/ 1 5 0
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
22.
Acquisition of subsidiary (Cont’d)
Identifiable net assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date
of acquisition.
Note
$’000
Investment property
(a)
4
38,000
Other assets
1,342
Interest-bearing borrowings (net of transaction costs)
(11,653)
Other liabilities
(272)
Total identifiable net assets at fair value
27,417
(a)
In determining the fair value of the investment property acquired in a business combination, an independent valuer had been engaged by
the Group to undertake a valuation of the property at the date of the acquisition. The investment property was stated at fair value of $38.0
million based on a valuation performed by Knight Frank Pte Ltd (“Knight Frank”), an independent professional valuer as at 31 December
2014. Knight Frank confirmed that there was no significant change to the fair value of $38.0 million for the investment property as at the
acquisition date.
In determining the fair value, the valuer has used valuation methods which involve certain estimates. The Manager has exercised its judgment
and is satisfied that the valuation methods and estimates are reflective of the current market conditions.
Knight Frank has considered valuation techniques such as capitalisation approach and discounted cash flow analysis in arriving at the open
market value as at the reporting date. The key assumptions used to determine the fair value of the investment property includes market-
corroborated capitalisation yield, terminal yield, discount rate and average growth rate.
Consideration transferred
$’000
Total identifiable net assets at fair value
27,417
Less: Fair value of equity interest in subsidiary held by the Group
immediately before the acquisition
(16,450)
Total consideration transferred
10,967
Less: Cash and cash equivalents of subsidiary acquired
(385)
Net cash outflow on acquisition of subsidiary
10,582
Acquisition-related costs
The Group incurred acquisition-related costs of approximately $0.2 million on legal fees and due diligence costs.
These costs have been included in trust expenses.
23.
Commitments
(a)
Lease commitments
CIT’s investment properties are leased. Non-cancellable operating lease rentals are receivable as follows:
Group
Trust
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Receivable:
– Within 1 year
102,378
98,154 100,538
98,154
– After 1 year but within 5 years
209,916 226,960 200,427 226,960
– After 5 years
166,887
88,786 119,098
88,786
479,181 413,900 420,063 413,900
