Page 37 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE FINANCIAL
1. INVESTMENTPROPERTY(CONTINUED) 1.7 Developments (continued)
Valuation 2016 2015
At fair value
M20 Business Park, Wiri
$ million
Transfers Net in expenditure
Fair value movement
1.3
10.7 0.2 - - 1.7 -
13.9
Transfers Valuation out 2016
- 21.0
(55.2) 29.6 (3.9) 7.5 - 4.4 - 1.3 (22.3) - (1.3) -
(82.7) 63.8
Valuer
Lettable area sqm
Market cap rate
WALT Occupancy years
STATEMENTS
- 3.9 15.8
10.7 24.3 39.1 - 6.5 4.7 - 1.2 3.2 - 1.3 -
6.8 - 13.8 - - 1.3
17.5 37.2 77.9
CBRE 11,324
6.0% 100% 10.0
continued
For the year ended 31 March 2017
At cost
Highbrook Business Park, East Tamaki Savill Link, Otahuhu
M20 Business Park, Wiri
The Gate Industry Park, Penrose Greenlane Office, Greenlane
Connect Industrial Estate, Penrose
Total developments
At cost
At cost
At cost
At cost -- --
55,660
- - - - - -
54% 8.6 100% 10.0 0% - 0% - - - - -
31,066 5,040 3,300 4,930
ACCOUNTING POLICIES
Developments are properties that are being constructed for future use as stabilised property. They are classi ed as developments and initially recorded at cost of acquisition, construction or development. All costs directly associated with the purchase and construction of developments and all subsequent capital expenditure for developments are capitalised.
Holding costs are capitalised if they are directly attributable to the acquisition or development of a property. The most signi cant component of holding costs is borrowing costs. Capitalisation of borrowing costs commences when the activities to prepare the property for its intended use are in progress and expenditures and borrowing costs are being incurred. The amount capitalised is determined by applying the weighted average cost of debt to borrowings attributed to the development. Capitalisation of borrowing costs will continue until the development of the property is completed.
If the fair value of a development can be reliably determined during the course of its construction, then the development will be recorded at fair value in the same manner as stabilised properties.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
35 NOTES TO THE FINANCIAL STATEMENTS