FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
167
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
11.
ACQUISITION OF SUBSIDIARIES (CONT’D)
(b)
Acquisition of Excellence Prosperity Japan KK (cont’d)
Fair value
recognised on
acquisition
$’000
Consideration transferred for the acquisition of EPJKK
Cash paid (funded by proceeds of IPO)
11,982
Effect of the acquisition of EPJKK on cash flows
Total consideration
11,982
Less: Cash and cash equivalents of subsidiary acquired
(208)
Net cash outflow on acquisition
11,774
Transaction costs
Transaction costs related to the acquisition of the businesses have been recognised in the “Non-
capitalisable expenses in relation to IPO” line item in the FH-REIT Group’s and the Stapled Group’s
Statements of Total Return.
12.
INVESTMENT PROPERTIES
FHT FH-REIT Group
FH-BT
30 Sep 2015 30 Sep 2015 30 Sep 2015
$’000
$’000
$’000
Statements of Financial Position:
At 20 Jun 2014 (Date of constitution)
–
–
–
Acquisition of investment properties
1,758,874
1,758,874
–
Acquisition of subsidiary (Note 11(a))
137,204
137,204
–
Subsequent capital expenditure incurred on investment
properties
15,317
15,317
–
Net change in fair value of investment properties
116,671
116,671
–
Translation differences
(67,673)
(67,673)
–
At 30 Sep 2015
1,960,393
1,960,393
–
Statements of Total Return:
Gross rental revenue from investment properties:
– Minimum lease payments
59,212
59,212
–
– Variable rent based on lessees’ gross operating profits
68,923
68,923
–
– Effect of recognising rental income on a straight-line
basis over lease term
610
610
–
128,745
128,745
–
Net change in fair value of investment properties
116,671
116,671
–
Total property operating expenses, recognised in the Statements of Total Return, represent direct operating
expenses arising from investment properties that generated rental income.
