Annual Report 2025 169 4 Investment Properties CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 At 1 January 6,556,284 6,498,182 419,331 424,990 6,561,673 6,501,017 Acquisition of investment properties (Note 37) 214,915 337,296 – – 214,915 337,296 Capital expenditure 21,692 12,546 4,804 1,010 26,405 13,556 Net change in fair value of investment properties 79,271 23,104 35,319 24,161 135,720 50,452 Investment properties disposed (109,494) (109,248) – – (109,494) (109,248) Investment properties written off (300) (441) – – (102) (37) Transfer from/(to) assets held for sale (Note 14) 438 (61,873) – – 438 (61,873) Transfer from property, plant and equipment (Note 5) 15,070 784 – – 15,070 784 Translation differences (53,357) (144,066) (21,708) (30,830) (73,260) (170,274) At 31 December 6,724,519 6,556,284 437,746 419,331 6,771,365 6,561,673 The Stapled Group assessed the classification of its investment properties as investment properties or property, plant and equipment based on its business model, taking into consideration the quantum of other income derived from ancillary services rendered relative to total revenue and employment of external property managers to operate the investment properties, amongst other factors. From 1 October 2022, The Robertson House by The Crest Collection, is leased by CapitaLand Ascott REIT’s subsidiary to CapitaLand Ascott BT’s subsidiary under a master lease arrangement. CapitaLand Ascott BT’s subsidiary has separately entered into a hotel management agreement with Ascott International Management Pte Ltd for the management of the property as well as the rebranding and renovation of the property. The hotel management agreement is effective from 1 October 2022 and will continue for a period of 20 years from completion of rebranding and renovation. The property is classified as property, plant and equipment instead of investment property in the Stapled Group’s financial statements as it will be operated as a full facility hotel and the proportion of ancillary income is deemed significant. The investment properties of CapitaLand Ascott BT Group included a right-of-use asset relating to the operating lease for Sotetsu Grand Fresa Tokyo-Bay Ariake (“Ariake Hotel”) on adoption of SFRS(I) 16/ FRS 116. Ascendas Ariake Godo Kaisha (“AAGK”), a subsidiary of CapitaLand Ascott BT, leases Ariake Hotel from Ascendas Hospitality Tokutei Mokuteki Kaisha, a subsidiary of CapitaLand Ascott REIT. SFRS(I) 16/ FRS 116 requires AAGK to recognise a right-of-use asset and lease liability relating to this operating lease. There is no impact for the Stapled Group as the intra-group transaction is eliminated upon consolidation. Certain investment properties of the Stapled Group with an aggregate carrying value of $2,369,652,000 (2024: $2,203,545,000) are pledged as securities to banks for banking facilities granted to certain subsidiaries (Note 16).
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