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117
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
6 Property, Plant and Equipment
(Continued)
Building includes the following amounts where the Group is a lessee under a finance lease:
RMB’000
2011
2010
Cost — capitalised finance leases
24,524
24,524
Accumulated depreciation
(3,986)
(3,373)
20,538
21,151
The Group leases building under non-cancellable finance lease agreement. The lease term is 40 years.
7 Investment Properties
RMB’000
2011
2010
At beginning of the year
7,223,208
2,485,200
Additions
657,319
2,179,053
Transfer from completed properties held for sale
—
106,553
Fair value gain (included in “other gains, net”)
677,136
2,452,402
At end of the year
8,557,663
7,223,208
The investment properties were valued on 31 December 2010 and 2011 at fair value by Jones Lang LaSalle
Corporate Appraisal and Advisory Limited, an independent and professionally qualified valuer.
As at 31 December 2011, investment properties of carrying value of RMB2,918,325,000 (2010: RMB2,463,980,000)
were pledged as collateral for the Group’s borrowings (note 20).
The Group’s interests in investment properties at their carrying amounts are analysed as follows:
RMB’000
2011
2010
In the PRC, held on:
Leases of 10-50 years
6,710,645
5,441,976
Leases of over 50 years
1,847,018
1,781,232
8,557,663
7,223,208
The following amounts have been recongised in the consolidated statement of comprehensive income:
RMB’000
2011
2010
Rental income
30,777
34,426
Direct operating expenses attributable to investment properties
that generate rental income
(4,005)
(3,465)
Net rental income (note 25)
26,772
30,961