Growthpoint Interactive Half Year Report 2018

Growthpoint Properties Australia 2018 Half Year Report 35 Portfolio Review Financial Report Additional Information Financial Management Business Overview 2.2 Investment properties Determination of fair value An external, independent valuation company, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued generally, typically values all of the Group’s investment properties each financial year. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably and willingly. In the absence of current prices in an active market, the valuations are prepared by considering the net present value of the estimated cash flows expected from ownership of the property, a discounted cash flow valuation. A discount rate or target internal rate of return that reflects the specific risks inherent in the net cash flows is then applied to the net annual cash flows to arrive at the property valuation. Valuations reflect, where appropriate, the type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance responsibilities between the Group and the lessee, and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices and, when appropriate, counter-notices, have been served validly and within the appropriate time. Investment Property Values Latest External Valuation Consolidated Book Value Industrial Properties Date Valuation 31-Dec-17 30-Jun-17 $’000 $’000 $’000 Victoria 120 Northcorp Boulevard Broadmeadows VIC 30-Jun-17 77,700 78,500 77,700 522-550 Wellington Road (i) Mulgrave VIC - - - 65,900 1500 Ferntree Gully Road & 8 Henderson Road Knoxfield VIC 30-Jun-17 42,300 42,300 42,300 40 Annandale Road Melbourne Airport VIC 30-Jun-17 33,000 34,000 33,000 9-11 Drake Boulevard Altona VIC 31-Dec-17 33,500 33,500 31,350 130 Sharps Road Melbourne Airport VIC 31-Dec-17 25,300 25,300 24,500 120-132 Atlantic Drive Keysborough VIC 31-Dec-17 25,000 25,000 24,100 Lots 2-4, 44-54 Raglan Street Preston VIC 31-Dec-17 24,300 24,300 23,100 120 Link Road Melbourne Airport VIC 31-Dec-17 17,000 17,000 15,500 20 Southern Court Keysborough VIC 30-Jun-17 15,250 15,800 15,250 60 Annandale Road Melbourne Airport VIC 30-Jun-17 13,000 13,000 13,000 6 Kingston Park Court Knoxfield VIC 30-Jun-17 12,150 12,150 12,150 3 Millennium Court Knoxfield VIC 31-Dec-17 11,500 11,500 11,000 31 Garden Street Kilsyth VIC 31-Dec-17 10,250 10,250 10,100 101-111 South Centre Road Melbourne Airport VIC 31-Dec-17 8,300 8,300 7,850 19 Southern Court Keysborough VIC 30-Jun-17 8,100 8,250 8,100 75 Annandale Road Melbourne Airport VIC 30-Jun-17 7,150 7,150 7,150 Queensland 70 Distribution Street Larapinta QLD 31-Dec-17 215,000 215,000 205,000 13 Business Street Yatala QLD 31-Dec-17 15,000 15,000 15,000 5 Viola Place Brisbane Airport QLD 31-Dec-17 8,700 8,700 8,000 3 Viola Place Brisbane Airport QLD 31-Dec-17 2,450 2,450 2,100 (i) This property was sold in December 2017