Annual Report 2019

ANNUAL REPORT 2019 215 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2019 15. INVESTMENT PROPERTIES (continued) During the year ended 31 March 2018, upon the Group assuming the car park business in UK from the third party operator, the car park was reclassified from investment properties to property, plant and equipment at their fair value on the date of transfer. The fair value of the completed investment properties in Hong Kong and outside Hong Kong at 31 March 2019, 31 March 2018 and at the date of transfer have been arrived at on the basis of a valuation carried out on those date by the following independent firm of qualified professional valuers not connected to the Group: Location of the investment properties Independent qualified professional valuers Qualification Australia CBRE Valuations Pty Limited Colliers International (WA) Pty Ltd Member of the Australian Property Institute HK/PRC Cushman & Wakefield Limited Member of the Hong Kong Institute of Surveyors Singapore Savills Valuation and Professional Services (S) Pte Ltd Member of the Singapore Institute of Surveyors and Valuers UK Chestertons Global Limited Member of Royal Institution of Chartered Surveyors In determining the fair value of the relevant properties, the Group engages independent qualified professional valuers (“Valuers”) to perform the valuation. The management of the Company works closely with the valuers to establish the appropriate valuation techniques and inputs to the model. The management of the Company report the findings of the valuation to the board of directors of the Company periodically to explain the cause of fluctuations in the fair value of the investment properties. The valuation of the completed investment properties, which falls under level 3 of the fair value hierarchy, was arrived at by reference to market unit rates which represent market evidence of transaction prices for similar properties at similar locations or by capitalisation of future rental which is estimated by reference to comparable rental as available in the relevant markets. In the valuation, the market rentals of all lettable units of the properties are made reference to the rentals achieved by the Group in the lettable units as well as those of similar properties in the neighbourhood. The capitalisation rate adopted is by reference to the yield rates observed by the valuer for similar properties in the locality and adjusted for the valuer’s knowledge of factors specific to the respective properties.