85
waikato-tainui
annual report 2014
1 9 . i n v e s t men t p r o p e r t i e s
Consolidated
Parent
Notes
2014
2013
2014
2013
$'000
$'000
$'000
$'000
Balance at beginning of year
545,288
504,437
4,177
4,305
Development
11,709
16,785
-
-
Net gain/(loss) from fair value adjustment
8
12,706
21,828
551
(128)
Acquisition from subsidiary
-
-
4,380
-
Transfer (to)/from property, plant and equipment
18 (1,675)
4,862
-
-
Disposals
(3,114)
(2,624)
-
-
Balance at end of year
564,914
545,288
9,108
4,177
Valuation basis of investment properties
Investment property valuations were completed as follows:
D.J. Saunders from Telfer Young (Waikato) Limited valued properties at fair value of $72m and Parent $5.8m on 31 March 2014
(31 March 2013: $69m and Parent: $0.9m) using a mixture of market evidence of transaction prices for similar properties, direct
comparison, capitalisation and discounted cash flow approaches.
T. Arnott from CB Richard Ellis Limited valued properties at fair value of $298m on 31 March 2014 (31 March 2013: $286m)
using a mixture of market evidence of transaction prices for similar properties, capitalisation and discounted cash flow
approaches.
K. Sweetman from Colliers International NZ Limited valued properties at fair value of $80m on 31 March 2014 (31 March 2013:
$75m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flows approaches.
P.A. Curnow from Curnow Tizard Limited valued properties at fair value of $112m and Parent $3.3m on 31 March 2014 (31
March 2013: $112m and Parent: $3.3m) using a mixture of market evidence of transaction prices for similar properties, direct
comparison, capitalisation and discounted cash flow approaches.
All valuers are independent registered valuers not related to the Parent or Group. All valuers hold recognised and relevant
professional qualifications and have recent experience in the locations and categories of the investment property they
have valued.
Tainui Group Holdings Limited also incurred work in progress, which is held at cost, as at 31 March 2014 of $3m (2013: $3m) in
relation to the property located at The Base.
$9.3m). The total value of other properties valued by Curnow Tizard Limited at 31 March 2014 is $4.7m (2013: $4.6m). The
carrying amount that would have been reported for other properties under the historical cost method is $4.5m (2013: $4.5m).
All valuers are independent registered valuers not related to the Parent or Group. All valuers hold recognised and relevant professional
qualifications and have recent experience in the locations and categories of farm and other properties they have valued.
Hotel assets pledged as security
The ASB Bank and the Bank of New Zealand have security agreements over the assets owned by the Novotel Auckland Airport
hotel and the Hamilton Riverview Hotel Limited respectively, refer to note 23.
