (b) In 2021, pursuant to the planned divestment of nine strata units in Somerset Grand Citra Jakarta (a serviced residence), the investment property pertaining to these nine units have been reclassified to assets held for sale. As at 31 December 2024, there are six remaining strata units (2023: six strata units). The Stapled Group owns a 100% interest in all six strata units, which have a combined gross floor area of about 490 square metres. (c) On 16 December 2023, the CapitaLand Ascott REIT Group entered into a sale and purchase agreement with TMK 7C, an unrelated third party, to divest Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West for a total consideration of JPY10.7 billion ($99.8 million). The combined consideration of JPY10.7 billion ($99.8 million) is approximately 15% above the properties’ carrying value as at 31 December 2022 which was appraised based on the discounted cash flow method. Divestment of the three properties was completed on 14 March 2024. (d) Pursuant to the planned divestment of Citadines Mount Sophia Property Singapore, the investment property and property, plant and equipment relating to Citadines Mount Sophia Property Singapore was reclassified to assets held for sale as at 31 December 2023. On 31 January 2024, the CapitaLand Ascott REIT Group entered into a sale and purchase agreement with Hillside (Singapore) Pte. Ltd., an unrelated third party. The consideration of $148.0 million is approximately 19% above the carrying value as at 31 December 2023 of $124.0 million which was appraised based on the discounted cash flow method. The divestment was completed on 1 March 2024. (e) On 3 November 2023, the CapitaLand Ascott BT Group entered into two sale and purchase agreements with Silversea Investment Pty Ltd and Oceanfront Capital Pty Ltd, unrelated third parties, to divest Courtyard by Marriott Sydney-North Ryde for the consideration of AUD 55.2 million ($48.4 million) and two sale and purchase agreements with Silversea Investment Pty Ltd and Silverworld Business Pty Ltd, unrelated third parties, to divest Novotel Sydney Parramatta for the consideration of AUD53.8 million ($47.2 million). The combined consideration of AUD109.0 million ($95.6 million) is approximately 5% above the properties’ carrying value as at 27 October 2023 which was appraised based on the discounted cash flow method. Divestment of Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Parramatta was completed on 31 January 2024 and 2 September 2024 respectively. Fair value hierarchy On 31 December 2024, the Stapled Group’s assets and liabilities held for sale were valued as such: • Investment properties: based on independent valuation conducted by HVS using the discounted cash flow method. • Non-derivative financial liabilities: present value of future principal and interest cash flows. • Other assets and liabilities: held at carrying amount as they were assumed to approximate their fair value less estimated costs to sell because of their short period to maturity. On 31 December 2023, the Stapled Group’s assets held for sale were valued based on independent valuations conducted by HVS using the discounted cash flow method, except for the two properties in Australia which were valued by Colliers using the discounted cash flow method. The fair value measurement for assets held for sale for the Stapled Group have been categorised as level 3 fair values. 199 Annual Report 2024
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