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Notes to the Consolidated Financial Statements

31st March 2015

15 INVESTMENT PROPERTIES

Group
2015 2014
HK$’000 HK$’000

At fair value
Beginning of the year 305,210 289,050
Fair value gain (Note 6) 10,460 16,160

End of the year 315,670 305,210

The Group’s interests in investment properties at their net book values are analysed as follows:

Group
2015 2014
HK$’000 HK$’000

In Hong Kong, held on:
Leases of over 50 years 236,310 229,290
Leases of between 10 and 50 years 79,360 75,920
315,670 305,210

Rental income derived from the investment properties amounted to approximately HK$8,489,000 (2014:
HK$7,862,000) during the year.

As at 31st March 2015 and 2014, no bank borrowing was secured on investment properties (Note 26).

Valuation basis

The Group measures its investment properties at fair value. The fair value of the Group’s investment
properties at 31st March 2015 has been determined on the basis of valuation carried out by an
independent qualified valuer, LCH (Asia-Pacific) Surveyors Limited (the “Valuer”) (2014: Same). The
valuation, which conforms to the valuation standards issued by Hong Kong Institute of Surveyors
(“HKIS”), was arrived at by reference to the current rental income and estimate market price, allowing for
reversionary potential of the investment properties.

The Group reviews the valuation performed by the Valuer for financial reporting purposes. Discussions of
valuation processes and results are held between management and the Valuer at least once every year,
which is in line with the Group’s annual reporting date.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 73