Page 57 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
11. COMMITMENTS AND CONTINGENCIES (CONTINUED) 11.2 Contingent liabilities
FINANCIAL
GMT has no material contingent liabilities.
11.3 Lease commitments payable
STATEMENTS
Lease payments for ground leases that the Trust has contracted to pay in future years are set out below. These leases cannot be cancelled by the Trust.
continued
For the year ended 31 March 2017
$ million
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 and later
2017 2016
3.2 3.2 3.3 3.2 3.3 3.3 3.3 3.3 3.4 3.4
23.1 21.2
Total 39.6 37.6
12. OTHER INVESTMENTS
GMT holds a $12.0 million investment in units in the Millennium Centre Proportional Ownership scheme (“MCPO”) managed by Oyster Management Limited (“Oyster”), a wholly owned subsidiary of Oyster Property Group Limited. This investment was made as part of the agreement by GMT to sell the Millennium Centre to MCPO, with settlement of the sale of properties and GMT’s investment in MCPO taking place on 15 March 2017.
The units owned by GMT rank equally with all other units in the syndicate and earn GMT a minimum pre-tax cash return of 8% per annum. GMT has agreed that it will not dispose of any units for a maximum period of 12 months from settlement date (this period may be shorter if certain conditions are met), however Oyster has the ability to repurchase the units from GMT at their original issue price during this time. In the event that Oyster has not repurchased GMT’s units in MCPO, GMT has the right to put the units back to Oyster two years after settlement date, at the original subscription price. Oyster’s obligation is guaranteed by Oyster Property Group Limited.
ACCOUNTING POLICIES
Other investments are considered an available for sale nancial asset. They are initially and subsequently recognised at fair value.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
55 NOTES TO THE FINANCIAL STATEMENTS