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FINANCIALS
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6.
Interests in subsidiaries
Trust
2017
$’000
2016
$’000
Equity investments at cost
491,391
509,444
Advances to subsidiaries
216,461
232,065
707,852
741,509
Less: allowance for impairment loss
(99,000)
(90,000)
608,852
651,509
Advances to subsidiaries are unsecured. The advances form part of the Trust’s interests in subsidiaries as settlement of
these amounts is neither planned nor likely to occur in the foreseeable future, and are stated at cost less impairment loss.
The Manager has reassessed for impairment by comparing the recoverable amount of the Trust’s interests in subsidiaries
against the carrying amount of the Trust’s investment in subsidiaries. The recoverable amount was estimated based on
the fair value of the subsidiaries’ net assets as at reporting date, which is classified in Level 3 of the fair value hierarchy.
As the recoverable amount was lower than the net carrying amount of the Trust’s interest in these subsidiaries, an
impairment loss of $9.0 million (2016: $23.0 million) was recognised for the year ended 30 June 2017, mainly in line with
the drop in valuation of the China Property as at 30 June 2017.
The movement in the allowance for impairment loss in respect of interests in subsidiaries during the year was as follows:
Trust
2017
$’000
2016
$’000
At 1 July
(90,000)
(67,000)
Impairment loss recognised
(9,000)
(23,000)
At 30 June
(99,000)
(90,000)
Details of the subsidiaries are as follows:
Effective interest
Name of subsidiary
Country of incorporation
2017
%
2016
%
Starhill Global REIT Japan SPC One Pte Ltd
(1)
Singapore
100
100
Starhill Global REIT Japan SPC Two Pte Ltd
(1)
Singapore
100
100
Starhill Global REIT MTN Pte Ltd
(1)
Singapore
100
100
SG REIT (M) Pte Ltd
(1)
Singapore
100
100
SG REIT (WA) Pte Ltd
(1)
Singapore
100
100
Starhill Global REIT One TMK
(2)
Japan
100
100
Starhill Global ML K.K.
(3)
Japan
100
100
Top Sure Investment Limited
(4)
Hong Kong
100
100
Renhe Spring Department Store Co., Ltd
(2)
China
100
100
SG REIT (WA) Trust
(2)
Australia
100
100
SG REIT (WA) Sub-Trust1
(2)
Australia
100
100
SG REIT (SA) Sub-Trust2
(2)
Australia
100
100
Ara Bintang Berhad
(2)
Malaysia
100
100
(1)
Audited by KPMG LLP
(2)
Audited by other member firms of KPMG International
(3)
Not required to be audited by the laws of the country of incorporation
(4)
Audited by other auditors