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Notes to the Consolidated Financial Statements

31st March 2017

15 INVESTMENT PROPERTIES

2017 2016
HK$’000 HK$’000

Beginning of the year 79,420 315,670
Fair value gain (Note 6) 11,068 60
Disposal (Note 29) – (236,310)

End of the year 90,488 79,420

Rental income derived from the investment properties amounted to approximately HK$2,979,000 (2016:
HK$8,373,000) during the year.

Valuation process of the Group

The Group measures its investment property at fair value. The fair value of the Group’s investment
property at 31st March 2017 and 2016 has been determined on the basis of valuation carried out by an
independent qualified valuer, LCH (Asia-Pacific) Surveyors Limited (the “Valuer”). The valuation, which
conforms to the valuation standards issued by Hong Kong Institute of Surveyors (“HKIS”) was arrived
at by reference to the current and forecast rental income, allowing for reversionary potential of the
investment property.

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.

88 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017