/ 1 5 1
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
23.
Commitments (Cont’d)
(b)
Operating lease commitments
CIT is required to pay annual land rent to Jurong Town Corporation (“JTC”), Housing & Development Board
(“HDB”) and Ascendas Land (Singapore) Pte Ltd (“Ascendas”) for 30 properties (2014: 27 properties).
The annual land rent is based on market rent for the relevant year and any increase in annual land rent
from year to year shall not exceed 5.5% of the annual land rent for the respective properties for the
immediate preceding year. The land rent paid based on prevailing rental rates during the financial year
was $7.4 million for 30 properties (2014: $5.6 million for 27 properties).
As at 31 December 2015 and 31 December 2014, CIT had the following operating lease commitments
based on the underlying land leases which range from 27 to 99 years.
Group
Gross
amount
Borne by
tenants
Net
amount
Within
1 year
Within
1 to 5 years
More than
5 years
$’000
$’000
$’000
$’000
$’000
$’000
2015
Land rents
– JTC
357,295 (147,579)
209,716
5,995
22,172 181,549
– HDB
90,323
–
90,323
2,411
9,644
78,268
– Ascendas
21,111
–
21,111
607
2,427
18,077
468,729 (147,579)
321,150
9,013
34,243 277,894
2014
Land rents
– JTC
358,218 (184,320)
173,898
4,898
24,488 144,512
– HDB
93,962
(28,894)
65,068
1,677
8,383
55,008
– Ascendas
20,139
–
20,139
563
2,813
16,763
472,319 (213,214)
259,105
7,138
35,684 216,283
Trust
2015
Land rents
– JTC
324,175 (137,774)
186,401
5,995
22,172 158,234
– HDB
90,323
–
90,323
2,411
9,644
78,268
– Ascendas
21,111
–
21,111
607
2,427
18,077
435,609 (137,774)
297,835
9,013
34,243 254,579
2014
Land rents
– JTC
358,218 (184,320)
173,898
4,898
24,488 144,512
– HDB
93,962
(28,894)
65,068
1,677
8,383
55,008
– Ascendas
20,139
–
20,139
563
2,813
16,763
472,319 (213,214)
259,105
7,138
35,684 216,283
(c)
Capital commitments
As at the reporting date, the Group had $2.0million (2014: $7.5million) of capital expenditure commitments
relating to asset enhancement initiatives and capital expenditure for investment properties that had been
authorised and contracted for but not provided in the consolidated financial statements. These capital
projects are targeted to be completed in 2016.
