Growthpoint Interactive Half Year Report 2019

Notes to the Financial Statements (cont.) 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-18 30-Jun-18 $’000 $’000 $’000 Victoria 120 Northcorp Boulevard Broadmeadows VIC 31-Dec-18 73,000 73,000 77,400 1500 Ferntree Gully Road & 8 Henderson Road Knoxfield VIC 30-Jun-18 44,000 45,000 44,000 9-11 Drake Boulevard Altona VIC 31-Dec-18 35,000 35,000 34,500 40 Annandale Road Melbourne Airport VIC 30-Jun-18 34,800 34,000 34,800 Lots 2,3 & 4, 34-54 Raglan St Preston VIC 31-Dec-18 29,000 29,000 24,500 120-132 Atlantic Drive Keysborough VIC 31-Dec-18 26,900 26,900 25,250 130 Sharps Road Melbourne Airport VIC 31-Dec-18 25,500 25,500 25,100 120 Link Road Melbourne Airport VIC 31-Dec-18 17,800 17,800 17,000 20 Southern Court Keysborough VIC 30-Jun-18 15,800 15,800 15,800 6 Kingston Park Court Knoxfield VIC 30-Jun-18 12,300 12,400 12,300 3 Millennium Court Knoxfield VIC 31-Dec-18 12,300 12,300 11,500 31 Garden Street Kilsyth VIC 31-Dec-18 12,150 12,150 11,200 60 Annandale Road Melbourne Airport VIC 30-Jun-18 11,700 11,700 11,700 101-111 South Centre Road Melbourne Airport VIC 31-Dec-18 9,000 9,000 8,800 19 Southern Court Keysborough VIC 30-Jun-18 8,100 8,200 8,100 75 Annandale Road Melbourne Airport VIC 30-Jun-18 7,650 7,300 7,650 Queensland 70 Distribution Street Larapinta QLD 31-Dec-18 228,000 228,000 220,000 13 Business Street Yatala QLD 31-Dec-18 13,100 13,100 13,750 5 Viola Place Brisbane Airport QLD 31-Dec-18 9,900 9,900 8,700 3 Viola Place Brisbane Airport QLD 31-Dec-18 2,500 2,500 2,450 30 Growthpoint Properties Australia | 2019 Half Year Report