Frasers Property Limited Annual Report 2014

FY2014 Annual Report · Frasers Property Limited
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A NEW LEVEL OF
GROWTH

ANNUAL REPORT 2014

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FRASERS CENTRE PO INT LIMITE D
C o m p a n y   R e g i s t r a t i o n   N u m b e r :   1 9 6 3 0 0 4 4 0 G

438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958

Phone:  +65 6276 4882
+65 6276 6328
Fax: 

fraserscen trepo int.com

 
 
 
 
 
 
 
 
C O N T E N T S

0 2

O U R   V I S I O N ,   M I S S I O N 
A N D   K E Y   S T R A T E G I E S

0 4

F C L   G R O U P   A T   A   G L A N C E

0 6

G L O B A L   P R E S E N C E

0 8

M I L E S T O N E S

1 0

C O R P O R A T E   I N F O R M A T I O N

1 1

G R O U P   S T R U C T U R E

1 2

F I N A N C I A L   H I G H L I G H T S

1 4

C H A I R M A N ’ S   S T A T E M E N T

2 0

B O A R D   O F   D I R E C T O R S

2 6

G R O U P   M A N A G E M E N T

2 8

G R O U P   C E O ’ S   B U S I N E S S   R E V I E W 
•   D E V E L O P M E N T   P R O P E R T I E S 
•   C O M M E R C I A L   P R O P E R T I E S 
•   H O S P I T A L I T Y
•   A U S T R A L A N D

5 8

I N V E S T O R   R E L A T I O N S

6 0

T R E A S U R Y   H I G H L I G H T S

6 2

C O R P O R A T E   S O C I A L 
R E S P O N S I B I L I T Y

7 4

A W A R D S   &   A C C O L A D E S

7 8

E N T E R P R I S E - W I D E   R I S K 
M A N A G E M E N T

8 1

C O R P O R A T E   G O V E R N A N C E   R E P O R T

9 7

F I N A N C I A L   S T A T E M E N T S

2 3 4

P A R T I C U L A R S   O F   G R O U P 
P R O P E R T I E S

2 5 1

I N T E R E S T E D   P E R S O N S 
T R A N S A C T I O N S

2 5 2

S H A R E H O L D I N G   S T A T I S T I C S

2 5 4

N O T I C E   O F   A N N U A L   G E N E R A L 
M E E T I N G

P R O X Y   F O R M

Central Park, Sydney, Australia

Watertown, Singapore

Capri by Fraser, Changi City, Singapore

All figures in this Annual Report are in Singapore dollars unless otherwise specified.

Frasers Tower, Singapore

FY2013/14 has been a milestone year for Frasers Centrepoint Limited (FCL). 

We made the leap to the big league by being independently listed on the 

Singapore Exchange after having operated as a subsidiary of Fraser and 

Neave, Limited (F&NL) for more than 20 years. This enables us to pursue 

targeted growth initiatives and employ new strategies to further develop our 

brand. Building on the strong foundation that we have established over the 

years, FCL is now in a better position to improve its corporate visibility  

across its business segments – to take our brand further and embark on  

Port Coogee, Western Australia

a new level of growth.

1

O U R   V I S I O N

TO BE OUR STAKEHOLDERS’ 

REAL ESTATE COMPANY OF 

CHOICE

O U R   M I S S I O N

CREATING VALUE 

THROUGH SPACE FOR 

TODAY AND TOMORROW

Waterway Point, Singapore

2

Eastern Creek Business Park, Sydney, Australia

OUR KEY
STRATEGIES

1 

Achieve sustainable earnings growth 

through a significant development 

project pipeline, investment properties 

and fee income

2 

Grow our asset portfolio in a balanced 

manner across geographies and 

property segments to preserve stability 

Hotel InterContinental, Singapore

of earnings

3 

Optimise capital productivity through 

REIT platforms and active asset 

management initiatives

4 

Develop synergies with the TCC Group

Waterfront Gold, Singapore

3

F C L   G R O U P

A T   A   G L A N C E

Frasers Centrepoint Limited is an international real 
estate company with a portfolio that spans residential, 
commercial, hospitality and industrial asset classes. 
We invest in, develop and manage properties in over  
35 cities across Europe, Australia, Asia and the 
Middle-East. Our established focus on our three 
core markets of Singapore, where we are listed and 
have our roots, Australia and China, is driven by the 
strong market fundamentals that characterise these 
territories. Over the years, we have developed an 
intimate knowledge of our core markets and also of our 
secondary markets of the United Kingdom, Vietnam, 
Thailand and Malaysia.

chain. Combined with our financial and operational 
discipline, and the thoughtful execution of our 
strategies, we aim to deliver value to our stakeholders 
and the communities we serve. 

We have a clear vision of the path ahead. Our 
experienced management team, proven expertise in 
multiple asset classes, and sound financials, mean we 
are well equipped to continue growing and creating 
innovative real estate solutions for today and tomorrow. 

TOTAL ASSETS ($’m)

We are bound by a common objective across our diverse 
geographic footprint – to develop real places for real people. 
Places that are inclusive, where young and old alike can 
live, work and play. We are proud of the contribution we 
make to the cities we operate in, from providing homes 
for families and accommodation for travellers, to efficient 
spaces that allow businesses to thrive and malls that serve 
the needs of local communities.

Our diverse portfolio, active management of assets 
across segments and geographies, and ability to strike 
the right balance between development, income-yielding 
assets and optimising capital through our  
Singapore-listed REIT platforms, allow us to generate 
quality earnings throughout the entire real estate value 

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

PROFIT BEFORE INTEREST AND TAXATION ($’m)

16,891

10,445

10,357

9,808

9,567

10,112

9,860

9,127

6,140

5,081

FY2014
689M

71% 

10%

10%

7%

1%

1%

DEVELOPMENT 
PROPERTIES 

INVESTMENT 
PROPERTIES

HOSPITALITY 

REITS

AUSTRALAND1

CORPORATE & 
OTHERS

66% 

11%

12%

10%

–

1%

FY2013
571M

Development 
Properties 
($’m)

Investment 
Properties
($’m)

Hospitality
($’m)

REIT
($’m)

Australand
($’m)

Corporate & 
Others
($’m)

Profit Before Interest and Taxation

FY2014

FY2013

490.8

379.4

68.4

63.0

67.8

69.7

54.4

54.4

6.4

–

1.6

4.6

Group
($’m)

($’000)

689.4

571.1

1  Australand became a member of the Group on 29 August 2014, contributing one month of income in FY2014

4

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
 
RESIDENTIAL

Frasers Centrepoint Homes focuses 
on residential property development 
in Singapore. It has built over  
13,000 homes in Singapore, with 
close to 6,000 homes under 
development (including properties 
under joint-venture projects).

Frasers Property is the 
international arm of the Group.  
It develops residential and 
mixed-use property projects outside 
of Singapore, including in China, 
Australia, New Zealand, Thailand, 
and the United Kingdom. Our key 
overseas markets for property 
development are China and 
Australia.

COMMERCIAL

Frasers Centrepoint Commercial 
manages our shopping malls 
in Singapore under the Frasers 
Centrepoint Malls brand. It 
manages six shopping malls 
in Singapore held by Frasers 
Centrepoint Trust, an entity 
which is listed on the SGX-ST. In 
addition, FCL also has interests 
in and/or manages seven other 
shopping malls in Singapore, and 
one shopping mall each in China 
and Australia.

Frasers Centrepoint Commercial 
also manages office and business 
space properties. It manages five 
commercial and office properties 
in Singapore and Australia held 
by Frasers Commercial Trust, an 
entity which is also listed on the 
SGX-ST. FCL also has interests in 
seven office and business space 
properties located in Singapore, 
China and Vietnam. 

Flamingo Valley, Singapore

AU STR ALAND

Australand is a wholly owned 
subsidiary of Frasers Centrepoint 
Limited. Australand is one of 
Australia’s leading property 
groups, having been involved 
in property development for 
more than 90 years. Its current 
operations are focussed on 
investment in income-producing 
office and industrial properties, 
commercial and industrial 
property development and 
management and residential 
development (including land, 
housing and apartments). 
Australand has offices in Sydney, 
Melbourne, Brisbane and Perth. 
It also maintains a residential 
sales office in Hong Kong. 

Modena by Fraser, Wuhan, China

HOSPITALITY

Frasers Hospitality has interests 
in and/or manages serviced 
residences under the branded 
lifestyle offerings of Fraser 
Suites, Fraser Place, Fraser 
Residence, Modena by Fraser and 
Capri by Fraser, offering more 
than 11,000 apartments and hotel 
rooms in over 35 cities. Based on 
management contracts secured, 
more than 7,700 apartments will 
be added to Frasers Hospitality’s 
portfolio of serviced residences in 
the next three years.

Changi City Point, Singapore

357 Collins Street, Melbourne, Australia

5

G L O B A L

P R E S E N C E

PROFIT BEFORE INTEREST AND TAXATION BREAKDOWN BY GEOGRAPHICAL SEGMENT ($’m)

FY2014
689M

58%

SINGAPORE

87%

21%

AUSTRALIA

12%

EUROPE

6%

1%

2%

CHINA

THAILAND

OTHERS*

1%

3%

5%

1%

3%

FY2013
571M

SINGAPORE

FY2014 ($’000)

AUSTRALIA

FY2014 ($’000)

EUROPE

FY2014 ($’000)

400,673

147,135

87,328

FY2013 ($’000)

499,352

FY2013 ($’000)

4,230

FY2013 ($’000)

18,465

CHINA

FY2014 ($’000)

39,121

FY2013 ($’000)

29,552

THAILAND

FY2014 ($’000)

3,314

FY2013 ($’000)

7,896

OTHERS1

FY2014 ($’000)

11,791

FY2013 ($’000)

11,643

1  Include New Zealand, Malaysia, Indonesia, Philippines & Vietnam

6

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
 
 
 
 
 
• RESIDENTIAL

Australia
China
Malaysia
New Zealand
Singapore
Thailand
United Kingdom

• COMMERCIAL

Australia
China
Malaysia
Singapore
Vietnam

• INDUSTRIAL

Australia

• HOSPITALITY

Australia
Bahrain
China
France
Germany
Hungary
India
Indonesia
Japan
Malaysia
Nigeria
Philippines
Qatar
Singapore
South Korea
Spain
Thailand
Turkey
United Arab Emirates
United Kingdom
Vietnam

7

ANNUAL  REPORT2014M I L E S T O N E S

1 9 8 8 

Centrepoint Properties Limited 
(CPL) was listed on the Main Board 
of the Singapore Exchange (SGX-ST)

1 9 9 0

CPL became a subsidiary of F&NL

1 9 9 2 

Northpoint, Singapore’s pioneer 
suburban retail mall in Yishun; 
Bridgepoint, a retail mall in Sydney; 
and Alexandra Point, CPLs’ first 
office project, were launched

1 9 9 8 

CPL’s first two hospitality projects, 
Fraser Suites and Fraser Place in 
Singapore, were launched

2 0 0 1 

Jingan Four Seasons in Shanghai 
was CPL’s first residential project 
developed in China 

2 0 0 6 

CPL was rebranded Frasers 
Centrepoint Limited (FCL)

FCL launched its first REIT, Frasers 
Centrepoint Trust which is listed on 
the Main Board of SGX-ST 

2 0 0 0

Pavilions on the Bay in Australia 
and Annandale House in the United 
Kingdom, CPL’s first overseas 
residential projects were developed 

2 0 0 2 

CPL launched serviced residences 
in the United Kingdom, Korea and 
Philippines

CPL was delisted from SGX-ST and 
became a wholly owned subsidiary 
of F&NL

8

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES1 9 9 3 

The Anchorage, CPL’s first 
residential project, was redeveloped 
from F&N Singapore’s old brewery 
and soft drink plants

1 9 9 6 

CPL’s first overseas office project, 
Me Linh Point, a 
commercial-cum-retail centre in 
Ho Chi Minh City was developed

1 9 9 7 

Alexandra Technopark, CPL’s 
first business space project was 
developed and launched 

2 0 0 8 

FCL acquired a stake in Allco 
Commercial REIT (Allco) and the 
entire stake of Allco’s manager, 
and rebranded the REIT Frasers 
Commercial Trust (FCOT). FCOT is 
listed on the Main Board of SGX-ST

2 0 1 3 

FCL became a member of TCC 
Group

2 0 1 4

FCL was listed by way of 
introduction on the Main Board of 
SGX-ST

Frasers Hospitality Trust was listed 
on the Main Board of SGX-ST.  
It is the first hotel and serviced 
residence stapled group with a 
global mandate, except Thailand,
to be listed on the SGX-ST

FCL wholly acquired Australand, 
an Australian property company

9

ANNUAL  REPORT2014C O R P O R A T E

I N F O R M A T I O N

BOA RD  OF DIRE CTOR S
Mr Charoen Sirivadhanabhakdi  
Non-Executive and  
Non-Independent Chairman

R ISK  MA NAGEMEN T 
C OM M ITTEE
Mr Chotiphat Bijananda 
Chairman

Khunying Wanna Sirivadhanabhakdi 
Non-Executive and  
Non-Independent Vice Chairman

Mr Charles Mak Ming Ying 

Mr Chan Heng Wing 

Mr Weerawong Chittmittrapap

Mr Panote Sirivadhanabhakdi

Mr Sithichai Chaikriangkrai 

AUD IT C OMMI TTEE
Mr Charles Mak Ming Ying  
Chairman

Mr Philip Eng Heng Nee 

Mr Wee Joo Yeow

Mr Sithichai Chaikriangkrai

NO MI NATING C OMM ITTE E
Mr Weerawong Chittmittrapap 
Chairman

Mr Chan Heng Wing

Mr Chotiphat Bijananda

R EM UNERATION  CO MMI TTEE
Mr Philip Eng Heng Nee  
Chairman

Mr Charles Mak Ming Ying 

Mr Panote Sirivadhanabhakdi 

GR O UP MA NAGEMEN T
Mr Lim Ee Seng 
Group Chief Executive Officer

Mr Cheang Kok Kheong 
Chief Executive Officer,  
Development & Property, Singapore

Mr Chia Khong Shoong 
Chief Financial Officer

Mr Choe Peng Sum 
Chief Executive Officer,  
Frasers Hospitality Pte Ltd

Mr Charles Mak Ming Ying  
Non-Executive and Independent 
Director

Mr Chan Heng Wing  
Non-Executive and Independent 
Director

Mr Philip Eng Heng Nee  
Non-Executive and Independent 
Director

Mr Wee Joo Yeow  
Non-Executive and Independent 
Director

Mr Weerawong Chittmittrapap  
Non-Executive and Independent 
Director

Mr Chotiphat Bijananda  
Non-Executive and  
Non-Independent Director

Mr Panote Sirivadhanabhakdi  
Non-Executive and  
Non-Independent Director

Mr Sithichai Chaikriangkrai  
Non-Executive and  
Non-Independent Director 

BOA RD  EXECUTIV E 
COM MI TTEE
Mr Charoen Sirivadhanabhakdi 
Chairman

Mr Charles Mak Ming Ying
Vice Chairman

Mr Chotiphat Bijananda  
Vice Chairman

Mr Wee Joo Yeow

Mr Panote Sirivadhanabhakdi 

Mr Sithichai Chaikriangkrai

10

GROUP  MANAGE MENT 
(C ONT’D)
Mr Tang Kok Kai Christopher 
Chief Executive Officer,  
Commercial

Chief Executive Officer,  
Greater China

Mr Uten Lohachitpitaks 
Chief Investment Officer 

CO MPA NY SEC RETA RI AT
Mr Piya Treruangrachada 
Group Company Secretary

REGI STERED  OFFIC E
#21-00 Alexandra Point
438 Alexandra Road
Singapore 119958
Tel: (65) 6276 4882 
Fax: (65) 6276 6328
Website: fraserscentrepoint.com

SHA RE  REGI STRA R
Tricor Barbinder Share Registration 
Services
80 Robinson Road
#02-00
Singapore 068898
Tel: (65) 6236 3333 
Fax: (65) 6236 4399

A UDI TOR
Ernst & Young LLP
Partner-in-charge:  
Mr Nagaraj Sivaram

PRIN CI PA L B ANK ERS
Australia and New Zealand Banking 
Group Limited

DBS Bank Ltd

National Australia Bank Limited

Oversea-Chinese Banking 
Corporation Limited

Standard Chartered Bank 

Sumitomo Mitsui Banking 
Corporation 

United Overseas Bank Limited

Westpac Banking Corporation

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
G R O U P

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11

ANNUAL  REPORT2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
F I N A N C I A L

H I G H L I G H T S

2010

2011

2012

2013

2014

Revenue ($’m)

 1,708 

 2,234 

 1,412 

 2,053 

 2,735 

Profit before interest, fair value change on 

 503 

 578 

 390 

 571 

 689 

investment properties, taxation and exceptional 
items ($’m)

Profit before tax ($’m)

Before fair value change on investment 
properties and exceptional items

 441 

 525 

 330 

 510 

 678 

After fair value change on investment properties 

 621 

 784 

 721 

 832 

 697 

and exceptional items

Attributable profit ($’m)

Before fair value change and exceptional items

After fair value change and exceptional items

 333 

 484 

 395 

 603 

 252 

 643 

 401 

 722 

 501 

 501 

Earnings per share (cents)

Attributable profit before fair value change on 
investment properties and exceptional items

 42.9 

 51.7 

 33.5 

 53.2 

 20.41 

Attributable profit after fair value change on 

 63.0 

 79.4 

 85.4 

 95.9 

 20.41 

investment properties and exceptional items

Dividend per share

Ordinary shares (cents)

Preference shares ($)

 30.5 

 60.0 

 26.6 

 30.1 

 19.9 

 Nil 

 26.6 

 Nil 

 8.61 

 Nil 

Net asset value (share capital & reserves) ($’m)

 3,960 

 4,384 

 4,932 

 5,451 

 6,436 

Net asset value per share ($)

 4.82 

 5.38 

 6.11 

 6.80 

 2.23*

Return on average shareholders’ equity (%)

Profit before interest, fair value change on 

13.1

13.9

8.4

11.0

11.6

investment properties, taxation &  
exceptional items

Attributable profit before fair value change on 
investment properties & exceptional items

8.6

9.5

5.4

7.7

8.4

1  Calculated based on 2,889,812,572 shares in issue after FCL’s listing on SGX-ST on 9 January 2014

12

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESQueens Riverside, Perth, Australia

Central Park, Sydney, Australia

13

C H A I R M A N ’ S

S T A T E M E N T

Charoen Sirivadhanabhakdi
Chairman

14

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESWE MADE SIGNIFICANT STRIDES IN OUR STRATEGY TO 

ACHIEVE BALANCED GROWTH ACROSS GEOGRAPHIES AND  

PROPERTY SEGMENTS AND IN EXTENDING OUR REIT STRATEGY.

Dear Fellow Shareholders,

FY2013/14 has been an important 
year for Frasers Centrepoint 
Limited (FCL). Beginning with our 
relisting on the Main Board of the 
SGX-ST, this year has been a busy 
year with numerous highlights.

RECOR D REVENUE  AND  C O RE 
EAR NINGS  IN F Y 2013/ 14

Financially, our Group performed 
well this year. We achieved a record 
high revenue of S$2.7 billion. Our 
core earnings, or attributable 
profit before fair value change and 
exceptional items, also reached an 
all-time high of S$501.0 million. 
This strong performance is an 
encouraging indication that we 
are successfully executing our 
strategies to deliver sustainable 
earnings growth.

In view of the good operating 
performance this year, the Board 
of Directors has proposed a final 
dividend of 6.2 Singapore cents. 
Including our interim dividend of 
2.4 Singapore cents, FCL’s total 
dividend for FY2013/14 is  
8.6 Singapore cents, which 
translates to a payout of 
approximately 50% of our core 
earnings. 

S UC C ESSFU L E XECUTION  OF 
GR OWTH STRATEGIES

If I were to describe FY2013/14, 
I would say that it was a year where 
FCL fully demonstrated our ability 
to successfully execute our key 
growth strategies. In particular, 
we made significant strides in our 
strategy to achieve balanced growth 
across geographies and property 
segments and in extending our REIT 
strategy.

Achieving balanced growth via 
acquisition of Australand
Growing FCL’s asset portfolio in a 
balanced manner is an important 
imperative to delivering stable 
earnings and achieving sustainable 
growth. A balanced portfolio will 
allow FCL to diversify and avoid 
undue reliance on any specific 
geography or property segment. 
In addition, stable earnings mean 
clearer visibility of cash flows, which 
creates flexibility and improves 
FCL’s ability to make strategic 
capital management decisions.

As part of this balanced portfolio 
strategy, FCL had planned on 
achieving several key strategic 
objectives over the medium term, 
including increasing the proportion 
of overseas earnings and recurring 
income, as well as enhancing our 
platform in our core overseas 
markets, including Australia. To 
achieve these objectives organically, 
it would have taken five to ten years 
for our efforts to reach fruition. 

This approach, however, is not 
without its risks. The acquisition of 
Australand allows FCL to achieve 
our targets immediately and reach 
the level of scale and depth in 
Australia that we sought. 

With the acquisition of Australand, 
FCL now has scale and depth in 
two of its core markets – Singapore 
and Australia, where it stands 
among the top players in all the 
asset classes that it operates in. 
This allows FCL to access deal 
flow, achieve synergies, and enjoy 
economies of scale. Looking 
at FCL’s asset breakdown by 
geographical segment as at 
30 September 2014, our assets in 
Australia and Singapore are about 
equal, with both making up a little 
over 40% each. Our proportion of 
recurring income to development 
income will also become more 
balanced, and we should see this 
from the next financial year as FCL 
takes in full-year contributions from 
Australand.

Extending REIT strategy with FHT 
listing and asset injection into FCT
Our REIT strategy is one of FCL’s key 
growth strategies; we see REITs as 
the right platform to efficiently hold 
stabilised investment properties. 
Our REITs are not only an efficient 
capital recycling platform, they 
also generate an additional source 
of revenue for FCL in the form of 
asset management fees, thereby 
strengthening our income base. 
Importantly, our REITs allow 
FCL to generate quality earnings 
throughout the entire real estate 
value chain.

15

ANNUAL  REPORT2014C H A I R M A N ’ S

S T A T E M E N T

Phase 3 of Chengdu Logistics Hub, Chengdu, China

We achieved a milestone in our 
REIT strategy this year with the 
listing of Frasers Hospitality Trust 
(FHT). A hospitality REIT is a logical 
extension of FCL’s REIT strategy. 
FCL already has a retail REIT, 
Frasers Centrepoint Trust (FCT), 
to support the growth of our retail 
business, and an office and business 
space REIT, Frasers Commercial 
Trust (FCOT), to support the growth 
of our office business. A hospitality 
REIT will help support the growth 
of our fast-growing hospitality 
business, and this plan was realised 
when FHT was listed in July 2014 
with six serviced residences and six 
hotels.   

During the year we also completed 
the divestment of Changi City Point 
(CCP) to FCT in June. CCP had 
been ear-marked for injection into 
FCT for some time. We recorded a 
healthy profit on this divestment, 
which has been reflected in our 
financial performance. 

16

R EAC HI NG A  NEW  LEV EL  OF 
GR OWT H 

This year, with FCL’s relisting on 
the SGX Main Board and successful 
execution of its key growth 
strategies, FCL has reached a new 
level of growth. 

As we look ahead, we will remain 
focused on our sustainable growth 
tripod – Singapore, Australia and 
China. Singapore is FCL’s home 
market, a market that we’re very 
familiar with and well entrenched 
in. We will seek to maintain 
our position as a market leader 
in Singapore and focus on the 
disciplined execution of our growth 
strategies. With Australand, we 
are now equally deeply rooted 
in Australia, and our immediate 
priority is to ensure that we do a 
good job with the integration of 
our Australian businesses. We will 
continue to grow and strengthen 
our two strong legs of Singapore 
and Australia, even as we look for 
opportunities over the medium term 
to strengthen our third leg of China. 

In our view, China is a country 
that we in Asia cannot credibly 
ignore. The macro trends of rapid 
urbanisation and rising wealth all 
bode well for the real estate market 
in China over the long term. China’s 
real estate market is not the easiest 
market to be in, but FCL has been 
doing business in China for over a 
decade now, and we have a solid 
platform in our three chosen cities 
of Shanghai, Chengdu and Suzhou, 
from which to grow our position. We 
are keeping a close eye on China for 
opportunities in the medium term. 

The global environment is 
increasingly volatile, and cycles have 
shortened. While the environment 
may present challenges, 
opportunities also often emerge. 
FCL’s growth strategies are designed 
precisely to enable FCL to trade 
through cycles, and we have a proven 
track record of doing that. FCL is 
better positioned now than ever 
before to continue making waves in 
the global real estate sector, and 
to offer opportunities for all our 
stakeholders to grow with us. 

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESFCL IS BETTER POSITIONED NOW THAN EVER BEFORE TO CONTINUE 

MAKING WAVES IN THE GLOBAL REAL ESTATE SECTOR, AND TO OFFER 

OPPORTUNITIES FOR ALL OUR STAKEHOLDERS TO GROW WITH US. 

PRUDENT CAPITAL 
MANAGEME NT

As FCL works towards fulfilling 
our growth ambitions, we are 
ever-mindful of the importance of 
prudent capital management. FCL’s 
net debt to equity stood at 95% 
as at 30 September 2014. Given 
the capital intensive nature of our 
industry, we believe that a sensible 
level of gearing is appropriate for a 
growing company like FCL. We are 
comfortable with a level of between 
80% and 100%.

FCL is well-equipped to manage 
our gearing. Firstly, FCL has clear 
earnings visibility with S$3.9 billion 

of unrecognised development 
revenue at year end. Secondly, 
FCL has a sizeable proportion of 
recurring income in our income 
mix. Last but not least, FCL has a 
number of investment properties 
within our portfolio that may be 
suitable assets for injection into our 
listed REITs at the right time, if the 
REITs are keen. 

As part of our disciplined capital 
management efforts, FCL has 
also been working to diversify our 
funding sources and bolster our 
balance sheet. During the year, 
FCL increased our multi-currency 
medium term note programme 
(MTN programme) from S$1 billion 

to S$3 billion. FCL issued our first 
perpetual capital securities under 
this MTN programme in September. 
The S$600 million, 4.88% 
subordinated perpetual capital 
securities was very well received. 
In October, FCL issued another 
S$200 million seven-year 3.95% 
fixed-rate notes, and we shared 
with shareholders our intention to 
issue additional perpetual capital 
securities.

We believe that our attention to 
prudent capital management will 
enable FCL to achieve a sustainable 
capital structure that will position 
us strategically for long-term 
growth.

Rhodes Building F, Sydney, Australia

17

ANNUAL  REPORT2014C H A I R M A N ’ S

S T A T E M E N T

Fraser Suites, Singapore

AC KNOWLEDGEMEN TS

FCL is where it is today because 
of the support of our many 
stakeholders. To my esteemed 
colleagues on the Board, thank you 
for the valuable guidance. I want to 
express my sincere gratitude too, 
to our business partners, financial 
advisers, bankers, customers and 
shareholders, for their unwavering 
support of FCL. On behalf of the 
Board, I would also like to thank 
the Boards of FCT, FCOT and 
FHT, for their stewardship of our 
listed REITs. Last but not least, 
I would like to express my deep 
appreciation to our employees for 
their dedication and hard work.

18

On behalf of the Board, I would like 
to assure our stakeholders that FCL 
will strive to continue delivering 
value to all our stakeholders. 
We will maintain a high standard 
of corporate governance and 
transparency, and we are gratified 
that our efforts in this area have 
been recognised with FCL winning 
the Most Transparent Company 
Award 2014 in the New Issues 
Category at the 15th SIAS Investors’ 
Choice Awards in our first year 
of listing. We will also bear in 
mind our role as a responsible 
corporate citizen and strive to keep 
sustainability as a cornerstone of 
our growth strategies.

Charoen Sirivadhanabhakdi
Chairman

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESE I G H T   C O U R T YA R D S

S I N G A P O R E

19

B O A R D

O F   D I R E C T O R S

CHAROEN SIRIVADHANABHAKDI, 70

KHUNYING WANNA SIRIVADHANABHAKDI, 71

Non-Executive and Non-Independent Chairman

Non-Executive and Non-Independent Vice Chairman

Date of first appointment as a director  
Date of last re-election as a director 
Length of service as a director (as at 30 Sep 2014)  :  11 months

:  25 Oct 2013
:  -

Date of first appointment as a director 
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)   :  8 months

:  07 Jan 2014
:  -

Board committee(s) served on
• Board Executive Committee (Chairman)

Board committee(s) served on
Nil

Academic & Professional Qualification(s)
• Honorary Doctoral Degree in Agricultural Business 

Administration, Maejo Institute of Agricultural Technology, 
Thailand

• Honorary Doctoral Degree in Industrial Technology, 

Chandrakasem Rajabhat University, Thailand

Academic & Professional Qualification(s)
•  Honorary Doctoral Degree in Bio-Technology, 

Ramkhamhaeng University, Thailand

• Honorary Doctoral Degree in Agricultural Business 

Administration, Maejo Institute of Agricultural Technology, 
Thailand

• Honorary Doctoral Degree in Management, Huachiew 

•  Honorary Doctoral Degree in Business Administration, 

Chalermprakiet University, Thailand

Chiang Mai University, Thailand

•  Honorary Doctoral Degree in Business Administration, 

•  Honorary Doctor of Philosophy in Social Sciences, Mae Fah 

Eastern Asia University, Thailand

Luang University, Thailand

•  Honorary Doctor of Philosophy in Business Administration, 

• Honorary Doctoral Degree in Business Administration 

and Information Technology, Rajamangala University of 
Technology Tawan-ok, Thailand

Present Directorships (as at 30 Sep 2014)
Listed companies
•  Berli Jucker Public Company Limited (Vice Chairman)
•  Thai Beverage Public Company Limited (Vice Chairman)
•  Fraser and Neave, Limited (Vice Chairman)

Others
•  Beer Thip Brewery (1991) Co., Ltd. (Chairman)
• Sangsom Group of Companies (Chairman)
•  TCC Capital Land Limited (Vice Chairman)
•  TCC Holding Co., Ltd. (Vice Chairman of Executive Board)

Major Appointments (other than Directorships)
Nil

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
Nil

Mae Fah Luang University, Thailand

•  Honorary Doctoral Degree in Management, Rajamangala 

University of Technology Suvarnabhumi, Thailand
• Honorary Doctoral Degree in International Business 
Administration, University of the Thai Chamber of 
Commerce, Thailand

• Honorary Doctoral Degree in Sciences and Food Technology, 

Rajamangala University of Technology Lanna, Thailand
• Honorary Doctoral Degree in Hospitality and Tourism, 

Christian University of Thailand, Thailand

Present Directorships (as at 30 Sep 2014) 
Listed companies
• Berli Jucker Public Company Limited (Chairman)
•  Thai Beverage Public Company Limited (Chairman)
•  Fraser and Neave, Limited (Chairman)

Others
•  Beer Thai (1991) Public Company Limited (Chairman)
•  Red Bull Distillery Group of Companies (Chairman)
•  Southeast Group Co., Ltd. (Chairman)
•  TCC Holding Co., Ltd. (Chairman)
•  TCC Land Co., Ltd. (Chairman)

Major Appointments (other than Directorships)
Nil

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
Nil

Others
Nil

20

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESCHARLES MAK MING YING, 62

CHAN HENG WING, 68

Non-Executive and Independent Director

Non-Executive and Independent Director

Date of first appointment as a director  
Date of last re-election as a director 
Length of service as a director (as at 30 Sep 2014)  :  11 months

:  25 Oct 2013
:  -

Date of first appointment as a director 
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)   :  11 months

:  25 Oct 2013
:  07 Jan 2014

Board committee(s) served on
• Audit Committee (Chairman)
• Board Executive Committee (Vice Chairman)
• Remuneration Committee
• Risk Management Committee

Academic & Professional Qualification(s)
• Master of Business Administration, PACE University, USA
• Bachelor of Business Administration, PACE University, USA

Present Directorships (as at 30 Sep 2014)
Listed companies
Nil

Major Appointments (other than Directorships)
• Morgan Stanley Asia Pacific (Vice Chairman)
• Morgan Stanley International Wealth Management
  (President)

Past Directorships in listed companies held over the
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Fraser and Neave, Limited

Others
• Senior Advisor to Morgan Stanley Asia’s Investment Banking 

Division

• Previously the Chairman and Director of Bank Morgan 

Stanley AG

• Previously a Director in Morgan Stanley Asia Limited and 
a member of Morgan Stanley’s Asia Pacific Executive 
Committee, the Morgan Stanley Wealth Management 
Committee and the International Operating Committee
• Previously Managing Director and Head of Morgan Stanley 

Board committee(s) served on
• Nominating Committee
• Risk Management Committee

Academic & Professional Qualification(s)
• Master of Science, Columbia Graduate School of Journalism, 

USA

• Master of Arts, University of Singapore, Singapore
• Bachelor of Arts (Honours), University of Singapore, 

Singapore

Present Directorships (as at 30 Sep 2014)
Listed companies
• Banyan Tree Holdings Ltd.
• Shanda Games Ltd.

Others
• Precious Quay Pte. Ltd.
• Precious Treasures Pte. Ltd.

Major Appointments (other than Directorships)
• Ministry of Foreign Affairs : Singapore’s Non-Resident  
High Commissioner to Bangladesh and Senior Advisor

• Milken Institute Asia Center (Chairman)

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Fraser and Neave, Limited

Others
• Previously Managing Director of Temasek Holdings
• Previously Singapore’s Consul General to Hong Kong and 

Shanghai

Asia Pacific Private Wealth Management

• Previously Singapore’s Ambassador to Thailand

• Previously Executive Director and Senior Investment Adviser 

of Morgan Stanley’s Private Wealth Management Group

21

ANNUAL  REPORT2014B O A R D

O F   D I R E C T O R S

PHILIP ENG HENG NEE, 68

WEE JOO YEOW, 67

Non-Executive and Independent Director 

Non-Executive and Independent Director

Date of first appointment as a director  
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)  :  11 months

:  25 Oct 2013
:  -

Date of first appointment as a director 
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)   :  6 months

:  10 Mar 2014
:  -

Board committee(s) served on
• Remuneration Committee (Chairman)
• Audit Committee

Board committee(s) served on
• Executive Committee
• Audit Committee

Academic & Professional Qualification(s)
• Bachelor of Commerce in Accountancy, University of New 

Academic & Professional Qualification(s)
• Master of Business Administration, New York University, 

South Wales, Australia

USA

• Associate Member, Institute of Chartered Accountants in 

• Bachelor of Business Administration (BBA Hons), University 

Australia

of Singapore

Present Directorships (as at 30 Sep 2014)
Listed companies
• Mapletree Industrial Trust Management Ltd
• PACC Offshore Services Holdings Ltd
• Oversea-Chinese Banking Corporation Limited

Major Appointments (other than Directorships)
Nil

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Orix Leasing Singapore Limited
• Singapore-Bintan Resort Holdings Pte Ltd

Others
Nil

Present Directorships (as at 30 Sep 2014)
Listed companies
• Ezra Holdings Limited
• Frasers Centrepoint Asset Management Ltd. (Chairman)
• MDR Limited (Chairman)
• PT Adira Dinamika Multi Finance Tbk (Commissioner)
• The Hour Glass Limited

Others
• Frasers Australand Pty Ltd
• Hektar Asset Management Sdn Bhd
• Heliconia Capital Management Pte. Ltd.
• KK Women’s and Children’s Hospital Pte. Ltd.
• NTUC Income
• Singapore Health Services Pte. Ltd.
• Vanda 1 Investments Pte. Ltd.

Major Appointments (other than Directorships)
• Ministry of Foreign Affairs : Singapore’s Non-Resident  

High Commissioner to Canada

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Asia Pacific Breweries Limited
• Fraser and Neave, Limited

Others
Nil

22

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESWEERAWONG CHITTMITTRAPAP, 56

CHOTIPHAT BIJANANDA, 51

Non-Executive and Independent Director

Non-Executive and Non-Independent Director

Date of first appointment as a director 
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)   :  11 months

:  25 Oct 2013
:  -

Date of first appointment as a director 
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)   :  1 year    
  6 months

:  08 Mar 2013
:  07 Jan 2014

Board committee(s) served on
• Nominating Committee (Chairman)
• Risk Management Committee

Academic & Professional Qualification(s)
• Thai Barrister-at-Law and the first Thai lawyer admitted to 

the New York State Bar

• Master of Law, University of Pennsylvania, USA
• Bachelor of Law, Chulalongkorn University, Thailand

Present Directorships (as at 30 Sep 2014)
Listed companies
• Berli Jucker Public Company Limited
• SCB Life Assurance Public Company Limited
• Thai Airways International Public Company Limited
• Siam Commercial Bank Public Company Limited

Others
• National Power Supply Public Company Limited

Major Appointments (other than Directorships)
• Thai Institute of Directors (Special Lecturer)

Past Directorships in listed companies held over the
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Minor International Public Company Limited
• Fraser and Neave, Limited
• Siam Food Public Company Limited
• Nok Airlines Public Company Limited
• Golden Land Property Development Public Company Limited
• GMM Grammy Public Company Limited
• Weerawong, Chinnavat & Peangpanor Limited 

Others
Nil 

Board committee(s) served on
•  Risk Management Committee (Chairman)
•  Board Executive Committee (Vice Chairman)
•  Nominating Committee

Academic & Professional Qualification(s)
•  Master of Business Administration, Finance, University of 

Missouri, USA

•  Bachelor of Laws, Thammasat University, Thailand

Present Directorships (as at 30 Sep 2014)
Listed companies
•  Sermsuk Public Company Limited
•  Golden Land Property Development Public Company Limited
•  Fraser and Neave, Limited

Others
•  Australand Holdings Limited
•  Australand Property Limited
•  Australand Investments Limited
•  Frasers Australand Pty Ltd
•  Southeast Group Co., Ltd. (President)
•  Southeast Insurance Public Co., Ltd. (Chairman of Executive 

Board)

•  Southeast Life Insurance Public Co., Ltd. (Chairman of 

Executive Board)

•  Southeast Capital Co., Ltd. (Chairman of Executive Board)
•  TCC Assets Limited
•  TCC Technology Co., Ltd.

Major Appointments (other than Directorships)
Nil

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
Nil

Others
Nil

23

ANNUAL  REPORT2014 
B O A R D

O F   D I R E C T O R S

PANOTE SIRIVADHANABHAKDI, 37

SITHICHAI CHAIKRIANGKRAI, 60

Non-Executive and Non-Independent Director

Non-Executive and Non-Independent Director

Date of first appointment as a director  
Date of last re-election as a director  
Length of service as a director (as at 30 Sep 2014)  :  1 year 

:  08 Mar 2013
:  07 Jan 2014

Date of first appointment as a director  
Date of last re-election as a director 
Length of service as a director (as at 30 Sep 2014)  :  1 year 

:  07 Aug 2013
:  07 Jan 2014

  6 months

  1 month

Board committee(s) served on
•  Board Executive Committee
•  Remuneration Committee
•  Risk Management Committee

Board committee(s) served on
• Board Executive Committee
• Audit Committee
• Risk Management Committee

Academic & Professional Qualification(s)
• Master of Science in Analysis, Design and Management 

of Information System, London School of Economics and 
Political Science, UK

Academic & Professional Qualification(s)
• Bachelor of Accountancy (First Class Honours), Thammasat 

University, Thailand

• Diploma in Computer Management, Chulalongkorn 

• Bachelor of Science in Manufacturing Engineering, Boston 

University, Thailand

University, USA

• Certificate of the Mini MBA Leadership Management, 

• Certificate in Industrial Engineering and Economics, 

Kasetsart University, Thailand

Massachusetts University, USA

Present Directorships (as at 30 Sep 2014)
Listed companies
•  Berli Jucker Public Company Limited
•  Golden Land Property Development Public Company Limited 

(Vice Chairman)

•  Siam Food Products Public Company Limited
•  Thai Beverage Public Company Limited
•  Univentures Public Company Limited

Others
•  Australand Holdings Limited
•  Australand Property Limited
•  Australand Investments Limited
•  Beer Thip Brewery (1991) Co., Ltd.
•  Blairmhor Distillers Limited
•  Blairmhor Limited
•  Frasers Australand Pty Ltd
•  InterBev (Singapore) Limited
•  International Beverage Holdings (China) Limited
•  International Beverage Holdings Limited
• International Beverage Holdings (UK) Limited
• Sura Bangyikhan Group of Companies

Present Directorships (as at 30 Sep 2014)
Listed companies
• Thai Beverage Public Company Limited
• Berli Jucker Public Company Limited
• Golden Land Property Development Public Company Limited
• Oishi Group Public Company Limited
• Siam Food Products Public Company Limited
• Sermsuk Public Company Limited
• Univentures Public Company Limited
• Fraser and Neave, Limited

Others
• InterBev Investment Limited
• International Beverage Holdings Limited
• Certain Subsidiaries of Thai Beverage Public Company 

Limited

• Certain Subsidiaries of Berli Jucker Public Company Limited
• Certain Subsidiaries of Oishi Group Public Company Limited
• Certain Subsidiaries of Siam Food Products Public Company 

Limited

• Certain Subsidiaries of Sermsuk Public Company Limited

Major Appointments (other than Directorships)
• Thai Beverage Public Company Limited (Chief Financial 

Major Appointments (other than Directorships)
• Univentures Public Company Limited (Chief Executive 

Officer)

Officer)

Past Directorships in listed companies held over the
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
• Fraser and Neave, Limited

Past Directorships in listed companies held over the 
preceding three years (from 01 Oct 2011 to 30 Sep 2014)
Nil

Others
Nil 

Others
Nil

24

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
 
F L A M I N G O   VA L L E Y

S I N G A P O R E

25

G R O U P

M A N A G E M E N T

LIM EE SENG, PBM, 63 

CHIA KHONG SHOONG, 43

UTEN LOHACHITPITAKS, 41

Group Chief Executive Officer
Frasers Centrepoint Limited 
Date Appointed : 

15 October 2004

Chief Financial Officer
Frasers Centrepoint Limited
Date Appointed : 

2 March 2009

Chief Investment Officer
Frasers Centrepoint Limited
Date Appointed : 

1 October 2013

Mr Chia is responsible for all aspects 
of FCL Group’s finance. He has direct 
oversight of the Finance, Corporate 
Planning, Tax, Treasury and Group 
Communications units. 

Academic & Professional Qualifications
•  Bachelor of Commerce (Accounting 
and Finance), University of Western 
Australia

• Master of Philosophy (Management 

Studies), Cambridge University

Working Experience
• 1996 – 2004 
  Vice President, Global Investment 

Banking, Citigroup / Salomon Smith 
Barney / Schroders

• 2004 – 2008
  Director, Investment Banking and 
Global Banking, The Hongkong & 
Shanghai Banking Corporation Ltd

Significant Directorships 
(as at 30 Sep 2014)
• Frasers Centrepoint Asset 

Management Ltd, Manager of Frasers 
Centrepoint Trust

• Frasers Centrepoint Asset 

Management (Commercial) Limited, 
Manager of Frasers Commercial Trust

Mr Lohachitpitaks is responsible for FCL 
Group’s capital markets transactions, 
managing and monitoring the Group’s 
portfolio of assets, devising strategies 
for acquisitions and liaising with 
investors. 

Academic & Professional Qualifications
•  Bachelor of Business Administration, 

Assumption University, Thailand
• Master of Business Administration, 
Assumption University, Thailand

Working Experience
• 1996 – 2005
  Vice President, Corporate & 

Investment Banking Group, DBS Bank 
Ltd

• 2005 – 2006
  Director, Investment Banking Division, 
United Overseas Bank (Thai) Public 
Company Limited

• 2006 – 2013
  Managing Director, Strategic Advisory, 

DBS Bank Ltd

Significant Directorships 
(as at 30 Sep 2014)
Nil

Mr Lim is responsible for executing  
FCL Group’s strategies and policies and 
is accountable to the Board of Directors 
for the management and performance of 
the Group’s entire portfolio which spans 
more than 20 countries.

Academic & Professional Qualifications
•  Bachelor of Engineering (Civil), 

University of Singapore
• Master of Science (Project 

Management), National University of 
Singapore

• Member, The Institution of Engineers, 

Singapore

• Fellow, Singapore Institute of 

Directors

Working Experience
• 1982 – 1989
  Project Manager, Singapore Land Ltd
• 1989 – 1996
  General Manager (Property Division), 

First Capital Corporation Ltd

• 1996 – 2004
  Managing Director, MCL Land Limited

Significant Directorships
(as at 30 Sep 2014)
• Frasers Australand Pty Ltd
• Frasers Centrepoint Asset 

Management Ltd, Manager of Frasers 
Centrepoint Trust

• Frasers Centrepoint Asset 

Management (Commercial) Limited, 
Manager of Frasers Commercial Trust
• Frasers Hospitality Asset Management 

Pte Ltd, Manager of Frasers 
Hospitality Trust

26

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESCHEANG KOK KHEONG, 59

CHOE PENG SUM, 54

TANG KOK KAI CHRISTOPHER, 53

Chief Executive Officer  
Development and Property
Frasers Centrepoint Limited 
Date Appointed : 

1 October 2010

Chief Executive Officer
Frasers Hospitality Pte Ltd
Date Appointed : 

19 June 2007

Mr Cheang oversees the Development 
and Property Division that builds 
residential developments under the 
Frasers Centrepoint Homes brand. 
He has oversight of the design and 
project management of developments, 
ensuring quality construction, cost and 
time control and compliance with all 
regulatory and project requirements.

Academic & Professional Qualifications
•  Bachelor of Architecture, National 

University of Singapore

• Master of Science in Tourism, 

Planning and Development, University 
of Surrey

Working Experience
• 1994 – 1998
  Senior Manager, Projects,  

DBS Land Limited

• 1998 – 2002
  Senior Manager, Projects, 

Ascendas Land (Singapore)  
Pte Ltd

• 2002 – 2005
  General Manager, Projects, 

MCL Land Limited

• 2007 – 2010
  Chief Operating Officer,  

Development and Property,  
Frasers Centrepoint Limited

Significant Directorships 
(as at 30 Sep 2014)
Nil

Mr Choe oversees the Frasers 
Hospitality group’s business from 
investments, business development, 
global expansion of the chain of  
gold-standard serviced residences and 
hotels worldwide, to funds and asset 
management of hotels and serviced 
residences on a global mandate.

Academic & Professional Qualifications
•  Bachelor of Science with Distinction, 

Cornell University, New York

• President’s Honor Roll, Washington 

State University

• Executive Development Programme, 
International College of Hospitality 
Administration, BRIG, Switzerland

Working Experience
• 1984 – 1994 
  Executive Assistant Manager, Shangri-

La Hotel, Singapore

• 1994 – 1996 
  Resident Manager, Portman Shangri-

La Hotel, Shanghai

• 1996 – 2007
  General Manager of Hospitality, 
Frasers Centrepoint Limited

Significant Directorships 
(as at 30 Sep 2014)
• Frasers Hospitality Asset Management 

Pte Ltd, Manager of Frasers 
Hospitality Trust

Chief Executive Officer
Commercial1 & Greater China2
Frasers Centrepoint Limited
Date Appointed :  

1 October 20061 and  
1 October 20102

Mr Tang oversees FCL’s business in 
the Commercial real estate space of 
Retail Malls and Offices. He oversees 
the entire value chain of investment, 
development and property management 
to asset and fund management. Mr Tang 
also oversees FCL’s property interests in 
China, providing leadership to the China 
team in the residential and commercial 
business there.  

Academic & Professional Qualifications
•  Bachelor of Science, National 

University of Singapore

• Master of Business Administration, 
National University of Singapore

Working Experience
• 1997 – 2000
  Senior Manager, Strategic Planning 
and Asset Management, DBS Land 
Limited                      

• 2000 – 2001
  Vice President, Private Equity, DBS 

Bank Ltd
• 2001 – 2002
  General Manager, Strategic Planning 

and Asset Management, Frasers 
Centrepoint Limited

• 2002 – 2006
  General Manager, Strategic Planning 
and Asset Management, Fraser and 
Neave, Limited

• 2006 – 2010
  Chief Executive Officer, Frasers 

Centrepoint Asset Management Ltd

Significant Directorships 
(as at 30 Sep 2014)
• Frasers Centrepoint Asset 

Management Ltd, Manager of Frasers 
Centrepoint Trust

• Frasers Centrepoint Asset 

Management (Commercial) Limited, 
Manager of Frasers Commercial Trust

• Hektar Asset Management Sdn Bhd, 

Manager of Hektar REIT

27

ANNUAL  REPORT2014 
G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

Lim Ee Seng
Group CEO

28

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESFCL’S PERFORMANCE THIS YEAR IS A VALIDATION OF 

THE GROUP’S OVERSEAS AND REIT STRATEGIES. FCL 

ACHIEVED RECORD REVENUE AND ATTRIBUTABLE PROFIT 

BEFORE FAIR VALUE CHANGE AND EXCEPTIONAL ITEMS 

(APBFE) IN FY2013/14. 

Group revenue grew by 33% to
S$2,734.9 million, while core earnings 
(APBFE) grew by 25% to S$501.0 
million. This robust growth was 
largely driven by completions of 
overseas development projects in 
Australia, China and the United 
Kingdom. During the year, the 
Group’s divestment of a retail asset, 
Changi City Point, to its retail REIT, 
Frasers Centrepoint Trust (FCT), 
also contributed to the increase.

On a balance sheet level, we ended 
the year with total assets of 
S$16.9 billion, a significant increase 
of 62% from last year largely due 
to the acquisition of Australand. 
Meanwhile our gearing, or net  
debt/equity, stood at 95% as at  
30 September 2014, within our 
comfort zone of a gearing level of 
between 80% and 100%.

Looking at some key ratios, the 
Group’s FY2013/14 earnings per 
share (EPS) and net asset value 
(NAV)1 per share as at 30 September 
2014 have both increased to 
20.39 Singapore cents and S$2.23 
respectively. Our return on equity2 
also went up from 7.7% to 8.4%.

GR OWTH THROUGH  OUR K EY 
S TR ATE GIES

In FY2013/14, we executed 
three key corporate actions 
that demonstrated the Group’s 
commitment to carrying out our 
growth strategies of growing 
our business and asset portfolio 
in a balanced manner across 
geographies and property 
segments, as well as optimising 
capital productivity and 
strengthening our income base 
through our REIT platforms.

Achieving balanced growth
As part of the Group’s strategy of 
growing its business and asset 
portfolio in a balanced manner 
across geographies and property 
segments, FCL announced on 
4 June 2014 that it had submitted 
an indicative non-binding proposal 
to acquire Australian Securities 
Exchange (ASX)-listed Australand 
Property Group (Australand), one 
of Australia’s leading diversified 
property groups. 

Following the completion of a 
four-week due diligence process, 
FCL launched a conditional cash 
offer (Offer) on 7 July 2014 to 
acquire all stapled securities 
in Australand. The Offer valued 
Australand at approximately 
A$2.6 billion (S$3.1 billion). 
FCL received acceptances of 
approximately 56.8% of the issued 

stapled securities of Australand on 
7 August 2014 and the Offer was 
declared unconditional. At the close 
of the offer period on 4 September 
2014, FCL held an interest of 98.4% 
of the issued stapled securities of 
Australand. On 24 September 2014, 
FCL commenced a compulsory 
acquisition of the outstanding 
Australand securities that it did 
not already own. As of 31 October 
2014, FCL successfully acquired 
100% of Australand, and Australand 
securities were delisted from the 
close of trading hours on 
3 November 2014.

The acquisition of Australand is a 
transformational transaction that 
we expect will deliver significant 
benefits, including: 
•  Substantial increase in asset and 
profit contribution from outside of 
Singapore;

•  Improved sustainability of 

earnings through increased 
contribution from recurring 
income;

•  Access to a quality platform with 
immediate scale in Australia, a 
core market;

•  Ownership of an attractive 
commercial and industrial 
portfolio with development 
capabilities; and

•  Enhanced residential development 

capabilities in Australia.

1  After fair value adjustments on investment 

properties and exceptional items

2  APBFE over Average Shareholder Fund 

29

ANNUAL  REPORT2014 
G R O U P   C E O ’ S

B U S I N E S S   R E V I E W
B U S I N E S S   R E V I E W

Hospitality REIT
On 30 June 2014, FCL, through our 
wholly owned subsidiaries Frasers 
Hospitality Asset Management Pte. 
Ltd. and Frasers Hospitality Trust 
Management Pte. Ltd., launched an 
initial public offering (IPO) of stapled 
securities in Frasers Hospitality 
Trust (FHT). FCL received gross 
proceeds of S$654.7 million from 
the injection of six of our serviced 
residences into FHT. FHT’s initial 
portfolio also comprised six 
international hotel assets injected 
by FCL’s majority shareholder, the 
TCC Group, making FHT the first 
hotel and serviced residence stapled 
trust with a global mandate3 to be 
listed on the SGX-ST. Following the 
successful IPO, which was 19 times 
subscribed, FHT was listed on the 
Main Board of the SGX-ST on 
14 July 2014.

Divestment of CCP
In line with the group’s REIT 
strategy, FCL also completed the 
divestment of Changi City Point to 
FCT during the year. Changi City 
Point was held through Ascendas 
Frasers Pte. Ltd., a 50:50 joint 
venture between FCL and Ascendas 
Development Pte. Ltd. FCL’s 50% 
share of the gross proceeds from 
the divestment was S$152.5 million. 

3    Except Thailand

Thrive Parkside, Melbourne, Australia

Why Australia specifically? Australia 
is a core market for FCL. The 
Group chose to enter the Australian 
market over a decade ago due 
to favourable fundamentals, 
including its transparent regulatory 
environment, strong corporate 
governance, as well as its deep 
and mature property market. 
While Australia is not a market 
with high margins and growth 
rates, the growth there is stable 
and sustainable. High margins, 
at the end of the day, do not last, 
and we want to be in a market for 
the long term. We already have 
an established platform and good 
brand recognition in Australia, but 
scale and depth matter in the real 
estate business. With scale and 
depth, we can do so much more in 
Australia, and that is exactly what 
the acquisition is about.

30

Which brings me to, why 
Australand? Australand’s portfolio 
complements FCL’s Australian 
business in terms of geography 
and product segments; there is 
very little overlap in our areas of 
business. In addition, Australand has 
a platform that is well developed, 
scalable, profitable, and an 
experienced and well-regarded 
management team. So what FCL 
acquired is a true quality platform 
with immediate scale in Australia. 

I am pleased to note that the 
acquisition of Australand was 
retroactively approved by FCL’s 
shareholders at an Extraordinary 
General Meeting convened on 
12 November 2014.

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESG R O U P   C E O ’ S

B U S I N E S S   R E V I E W

DEVELOPMENT 
PROPERTIES

Eight Courtyards, Singapore

Baitang One, Suzhou, China

31

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

DEV ELOPMENT 
PROP ERTIES

Revenue from development 
properties increased by 33% to 
S$2,236 million compared to 
S$1,682 million last year. This was 
attributable to higher development 
revenue from overseas projects, 
which accounted for 61% of the 
Group’s overall development 
revenue. This growth was largely 
fuelled by completions in Australia, 
China and the United Kingdom, 
including Central Park and Queens 
Riverside in Australia, Chengdu 
Logistics Hub and Baitang One 
in Suzhou, China, and Riverside 
Quarter in the United Kingdom.  
In line with revenue growth, PBIT 
also increased 29% by S$111 million 
to S$491 million. The increase was 
partly offset by a decline in revenue 
and profitability from Singapore 
projects. 

As at 30 September 2014, 
development properties’ 
unrecognised revenue stood at 
about S$2.2 billion, comprising 
about S$1.7 billion in Singapore, 
S$400 million in Australia, and 
S$100 million in China.

S INGAPORE

In Singapore, we made creditable 
sales during the year despite 
the additional cooling measures 
introduced by the Singapore 
government in 2013 and large 
supplies entering the market.

In February 2014, we launched 
RiverTrees Residences and sold 
200 of the 300 units released for 
sale on the first day. To-date, 
58.3% of the development has 
been taken up. It is of paramount 
importance to FCL that we keep 
our fingers firmly on the pulse of 
the market. This way, we are able 
to offer residential developments 
with the right offerings. RiverTrees 
Residences features superior 

design and home layouts, as well as 
product innovation, with over 80% of 
the units enjoying views of tropical 
landscaping, pools and the Punggol 
Reservoir. We also introduced eight 
Cove Houses – unique waterfront 
landed houses with reservoir and 
greenery frontage. RiverTrees 
Residences is a joint development 
with Far East Organization and 
Sekisui House Ltd.

We also continued to see sales in 
other residential developments in 
our portfolio. Two developments 
launched in 2013, Q Bay Residences 
and executive condominium (EC) 
Twin Fountains, enjoyed  
take-up rates of 99.8% and 88.0% 
respectively. On average, our 
portfolio of residential development 
projects is 95% sold. 

During the year, Waterfront Gold, 
Eight Courtyards, Flamingo Valley 
and our Good Class Bungalows 
in Holland Park received their 
Temporary Occupation Permits 
(TOPs). Together, these yielded 
more than 1,400 units.

Watertown, Singapore

32

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESSINGAPORE:  Projects currently under development

Effective 

interest (%) No. of units

% of units 
sold 

% 
Completion

Ave. selling 
price (S$ psf)

Land cost  
(S$ psf)

Target 
completion date

50.0

50.0

100.0

50.0

50.0

50.0

80.0

100.0

33.3

33.3

33.3

70.0

40.0

361

656

393

563

475

494

728

430

750

632

992

418

496

100.0

100.0

97.7

98.9

100.0

100.0

99.9

97.7

93.5

99.8

99.3

88.0

58.5

100.0

100.0

100.0

81.3

94.0

88.5

82.3

77.7

31.9

48.0

26.9

45.9

0.0

973

807

1,233

1,042

932

910

711

857

1,324

1,032

1,221

744

1,094

240

321

415

240

334

320

270

325

534

418

482

302

533

Completed

Completed

Completed

2QFY2014/15

1QFY2014/15

2QFY2014/15

2QFY2014/15

3QFY2014/15

2QFY2015/16

3QFY2015/16

1QFY2016/17

2QFY2015/16

2QFY2016/17

Project

Waterfront Gold

Eight Courtyards

Flamingo Valley

Waterfront Isle

Seastrand

Boathouse Residences

Twin Waterfalls EC

Palm Isles

eCO

Q Bay Residences

Watertown

Twin Fountains EC

RiverTrees Residences

SINGAPORE:  Land bank

Sites

Location

Effective 
interest (%)

Est. no. 
of units

Est. saleable 
area (‘m sq ft)

Land cost  
(S$ psf ppr)

Tenure

Est. launch  
ready date

North Park Residences

Yishun

100.0

Sembawang EC

Sembawang

80.0

TOTAL

920

670

 1,590 

 0.7 

 0.7 

 1.4 

 $1,077  
(includes retail) 

Leasehold

2QFY2014/15

 $320 

Leasehold

2QFY2015/16

Flamingo Valley, Singapore

33

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

Central Park, Sydney, Australia

To replenish our landbank, we 
secured an EC site in Sembawang 
with a bid of S$214 million or 
S$320 per sq ft per plot ratio (psf 
ppr). We plan to capitalise on the 
adjacent Canberra Park, with its 
facilities and views, and build 
about 670 residences. FCL has a 
20% joint venture partner, Keong 
Hong Holdings Limited, for this 
development.

OVER SEAS

Overseas developments saw an 
increase in revenue by 
S$1,010 million from S$344 million 
last year to S$1,354 million for this 
financial year. Consistent with the 
increase in revenue, PBIT from 
overseas developments saw an 
overall increase of S$201 million 
from last year. The growth was 
largely fuelled by developments 
in Australia, China and the United 
Kingdom.

34

Australia / New Zealand
We have done well in Australia this 
year, achieving sales of over  
440 units, and this does not include 
Australand. Sales comprised  
218 units at Central Park, Sydney;  
30 units at Queens Riverside, Perth; 
175 units from Putney Hill, Sydney; 
two units at Lumiere Residences, 
Sydney, and 17 land lots at Frasers 
Landing, Mandurah. We also sold 
seven land lots at Coast Papamoa 
Beach, New Zealand.

Completions in Australia this year 
contributed significantly to FCL’s 
financial performance in FY2013/14. 
Construction was completed for 
One Central Park East, Park Lane 
and The Mark at Central Park, and 
Figtree at Putney Hill in Sydney and 
QIII at Queens Riverside in Perth. 
New units at Putney Hill and Central 
Park will be launched in 2015.

Central Park, Sydney
2014 was a year of achievements for 
Central Park, our A$2 billion urban 
regeneration project in Sydney. 

The completion of One Central 
Park’s East tower along with the 
completion of the Park Lane and 
The Mark towers saw a further 
1,188 apartments delivered. Overall, 
as at 30 September 2014, 1,428 
apartments have been completed 
within Central Park with only 24 
apartments remaining unsold.

In November, One Central Park 
won international recognition 
when it was declared the “Best Tall 
Building Worldwide” by Chicago’s 
Council on Tall Buildings and Urban 
Habitat, beating 87 other worthy 
developments around the world to 
the honour.

In addition, this financial year saw 
the opening of the multi-level retail 
mall at Central Park with major 
tenants including Woolworths 
supermarket, Japanese retailer 
Daiso, Adidas, Glue, Super Dry and 
Footlocker. 

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESCentral Park, Sydney, Australia

Central Park, Sydney, Australia

Target 
completion 
date

Completed

Completed

Completed

Completed

2QFY2014/15

3QFY2015/16 

3QFY2015/16 

A$252 

A$257 

A$256 

A$29

A$29 

A$100

A$100

AUSTRALASIA:  Projects currently under development

Projects

Location

interest (%) No. of units

Effective 

% Sold @ 
30 Sep 2014

Ave. selling 
price 

Land cost 

One Central Park

Park Lane

The Mark

Queens Riverside (QIII)

Queens Riverside (QII)

Putney Hill (Stage 1)

Putney Hill (Stage 2)

Sydney

Sydney

Sydney

Perth

Perth

Sydney

Sydney

Frasers Landing

Western Australia

Coast Papamoa Beach

New Zealand

37.5

37.5

37.5

87.5

87.5

75.0

75.0

56.3

67.5

623

393

412

267

107

449

15

173

117

98.0

98.0

99.0

87.0

47.7

93.0

60.0

35.0

16.0

A$1,234 

A$1,272 

A$1,286 

A$889 

A$837 

A$642 

A$739

A$424

A$6 

1QFY2015/16

NZ$714

NZ$6

NA

AUSTRALASIA: Land bank

Land bank

One Central Park (JV)

One Central Park (Non-JV)

Frasers Landing

Putney Hill (Stage 2)

Queens Riverside (QI)

Broadview Rise

Coast Papamoa Beach

TOTAL

Location

Sydney

Sydney

Western Australia

Sydney

Perth

New Zealand

New Zealand

Effective 
interest (%)

37.5

75.0

56.3

75.0

87.5

75.0

67.5

Est. no. 
of units

1,1001

5243

418

327

126

29

303

2,827

Est. saleable 
area (’m sq ft)

Land cost 

1.02

0.3

1.6

0.3

0.1

0.1

1.89

5.29

A$163

A$163

A$6

A$100

A$30

NZ$77

NZ$6

Includes 632 student accommodation units  
Includes 0.55 million sq ft of commercial space and 0.26 million sq ft of student accommodation space 

1 
2  
3    Includes 237 student accommodation units
4   This relates to the sale of land lots 

35

ANNUAL  REPORT2014 
 
 
G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

Gemdale MegaCity
Construction continues for 
Phase 2 of Gemdale MegaCity, 
Shanghai, which is made up of  
2,199 high-rise dwelling units of 
various sizes. Phases 2A and 2B 
were launched in August and 
November 2013 respectively. 
As at the end of FY2013/14, we had 
collectively sold 1,808 (or 82.2%) 
out of 2,199 units in Phase 2, with 
sales value of over RMB 3.4 billion. 
Handover for Phase 2 is expected to 
take place in mid-2015.

China
In China, we achieved sales of over 
1,900 units for the financial year.

Suzhou Baitang 
During the year, 262 units in Phases 
1B and 2A, and the newly completed 
Phase 2B were sold while Phase 3A, 
currently under construction, saw 
sales of 252 units.

Chengdu Logistics Hub
Construction was completed for 
Phase 2, which comprises two 
tower office blocks and an ancillary 
retail block with 149 office units and 
14 retail units. 59 units were sold in 
FY2013/14.

CHINA:  Projects currently under development

Location

interest (%) No. of units

Effective 

% Sold @ 
30 Sep 14

Ave. selling 
price  
(RMB psf)

Land cost  
(RMB psf)1

100.0

100.0

100.0

100.0

80.0

45.2

45.2

100.0

426

542

538

360

163

1,065

1,134

706

98.8

96.7

98.5

46.4

64.4

78.8

85.4

35.7

1,243

1,265

1,124

1,272

846

1,539

1,792

1,297

238

236

237

237

30

174

179

237

Target
completion 
date

Completed

Completed

Completed

Completed

Completed

3QFY2014/15

4QFY2014/15

4QFY2014/15

Effective 
interest (%)

Est. no. 
of units

Est. saleable 
area (’m sq ft)

Land cost 
(RMB psf)1

100.0

45.2

80.0

1,356

3,884

5,240

637

637

5,877

2.0

4.3

6.3

2.8

2.8

9.1

237

179

36

Projects

Baitang One (P1A)

Baitang One (P1B)

Baitang One (P2A)

Baitang One (P2B)

Suzhou

Suzhou

Suzhou

Suzhou

Chengdu Logistics Hub (P2)  Chengdu

Gemdale Megacity (P2A)2

Gemdale Megacity (P2B)2

Baitang One (P3A)

Shanghai

Shanghai

Suzhou

CHINA:  Land bank

Sites

Baitang One (P3B – 3C) 

Gemdale Megacity (P3-6)2

Residential

Location

Suzhou

Shanghai

Chengdu Logistics Hub (P2A & 4)

Chengdu

Commercial

TOTAL

1  Land cost includes land use tax 
2   Gemdale MegaCity was accounted as an associate 

36

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
 
Gemdale MegaCity, Shanghai, China

37

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

COMMERCIAL 
PROPERTIES

Waterway Point, Singapore

Changi City Point, Singapore

38

CO M MERCIAL 
PROP ERTIES

Commercial Properties comprise 
the retail and office REITs and 
non-REIT retail, office and business 
space properties.

PBIT from Commercial Properties 
rose 8% year-on-year to 
S$68 million in FY2013/14 as a 
result of higher cost efficiencies 
achieved and improved occupancy 
rates for the office and business 
space portfolio. This was achieved 
despite overall revenue being 2% 
lower at S$134 million.

On the malls front, occupancy 
rates among the Group’s retail 
malls in Singapore were also 
healthy at close-to-full occupancy. 
The Centrepoint is in the midst of 
transformation with Metro taking 
over from Robinsons as the anchor 
tenant. Metro at The Centrepoint 
opened its doors in November 2014.

The Group has interests in and/or  
manages a global commercial 
portfolio of 27 retail, office 
and business space properties 
(excluding Australand) totalling a 
net lettable area of over 8.5 million 
sq ft. In Singapore, there are 13 
shopping malls marketed under 
the ‘Frasers Centrepoint Malls’ 
brand, one shopping mall each in 
China and Australia, and 12 office 
and business space properties in 
Singapore, Australia, China and 
Vietnam. 

In particular, One@Changi City, 
which is 50%-owned by the 
Group, achieved higher average 
rental rates and improved cost 
efficiency. The majority of our office 
and business space properties, 
specifically Alexandra Technopark 
and Valley Point Office Tower, also 
achieved higher rental rates and 
boasted close-to-full occupancy. 

Our REITs – FCT and Frasers 
Commercial Trust (FCOT) also did 
well, delivering record-high  
full-year distribution per unit (DPU) 
in FY2013/14. If the distributable 
income from FCOT’s Series A 
Convertible Perpetual Preferred 
Units had been excluded, income 
contribution from the REIT would 
have seen a 13% increase due 
mainly to stronger operating 
performance.

Alexandra Technopark, Singapore

39

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

RETAIL

Our portfolio of non-REIT malls 
continued to trade well. Valley 
Point Shopping Centre, a 15-year 
old development, has undergone 
upgrading works to rejuvenate the 
mall and keep it in sync with the 
surrounding developments. 

We look forward to the completion 
of construction of Waterway Point, 
a new mall with over 370,000 sq ft 
of net lettable area, at Punggol New 
Town. Waterway Point is expected 
to obtain its TOP in the second half 
of 2015. Leasing is underway with 
Uniqlo, NTUC Fairprice and Shaw 
Theatre Cinema confirmed as 
anchor tenants.

In August, we unveiled Northpoint 
City, a new integrated development 
in Yishun. The mall at Northpoint 
City will be integrated with the 
existing Northpoint Shopping 
Centre. Combined, our Northpoint 
City mall will be the largest mall 
in the north of Singapore with over 

500 retail shops. The mall will be 
integrated with a new air-conditioned 
bus interchange, have a direct 
shopping underpass link to Yishun 
MRT station, and will feature 
Nee Soon Central Community 
Club, the first community club in 
a mall, as well as a town square 
the size of ten basketball courts 
for community activities. Above 
these sits a 920-unit private 
residential development, North 
Park Residences. Once completed 
in 2018, Northpoint City will become 
the new “Heartbeat of the North”. 

Frasers Centrepoint Trust
FCT delivered another strong set of 
results for the year with new highs 
in DPU, income and NAV. Its gross 
revenue for FY2013/14 rose by 6.8% 
over the previous year to  
S$168.8 million, and net property 
income (NPI) was up 5.8%  
year-on-year to S$118.1 million.  
Its DPU for FY2013/14 was a  
record-high at 11.187  Singapore 
cents. NAV per unit of S$1.85 was 
also up from S$1.77 a year ago.

The growth in revenue and net 
property income was driven by 
Changi City Point, which was 
acquired from Ascendas Frasers 
Pte. Ltd.4 in June 2014 for  
S$305 million, as well as the rental  
step-up of current leases and better 
rental rates achieved for new and 
renewed leases. 

FCT’s overall occupancy for its 
portfolio of six malls stood at 98.9% 
as at 30 September 2014. Causeway 
Point and Northpoint registered 
occupancy of 99.8% and 99.4%, 
respectively, the highest among the 
six malls in FCT’s portfolio. For the 
full year, the portfolio achieved 6.5% 
increase in average rental for lease 
renewals, compared to 7.7% in the 
previous year.

4  Ascendas Frasers Pte. Ltd. is a 50:50  
joint venture between FCT’s sponsor, 
Frasers Centrepoint Limited, and Ascendas 
Development Pte. Ltd

Northpoint City, Singapore

40

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

China Square Central, Singapore

OFFICE  AND  BUSINESS 
SPACE

Alexandra Point and Valley Point 
Office Tower achieved occupancies 
of 100.0% and 98.0% respectively. 
Me Linh Point in Ho Chi Minh City 
had 100% occupancy while Chengdu 
Logistics Hub had 74.4% occupancy.

Piling has commenced for 
Frasers Tower, our Grade A office 
development at Cecil Street. When 
completed, it will be FCL’s largest 
office property in Singapore with 
an estimated net lettable area of 
670,000 sq ft. The development will 
have a two-storey retail podium 
and is expected to obtain its TOP in 
2018. 

Frasers Commercial Trust
FCOT hit new highs with a distributable 
income of S$57.3 million and DPU 
of 8.51 Singapore cents for the full 

year. The DPU of 8.51 Singapore 
cents marks the fifth consecutive 
year of DPU growth since the 
completion of the recapitalisation 
exercise in 2009. These were also 
the highest distributable income 
and DPU achieved since FCOT was 
listed on the SGX-ST in 2006. The 
full year NPI on a cash basis5 was 
S$88 million, a 2.4% increase 
year-on-year. Meanwhile NAV per 
unit of S$1.59 was up from S$1.57 
the previous year.

FCOT’s good performance was 
driven mainly by the properties in 
Singapore that continued to benefit 
from the positive momentum in the 
Singapore office market. Properties 
in FCOT’s portfolio enjoyed 96.5% 
average occupancy as at 
30 September 2014. China Square 
Central, especially, continues 
to reap the benefits from the 
positive effects of the China Square 

Precinct Master Plan, and asset 
enhancement initiatives that were 
completed a year ago. With the low 
passing rents of expiring leases 
in the coming year, the properties 
in Singapore are also poised to 
benefit from the continuous uptrend 
in rentals for the Singapore office 
space. 

Similarly, following the expiry of 
the master lease at Alexandra 
Technopark, there will be a 
significant uplift in income for 
Alexandra Technopark. The property 
is poised to capture the potential 
upside in rentals given the lack of 
new supply of independent  
high-specs space in the Alexandra 
Precinct and the low passing rents 
of expiring underlying leases in 
FY2014/15. 

5  Excluding the effects of recognising accounting 

income on a straight line basis

41

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

COMMERCIAL PORTFOLIO

Properties
SINGAPORE: REIT (Frasers Centrepoint Trust)
Anchorpoint
Bedok Point 
Causeway Point
Northpoint 
YewTee Point 
Changi City Point

SINGAPORE: Non-REIT retail assets

Compass Point
Eastpoint Mall
Robertson Walk
The Centrepoint
Valley Point (Retail)2
Waterway Point3
Northpoint City (Retail)3

OVERSEAS:  Non-REIT retail assets
China, Beijing - Crosspoint (classified as held for sale)
Australia, Sydney - Central (classified as held for sale)
Total RETAIL

SINGAPORE: REIT (Frasers Commercial Trust)
55 Market Street
Alexandra Technopark
China Square Central

SINGAPORE: Non-REIT office/business park assets
Alexandra Point
Valley Point Office Tower
ONE@Changi City (Office)
51 Cuppage Road 
Frasers Tower3

OVERSEAS:  REIT (Frasers Commercial Trust)
Australia, Canberra - Caroline Chisholm Centre
Australia, Perth - Central Park

OVERSEAS: Non-REIT office/business park assets
China, Chengdu - Chengdu Logistics Hub  
(classified as held for sale)
Vietnam, Ho Chi Minh City - Me Linh Point
Total OFFICE/BUSINESS PARK

Australia, Australand Group
Total COMMERCIAL PROPERTIES

Effective 
interest at  
30 Sep 14 (%)

Book value
(S$’m)

Net lettable 
area  
(sq ft)

Occupancy

FY2014 (%) 

FY2013 (%)   

41.2
41.2
41.2
41.2
41.2
41.2

19.0
0.0
100.0
100.0
100.0
33.3
100.0

100.0
37.5

27.6
27.6
27.6

100.0
100.0
50.0
100.0
100.0

27.6
13.8

80.0
75.0

100.0

93 
120 
1,058 
655 
168 
306 

540 
NA
115 
646 
44 
782 
NA4

 70,989 
 82,713 
 416,581 
 235,850 
 73,670 
 207,239 

 266,586 
 214,161
 97,044 
 335,080
 29,234 
 371,000 
 330,000 

53
138 
4,718 

 156,336 
 143,129 
 3,029,612

134 
503 
579 

289 
251 
300
400 
974 

 71,796 
 1,045,227 
 372,452 

 199,380 
 183,109 
 657,648 
 276,439 
 670,000

97.8
98.2
99.8
99.4
96.6
97.9

98.9
NA
100.0
61.4
81.2
NA
NA

98.0
72.0

100.05
96.96
98.8

100.0
98.0
94.1
61.2
NA

233 
7518 

 433,182 
 713,6808 

100.0
88.6

$82 
$50 
4,546 

 703,981 
 188,896 
5,515,790

74.4
100.0

96.9
96.7
99.5
99.3
92.7
97.91

100.0
NA
98.5
97.7
100.0
NA
NA

92.0
NA

100.0
100.07
93.5

100.0
91.0
91.0
74.0
NA

100.0
93.5

78.0
100.0

2,766
12,030 

 12,774,103
21,319,505

94.5

95.39

1  Prior to the divestment to FCT on 16 June 2014
2    Undergoing asset enhancement 
3   Currently under development 
4   The land acquisition is pending completion 
5   Based on the committed occupancy as at 30 September 2014  
6   Based on the underlying leases of Alexandra Technopark. On 25 August 2014, the master lease with Orrick Investments Pte Ltd expired and 

was not renewed  

7   Based on the master lease at Alexandra Technopark 
8    Represents 100% indirect interest in the asset. FCOT only has 50% indirect interest in the asset
9  Prior to the acquistion of Australand 

42

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B U S I N E S S   R E V I E W

C H A N G I   C I T Y   P O I N T

S I N G A P O R E

43

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

HOSPITALITY

Fraser Suites, New Delhi, India

Fraser Suites, Sydney, Australia

Modena by Fraser, Wuhan, China

44

HOSPITALITY

FCL’s Hospitality segment delivered 
strong operational performance 
throughout the year, with revenue 
climbing 46% compared to last year. 

The Group acquired operating 
companies that are the master 
lessees for six hotels owned by 
Frasers Hospitality Trust (FHT), 
resulting in a new stream of 
revenue to the Group. Revenue 
was also higher on the back of 
improved occupancies, particularly 
at Fraser Suites Queens Gate, 
United Kingdom, Fraser Place 
Melbourne and Fraser Suites Perth, 
Australia. These increases partially 
offset the reduced contributions 
resulting from the divestment of six 
serviced residences into FHT and 
stiff competition in the Singapore 
market.

GROWING O UR  H O SPITAL IT Y 
PORT FOLIO

Over the financial year, Frasers 
Hospitality grew its portfolio 
through acquisitions in Europe 

and Australia and new sign-ups 
across Europe, North Asia and 
South-East Asia, including the asset 
management of newly acquired 
436-room Sofitel Wentworth Sydney, 
an iconic fixture in the downtown 
Sydney skyline. In April, Frasers 
Hospitality’s second property in 
Jakarta, Fraser Residence Menteng 
Jakarta was opened.

Frasers Hospitality’s European 
portfolio was further augmented 
by the acquisition of properties in 
Frankfurt, Germany and Barcelona, 
Spain, both to be branded Capri by 
Fraser, and one in Berlin, Germany 
which will be branded Fraser 
Place Berlin. The Fraser-branded 
properties in the UK also enjoyed 
strong occupancies, benefitting 
from the Commonwealth Games 
earlier this year.

has also exceeded its occupancy 
targets. This has resulted in the 
growth of the brand through 
both management contracts and 
acquisitions, with Capri by Fraser 
Barcelona, Spain, Capri by Fraser, 
Brisbane, Australia and Capri by 
Fraser, Frankfurt, Germany slated 
to open in 2015.

In addition, our hospitality division 
deepened its presence in China’s 
second tier cities with new sign-ups 
for Fraser Place Nanchang, Fraser 
Residence Chengdu, Fraser Suites 
Kunming, Fraser Suites Tianjin, 
Fraser Suites Hefei as well as the 
recent openings of Modena by 
Fraser Wuxi and Modena by Fraser 
Wuhan. We will also be adding 
another two managed properties in 
Bangkok, Thailand to our hospitality 
portfolio. 

The Capri by Fraser brand, with 
its design-led concept, has been 
positively received as evidenced by 
the strong occupancies in Capri by 
Fraser, Changi City, Singapore and 
Capri by Fraser, Ho Chi Minh City, 
Vietnam. The recently opened Capri 
by Fraser, Kuala Lumpur, Malaysia 

As at 30 September 2014, Frasers 
Hospitality has interest in and/or  
manages over 11,000 serviced 
apartments/hotel rooms in more 
than 35 cities and has signed up 
over 7,700 units that are expected to 
progressively begin operations from 
2015 onwards.

Capri by Fraser, Kuala Lumpur, Malaysia

45

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

G R O U P   C E O

B U S I N E S S   R E V I E W

Sofitel Sydney Wentworth, Sydney, Australia

SERVICED RESIDENCES - Owned Properties

Country

Property

Australia

Fraser Suites Perth

Fraser Place 
Melbourne

Sofitel Sydney 
Wentworth

Capri by Fraser, 
Brisbane

Fraser Suites Beijing

Fraser Residence 
Sudirman Jakarta

Fraser Suites 
Kensington

China

Indonesia

London

Philippines

Fraser Place Manila

Spain

Singapore

Capri by Fraser, 
Barcelona

Capri by Fraser,  
Changi City

Fraser Place 
Singapore

Effective 
interest (%) 

No. of
units

Occupancy
FY2014 (%) FY2013 (%)

Average daily rate

FY2014

FY2013

Book value 
at 30 Sep 14

87.5

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

50.0

100.0

236

112

436

239

357

108

70

89

97

313

163

86.9

91.1

87.2

NA

84.1

83.6

81.6

87.3

70.0

83.3

69.8

65.0

75.0

NA

NA

82.0

93.0

84.0

86.0

NA

77.0

76.0

A$288.0

A$138.7

A$322.0

NA

A$270.6

A$142.4

NA

NA

A$124.6m

A$29.0m

A$200.0m

A$54.0m

RMB831.3

RMB841.8

RMB1,183.0m

US$142.3

US$134.4

US$33.9m

£268.1

£252.5

£109.2m

PHP7,131.5
€115.5

PHP7,117.4

NA

PHP1,256.0m
€15.5m

$257.5

$248.4

$97.4m

$382.3

$366.4

$210.0m

Total number of rooms owned

2,220

46

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

B E S T   W E S T E R N   C R O M W E L L

L O N D O N ,   U N I T E D   K I N G D O M

G R O U P   C E O

B U S I N E S S   R E V I E W

47

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

SERVICED RESIDENCES - Under Management

Country

Bahrain

China

France

Hungary

Indonesia

India

Japan

UK

Malaysia

Qatar

Singapore

Property

Fraser Suites Bahrain

Fraser Place Shekou, Shenzhen

Fraser Residence Shanghai

Fraser Suites Shanghai

Fraser Residence CBD East, Beijing

Fraser Suites Nanjing

Modena by Fraser Shanghai Putuo   

Modena by Fraser Heping Tianjin

Fraser Suites Chengdu

Fraser Suites Suzhou

Modena by Fraser Jinjihu Suzhou

Fraser Suites Guangzhou

Modena by Fraser Wuxi New District

Modena by Fraser Wuhan

Fraser Suites Harmonie, Paris

Fraser Suites Le Claridge, Paris

Fraser Residence Budapest

Fraser Residence Menteng, Jakarta

Fraser Suites New Delhi

Fraser Residence Nankai Osaka

Fraser Residence Prince of Wales, London

Fraser Residence Bishopgate, London

Fraser Residence Blackfriars, London

Fraser Residence Monument, London

Fraser Residence City, London

Fraser Place Kuala Lumpur

Capri by Fraser, Kuala Lumpur 

Fraser Suites Doha

Fraser Place Fusionopolis

Fraser Residence Orchard

South Korea

Fraser Suites Insadong, Seoul

Thailand

Turkey

UAE

Vietnam

Fraser Place Central, Seoul

Fraser Place Nandaemum, Seoul

Fraser Suites Sukhumvit, Bangkok

Fraser Place Anthill Istanbul

Fraser Suites Dubai

Fraser Suites Hanoi

Capri by Fraser, Ho Chi Minh City  

No. of units

91

232

324

186

228

210

348

104

360

276

237

332

120

170

134

110

51

128

92

114

18

26

12

14

22

315

240

138

50

72

213

254

252

163

116

180

185

175

Total number of rooms (under management)

6,292

48

Capri by Fraser, Barcelona, Spain

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

Fraser Residence Menteng, Jakarta, Indonesia

Capri by Fraser, Barcelona, Spain

Modena by Fraser, Wuxi, China

49

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

FRAS ER S HOS PITALITY  T RUS T

FHT is Singapore’s first global hotel 
and serviced residence hospitality 
trust to be listed on the Main 
Board of the SGX-ST. FHT offers 
investors an opportunity to invest 
in a geographically diversified and 
balanced portfolio of quality assets 
to take advantage of favourable 
hospitality sector fundamentals of 
the key gateway cities in which the 
assets are located. 

The REIT’s balanced and 
well-diversified initial portfolio 
comprises six hotels and six serviced 
residences. Valued at approximately 
S$1.7 billion6, FHT’s initial portfolio 
of properties collectively has 1,928 
hotel rooms and 842 serviced 
residence units, and total gross floor 
area of approximately 3.8 million sq 
ft. Each of these quality assets is 
located in prime locations within key 
gateway cities, and is managed by 
globally renowned hotel and serviced 
residence operators including the 
award-winning Frasers Hospitality 
Pte Ltd.

Fraser Suites Glasgow, Scotland

In line with the growth of Frasers 
Hospitality division, FHT is 
well-positioned to grow through 
both organic and inorganic 
opportunities with further 
expansion supported by a robust 
pipeline of right-of-first-refusal 
properties located across ten 
countries, granted by FCL and 
strategic partner, the TCC Group.

6  The Initial Portfolio is valued at approximately 
S$1,666.5 million, based on the higher of 
the two independent appraisal values for the 
Properties and exchange rates as at 27 June 
2014. The appraisal values of the Properties 
are as at 31 March 2014 for Novotel Rockford 
Darling Harbour and Fraser Suites Sydney 
and as at 31 December 2013 for the remaining 
Properties.

SERVICED RESIDENCES - Held Through Frasers Hospitality Trust

City

Singapore

Property

InterContinental Singapore

Fraser Suites Singapore

Kuala Lumpur

The Westin Kuala Lumpur

Kobe

Sydney

Glasgow

Edinburgh

London

Ana Crowne Plaza Kobe

Fraser Suites Sydney

Novotel Rockford Darling Harbour

Fraser Suites Glasgow

Fraser Suites Edinburgh

Fraser Suites Queens Gate, London

Best Western Cromwell London

Park International London

Fraser Place Canary Wharf, London

Effective 
interest (%)

No. of units

22.0

22.0

22.0

22.0

22.0

22.0

22.0

22.0

22.0

22.0

22.0

22.0

406

255

443

593

201

230

98

75

105

85

171

108

Book value 
as at 14 Jul 14

$497.1m

$327.0m

MYR455.0m

¥11,200.0m

A$103.5m

A$66.0m

£7.5m

£11.5m

£46.3m

£17.0m

£39.3m

£31.5m

Total number of rooms owned & managed

 2,770 

50

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

AUSTRALAND

Freshwater Place, Melbourne, Australia

Coles Parkinson, Queensland, Australia

Clemton Park Village, Sydney, Australia 

51

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

Discovery Point, Sydney, Australia

including 16 at Greenvale, 14 at 
Clyde North, 11 at Croydon and 
13 at Cranbourne; in Queensland, 
Hamilton Reach sold 21 apartments 
and on the Gold Coast COVA sold 16 
town houses; and in Perth, Western 
Australia our joint-venture  
master-planned land project at 
Baldavis East sold 15 lots.

As at 30 September 2014, 
Australand’s Residential Division 
had contracts on hand of 
S$1.7 billion and a development 
pipeline with estimated gross 
development value of S$10.4 billion.

AUSTRALAND

Australand became a member of 
the Group after the share transfer 
was completed on 29 August 2014. 
Australand is one of Australia’s 
leading diversified property 
groups and has been involved in 
property development for more 
than 90 years. Its operations, which 
include development of residential 
land, housing and apartments, 
development of, and investment in 
income producing commercial and 
industrial properties, and property 
management, are located in Sydney, 
Melbourne, South-East Queensland, 
Adelaide and Perth. 

In the one month that Australand 
was a member of the Group, 
Australand contributed revenue of 
S$47 million and PBIT of 
S$6 million. 

RESID ENTIAL  PRO PERT IES

Australand is one of the top five 
residential developers in Australia 
with a pipeline of more than 20,000 
lots to be developed over the next 
five to seven years. Almost 
two-thirds of the pipeline is in 
the form of master-planned 
residential land projects and the 
remainder medium-density urban 
infill projects in Australia’s largest 
population centres – Sydney, 
Melbourne, South-East Queensland 
and Perth. 

In Australand’s one month as 
part of the Group, 225 sales were 
achieved across an active portfolio 
of 41 projects worth S$110.4 million. 
Highlights for the month included 
the sale of 33 apartments at 
Discovery Point, Sydney and  
34 low-rise apartments at Clemton 
Park, also in Sydney; in Victoria, 
20 apartments sold at Parkville, 
Melbourne and four master-planned 
land projects contributed 54 sales 

52

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

COM ME RCIAL AND 
INDUST RIAL PR OPE RT IES

Australand’s Commercial and 
Industrial (C&I) development 
division controls 25.9 million sq ft 
of industrial developable land and 
1.1 million sq ft of future office 
development. The division has an 

integrated development platform 
providing end-to-end capabilities, 
and is a market leader in the 
Australian industrial sector. The 
C&I division has a solid forward 
workload of 2.0 million sq ft across 
15 projects, mainly located along 
the eastern seaboard with Sydney 
and Melbourne generating the bulk 

of activity. As at 30 September 2014, 
the C&I division had a development 
pipeline with an estimated gross 
development value of S$2.0 billion.

AUSTRALAND:  Land bank

Country

Site2

Australia (Australand - Residential)

Beveridge - L, VIC

Clyde North - L, VIC

Wallan - L, VIC

Shell Cove - L, NSW

Yanchep - L, WA

East Baldivis - L, WA

Burwood East - H/MD, VIC

Ashlar - L and H/MD, NSW

Discovery Point - HD, NSW

Point Cook - L, VIC

Parkville - H/MD, VIC

Cockburn Central - H/MD, WA

Hamilton - H/MD, QLD

Botany - H/MD, NSW

Sunbury - L, VIC

North Ryde - H/MD, NSW

Hope Island - L and H/MD, QLD

Park Ridge - L, QLD

West Baldivis - L, WA

Carlton - H/MD, VIC

Greenvale - L, VIC

Port Coogee - L, WA

Westmeadows - H/MD, VIC

Clemton Park - H/MD, NSW

Cranbourne West - L, VIC

Avondale Heights - H/MD, VIC

Discovery Point - HD, NSW

Croydon - L, VIC

Lidcombe - H/MD, NSW

Sunshine - H/MD, VIC

Port Coogee - L, WA

Ivadale Lakes - L, QLD

Includes 100% of joint arrangements (Joint operation-JO and Joint venture-JV) and PDAs

1  
2   L - Land, H/MD - Housing / medium density, HD - High density

Effective 
interest (%)

Est total 
no. of lots1

Est.  
saleable area 
(’m sq ft)

50.0

50.0

50.0

50.0

Mgt rights

50.0

100.0

100.0

100.0

50.0

50.0

100.0

100.0

100.0

100.0

50.0

100.0

100.0

100.0

65.0

100.0

100.0

100.0

50.0

100.0

100.0

50.0

50.0

100.0

50.0

50.0

100.0

3,800

2,145

1,270

1,019

1,000

935

790

779

660

601

559

464

460

445

391

374

373

371

363

349

319

290

202

182

153

135

97

89

80

78

88

50

NA

NA

NA

NA

NA

NA

1

NA

0.5

NA

0.4

0.2

0.4

0.4

NA

0.3

NA

NA

NA

0.2

NA

NA

0.7

0.8

NA

0.2

0.1

NA

0.1

0.3

NA

NA

53

ANNUAL  REPORT2014G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

Some of the division’s current 
projects include a 484,376 sq ft 
distribution centre at Eastern Creek, 
New South Wales (NSW), which 
upon completion will be leased to 
TTi Logistics for seven years; 
a 176,270-sq-ft Distribution Centre 
at Eastern Creek, NSW which 
upon completion will be leased to 
Fisher & Paykel for ten years; a 
411,450-sq-ft industrial facility at 
Truganina, Victoria which will be 
leased in part to MaxiPARTS; and a 
178,175-sq-ft office and warehouse 
facility at Winston Hills, NSW 
leased to Toshiba for 15 years and 
Australian Geographic for ten years.

INV ES TM ENT PROPE RTI ES

The S$2.8-billion Australand 
Investment Property portfolio 
comprises prime commercial and 
industrial assets predominantly 
located along Australia’s eastern 
seaboard. The portfolio has been 
primarily internally developed by 
Australand’s C&I division and is 
weighted 51% industrial and 49% 
commercial. The portfolio tenancy 
profile is of a high quality with 
86% of income sourced from  
ASX-listed companies, federal and 
state governments and multi-national 
corporations. Occupancy is at 94.5% 
with an average weighted average 
lease to expire (WALE) of 5.1 years. 

The average commercial portfolio 
NABERS sustainability rating is  
4.47 stars, which is above 
Australand’s industry peers.

Some of the recent activities within 
the Investment Property portfolio 
included the lease renewal of SP 
Services at 2 Southbank Boulevard, 
Southbank, Victoria of over 
87,285 sq ft; a new ten-year 
lease plus building extension 
at Dandenong South, Victoria 
of an over 279,862-sq-ft (upon 
completion) facility leased to 
Danks (a division of Woolworths); 
and a five-year lease renewal with 
Tyres 4 You at 150 Atlantic Drive, 
Keysborough, Victoria.

Site

Truganina, VIC

Yatala, QLD

Keysborough, VIC

Western Sydney Parklands Trust, NSW

Burbridge Business Park, SA

Eastern Creek, NSW

Eastern Creek, NSW

Pinkenba, QLD

Effective 
interest (%)

100.0

50.0

100.0

PDA1

50.0

100.0

50.0

100.0

Berrinba (Crestmead), QLD

Option

Beverley, SA

Derrimut, VIC

Berrinba, QLD

Parkinson, QLD

Rowville, VIC

Winston Hills, NSW

Pinkenba, QLD

Mulgrave, VIC

Richlands, QLD

Macquarie Park, NSW

Altona, VIC

Gillman, SA

Berwick, VIC

100.0

100.0

100.0

50.0

100.0

100.0

50.0

50.0

100.0

50.0

100.0

50.0

100.0

Est.  
saleable area 
(’m sq ft)

5.4

3.9

4.6

2.1

1.7

1.7

1.2

0.9

0.7

0.4

0.4

0.4

0.3

0.3

0.3

0.3

0.3

0.2

0.2

0.2

0.2

0.1

Type

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Industrial

Office

Industrial

Office

Industrial

Industrial

Industrial

AUSTRALAND:  Land bank

Country

Australia (Australand - C&I)

1  Project development agreement

54

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

P O R T   C O O G E E

W E S T E R N   A U S T R A L I A

55

G R O U P   C E O ’ S

B U S I N E S S   R E V I E W

over 7,700 signed-up serviced 
apartments pending openings 
are expected to progressively 
commence operations from 2015 
onwards. The Group will continue 
to strive towards its target of 30,000 
serviced apartments/hotel rooms 
under management by 2019.

I see FY2013/14 as a milestone year 
for FCL in achieving a new level 
of growth, and we look forward to 
exciting years ahead as we continue 
to execute on our growth strategies.

Northpoint City, Singapore

LOOK ING AH EAD

Australia is a core market for FCL 
where the Group sees exciting 
prospects for sustainable growth. 
With the acquisition of Australand, 
FCL has a platform that takes our 
Australian business to the next 
level in every way, from the scale 
of operations, to scope of activities, 
to the Group’s ability to compete 
and more importantly, our ability to 
attract and retain the best people. 
Having the right organisational 
structure and management team 
in place is critical to achieving 
the Group’s growth ambitions in 
Australia. On 3 November 2014, 
FCL announced that Bob Johnston, 
Managing Director of Australand, 
will lead the Group’s combined 
business in Australia. 

56

On the development front in 
Singapore, the progress of 
Northpoint City is on track with 
construction expected to commence 
in FY2014/15. Meanwhile in our 
overseas markets, there are 
numerous scheduled completions 
in Australand’s development 
portfolio in FY2014/15. The Group’s 
unrecognised development revenue 
totalled S$3.9 billion at the end 
of FY2013/14. This unrecognised 
development revenue, as well as 
scheduled completions from its core 
overseas markets, will continue 
to support FCL’s development 
properties business.

On the hospitality front, the Group 
has increased its portfolio to over 
11,000 serviced apartments/hotel 
rooms under management in 
more than 35 cities, following the 
launch of new properties in China, 
Indonesia and Malaysia, as well 
as the listing of FHT. In addition, 

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESB U S I N E S S   R E V I E W

F R A S E R   R E S I D E N C E

K U A L A   L U M P U R ,   M A L A Y S I A

57

I N V E S T O R

R E L A T I O N S

During the year, we also extended 
our REIT strategy through the 
listing of Frasers Hospitality 
Trust, as well as strengthened 
our position in Australia, a core 
market for FCL, through the 
acquisition of Australand Property 
Group. Throughout these two 
developments, we provided 
timely and accurate disclosures 
and updates via announcements 
on SGXNet. Where appropriate, 
we also supplemented the 
announcements with press releases 
and presentations to enhance 
understanding of the developments. 

Both these developments had 
elements that were subject to 
shareholders’ approvals. We 
despatched the relevant notices 
and circulars to shareholders 
within the requisite period of time 
before the respective extraordinary 
general meeting (EGM) to provide 
shareholders with adequate time 
to read the materials and consider 
the developments. The EGMs were 
well-attended by shareholders, who 
were able to speak with the Board of 
Directors, including the Chairman. 

PR OACTI VE A ND REGUL AR 
EN GAGEM ENT

As part of our ongoing regular 
updates on our business, we 
announce our financial performance 
on SGXNet every quarter, along with 
a press release and presentation. 
We also host quarterly conference 
calls, during which members of our 
senior management team present 
highlights of our financial results 
and answer questions posed by 
analysts and institutional investors. 
We also host in-person briefings on 

our half-year and full-year results, 
which are attended by analysts, 
institutional investors and the 
media. A concurrent dial-in facility 
is also offered for those who wish to 
attend the briefing, but are unable 
to do so in person.

All the materials related to FCL’s 
quarterly announcements on our 
financial performance, as well as a 
webcast of the FY2013/14 full-year 
results presentation, are publicly 
available via FCL’s corporate 
website (fraserscentrepoint.com). 
The website serves as a resource 
centre from which the public can 
access information about FCL. In 
addition to the aforementioned 
resources, the website also contains 
fact sheets about FCL, and provides 
more insighs into our business and 
properties.

In addition, over the course of 
the year, FCL participated in 
149 meetings with analysts and 
institutional investors to facilitate 
understanding of our activities and 
growth plans. 

For enquiries on Frasers 
Centrepoint Limited, please 
contact:
Ms Gerry Wong
Head, Group Communications
Tel: (65) 6276 4882
Email: ir@fraserscentrepoint.com

OVER VI EW

FCL’s investor relations (IR) team is 
focussed on proactively engaging 
the financial and investment 
community as well as the media 
to generate awareness and 
understanding of FCL’s business 
model, competitive strengths, 
growth strategy, and investment 
merits; as well as garner feedback 
for consideration. 

The senior management and IR 
teams regularly engage these 
stakeholders through multiple 
platforms. These include 
one-on-one meetings, results 
calls and briefings, post-results 
luncheons, non-deal roadshows 
and conferences. In addition, we 
organise site visits to our properties 
to help stakeholders better 
understand our business.

Recognising our commitment 
to corporate transparency, the 
Securities Investors Association 
(Singapore) conferred FCL the Most 
Transparent Company Award 2014, 
in the New Issues category, at the 
15th Investors’ Choice Awards.

FOCUSSED O N C OR POR AT E 
TRANS PARE NCY

FY2013/14 was an eventful year 
for FCL, with a number of major 
corporate developments. To begin 
with, we were demerged from 
our previous parent company 
Fraser and Neave, Limited, and 
independently listed on 9 January 
2014. Believing in the importance 
of being transparent with our new 
direct shareholders, we voluntarily 
prepared a comprehensive 
annual report for FY2012/13, the 
last financial year before our 
independent listing, and published it 
on 8 January 2014.

58

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESFCL’S CLOSING PRICE AND TRADING VOLUME IN FY2013/14

FCL SP Equity - Last Price   1.700
1.975
High on 05/22/14 
Average 
1.679
1.400
Low on 02/10/14 

FCL SP Equity - Volume  
High on 09/19/14 
Average 
Low on 06/19/14 

0.055m
6.311m
0.780m
61000

JAN 15 

JAN 30 

FEB 14 

FEB 28  MAR 14 

MAR 31 

APR 15 

APR 30  MAY 15 

MAY 30 

JUN 16 

JUN 30 

JUL 15 

JUL 31 

AUG 15 

AUG 15 

SEP 15 

SEP 30

BROKERAGES COVERING FCL 
(AS OF 30 SEPTEMBER 2014)

FY2013/14 INVESTOR RELATIONS 
CALENDAR

1.  Bank of America Merrill Lynch
2.  CIMB Research
3.  CLSA 
4.  Daiwa Capital Markets
5.  DBS Bank

Jan 14 
Feb 14 
Feb 14 

Listing on SGX-ST Main Board
Release of 1Q FY2013/14 results
Investor meetings in Singapore, Kuala 
Lumpur and Hong Kong

Mar 14  Daiwa Investment Conference Tokyo 2014
May 14  Release of 2Q FY2013/14 results
Investor meetings in Singapore, 
May 14 
Amsterdam, Edinburgh and London
Citi Asia Pacific Property Conference 2014, 
Hong Kong

Jun 14 

Aug 14  Release of 3Q FY2013/14 results
Sep 14 

Investor meetings in Singapore

2.000

1.900

1.800

1.700

1.600

1.500

1.400

6M

4M

2M

59

ANNUAL  REPORT2014T R E A S U R Y

H I G H L I G H T S

The Group aims to maintain a prudent and efficient 
financial structure to ensure that it will be able 
to access adequate capital at favourable terms. 
Our newly acquired subsidiary Australand and our 
three main businesses, Development Properties, 
Commercial (Retail and Office), Hospitality and the 
Asset Management of the three REITs generates cash 
flows for the Group in Singapore and over 35 cities 
around the world. Management monitors the Group’s 
cash flow position, debt maturity profile, funding cost, 
interest rate exposures and overall liquidity position 
on a continuous basis. To ensure that the Group has 
adequate overall liquidity to finance its operations 
and investment requirements, the Group maintains 
available banking facilities with a large number of 
banks globally. The Group also taps the debt capital 
markets through its Medium Term Notes (MTN) 
programmes. In September 2014, the Group raised 
S$600 million in Perpetual Hybrid Securities that was 
non-callable until year 5 with interest step up in Year 
10. In October 2014, the Group issued S$200 million of 
seven-year 3.95% fixed-rate notes.

In FY2013/14, the Group improved its capital position  
(net worth increased 29% from S$5,451 million to 
S$7,033 million) and cash balance (from S$507 million  
to S$884 million). The capital position was improved from 
S$670 million of capital infusion from Fraser and Neave, 
Limited prior to the FCL listing in January 2014,  
the issuance of Perpetual Securities of S$600 million  
in September 2014 and retained earnings for the year. 
Net Group Borrowings had increased from  
S$3.145 billion to S$6.733 billion during the year with 
the incremental addition of Australand’s debt and the 
acquisition financing for Australand (S$1.8 billion). The 
increased cash balance was attributed to cash collection 
from the strong pipeline of pre-sold development 
projects in Singapore and overseas, stable cash 
flow generated from investment properties and the 
monetisation of assets. 

Interest cost in FY2013/14 was S$94 million (of which 
S$51 million was capitalised), 36.9% lower than the 
previous year’s interest cost of S$149 million (of which 
S$70 million was capitalised) mainly due to a higher 
proportion of floating rate debt.

SOURC E OF FUNDI NG

Besides cash flow from our businesses, the Group also 
relies on the debt capital markets, equity markets and 
bilateral banking facilities for its funding. As at 
30 September 2014, the Group has S$2.1 billion in 
banking facilities and S$2.3 billion in MTN programme 
that may be used/issued to meet the funding 
requirements of the Group. 

AVAI LA B LE B ANK  LI NE S B Y B ANKS  A S AT 
30 SEPTEM BER 2014

The Group maintains an active relationship with a 
network of more than 25 banks globally, located in 
various countries where the Group operates. Our 
principal bankers include Australia and New Zealand 
Banking Group Limited, DBS Bank Ltd, National 
Australia Bank Limited, Oversea-Chinese Banking 
Corporation Limited, Standard Chartered Bank, 
Sumitomo Mitsui Banking Corporation, United Overseas 
Bank Limited and Westpac Banking Corporation. 

The Group continues to adopt the philosophy of 
engaging the banks as our core business partners. 
We continue to receive very strong support from our 
relationship banks across all segments of the Group’s 
businesses. Total banking facilities (utilised and 
unutilised) extended to the Group as at 30 September 
2014 amounted to S$11 billion. The principal bankers 
of the Group provided 83% of these banking facilities. 
All banking relationships for the entire Group are 
maintained by Corporate Treasury in Singapore.

D EBT CA PI TA L  MARKE TS

The Group has various MTN programmes in place to tap 
the debt capital market. FCL Treasury Pte Ltd has an 
updated S$3 billion MTN programme. Our associates, 
Frasers Centrepoint Trust and Frasers Commercial 
Trust each has a S$1 billion MTN programme. 

60

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
DEBT MATURITY PROFILE (S$m) 

GEA RING A ND  INTERE ST COVER

1,920

1,595

1,494

1,318

1,212

2,500

2,000

1,500

1,000

500

< 1 Yr 

1 to 2 Yrs  2 to 3 Yrs  3 to 4 Yrs  4 to 5 Yrs 

> 5 Yrs  

Average Maturity – 2.8 years 

77

INT ER EST RATE PR OF ILE AND  DE R IVAT IV ES

The Group manages its interest cost by maintaining a 
prudent mix of fixed and floating rate borrowings. On 
a portfolio basis, 35% of the Group’s borrowings are in 
fixed rates (including floating rate borrowings that have 
been fixed with interest rate swaps) with an average 
fixed rate tenor of 3.5 years as at 30 September 2014. 
The remaining 65% of the Group’s borrowings are in 
floating rates as at 30 September 2014. The floating 
rate loan portfolio allows the Group to maintain a 
flexible maturity profile to support divestments and 
cash inflows from sales of development property where 
debt can be reduced quickly.

In managing the interest rate profile, the Group takes 
into account the interest rate outlook, expected cash 
flow generated from its business operations, holding 
period of long-term investments and any acquisition 
and divestments plans.

The Group makes use of interest rate derivatives for the 
purpose of hedging interest rate risks and managing 
its portfolio of fixed and floating rate borrowings. 
The Group does not engage in trading in interest rate 
derivatives. The Group’s total interest rate derivatives 
and the mark-to-market values as at 30 September 
2014 are disclosed in the financial statement in Note 37.

The Group aims to keep the Group’s net gearing to 
equity at 80% to 100%. As at 30 September 2014, this 
ratio was 95%. Total interest paid during the year 
amounted to S$94 million, of which S$51 million was 
capitalised as part of Properties Under Development. 
The net interest charged to profit statement for the 
year was S$43 million and the net interest cover over 
earnings before interest and tax was at 16 times. 

FOREI GN EXCHA NGE RISKS A ND  D ERI VATIVES

The Group has exposure to foreign exchange risk 
as a result of transactions denominated in foreign 
currencies, arising from normal trading and investment 
activities. Where exposures are certain, it is the Group’s 
policy to hedge these risks as they arise. The Group 
uses foreign currency forward exchange contracts and 
certain currency derivatives to manage these foreign 
exchange risks.

The Group does not engage in trading of foreign 
exchange and foreign exchange derivatives. The Group 
uses foreign exchange contracts and derivatives 
solely for hedging actual underlying foreign exchange 
requirements in accordance with hedging limits set by 
the Audit Committee and the Board under the Group 
Treasury Policy. These policies are reviewed regularly 
by the Audit and Executive Committees to ensure that 
the Group’s policies and guidelines are in line with the 
Group’s foreign exchange risk management objectives.

The Group’s foreign exchange contracts and derivatives 
and the mark-to-market values as at 30 September 
2014 are disclosed in the financial statement in Note 37.

The Group does not hedge its foreign exchange risks of 
its investments in overseas subsidiary, joint-venture and 
associated companies. Such investments are long term 
in nature and therefore not feasible and economical to 
hedge. The Group only hedges the dividends cash flows 
payable from its overseas subsidiary, joint-venture and 
associated companies.

61

ANNUAL  REPORT2014 
C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

O NE  W I TH THE 
CO M MUNITY

FCL and the communities in which 
we exist are intrinsically interwoven. 
People are at the heart of every 
property we build and manage; 
and each property is designed to 
enhance the lives of the people who 
live, work, play and shop there. 
Beyond that, we contribute to these 
communities in myriad ways – from 
providing financial aid and spending 
time with the underprivileged to 
offering our property spaces for art, 
education and charitable events.

In addition, we participated in 
Project Green Malls @ North East, 
where we organised activities 
such as interactive exhibits and 
eco-green workshops to raise 
awareness and get the community 
involved in owning and caring for 
our environment.

Open House Perth was once again 
held at Central Park and opened its 
doors to various tour groups who 
were given a brief on the design 
and architectural features of the 
building and shown various facilities 
such as the Ride & Park facility and 
the conference centre.

EDUCAT ION

To promote social entrepreneurship, 
Frasers Centrepoint Malls 
collaborated with Ngee Ann 
Polytechnic Business Studies’ 
final-year Entrepreneurship 
students for the sixth year to 
organise the National Youth 
Business Challenge (NYBC). Held 
on 5 and 6 July 2014, NYBC saw 
students come together to propose 
earth-friendly business ideas. 

We also hosted a series of 
educational exhibitions at our 
properties. Trading Stories, at 
China Square Central, featured the 
experiences and personal stories 
of six tradespeople who plied old 
trades in Singapore. Universal 
Design Exhibition, at Changi City 
Point, was a collaboration with the 
Building and Construction Authority 
to promote green buildings to 
students and get Singapore’s 
future generations to appreciate 
the benefits of and pledge their 
support for universal design in 
their built environment. Health 
Promotion Board and Singapore 
Heart Foundation also held 
exhibitions at Changi City Point 
to promote healthy living and to 
raise awareness of cardiovascular 
disease respectively. 

62

In Sydney, we sponsored the  
Putney Primary School fete and  
St Charles Catholic Primary 
School’s fundraising initiative.

T HE  ARTS

Frasers Hospitality provided close to 
$300,000-worth of accommodation 
for performing arts groups for a 
number of productions, including 
KidsFest 2014, Shakespeare in the 
Park – The Merchant of Venice, 
Jack & the Bean-Sprout and Red 
Riding Hood. In recognition of our 
support, the National Arts Council 
of Singapore conferred Frasers 
Hospitality the Friend of the Arts 
award and Capri by Fraser, Changi 
City was named a Supporter of the 
Arts.

Changi City Point played host to 
several art exhibitions, including 
Arts @ Metta, a fundraiser by the 
Metta School to equip their special 
needs alumni with life skills and 
employment; and Very Special Arts’ 
Annual Art Exhibition to showcase 
the artistic talents of people with 
special needs.

From February to August 2014, 
China Square Central also housed 
National Arts Council-licenced 

street buskers, who performed 
during lunch time at its canopy area 
to the delight of passers-by.

In Australia, Frasers Property 
Australia and its joint-venture 
partner Sekisui House sponsored 
A$30,000 towards the BEAMS 
Arts Festival in Chippendale for 
the third year running. Organised 
by 350 local creative people, the 
major community event drew 12,000 
visitors to the areas within and 
surrounding Central Park, Sydney 
to experience visual and performing 
arts and feast on local food.

Central retail centre has become 
the heart and soul of Central Park, 
Sydney, delivering a continual series 
of community engagement events 
and theatrical activations. These 
include The 7m Pitch, a curated 
collection of video art playing onto 
the monumental video wall within 
Central; the Creative Playground 
–1,000 sq m of creative community 
space, including visual arts studios, 
a performance/rehearsal studio, 
an active fashion-making atelier, 
a photography school, an event 
space, a pop-up cinema programme 
and ever-changing activities and 
whimsical events. This creative 
activation continues the tradition 
of activating space for community 
use at Central Park, which began 
in 2008 with the establishment 
of the FraserStudios visual and 
performing arts hub within 
otherwise vacant warehouses.

A number of events were also 
organised in Central Park, 
Perth, including the Colours of 
Our Country exhibition, and a 
photography competition for its 
tenants.

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES1

3

5

2

4

63

1 

2 

3 

4 

5 

Very Special Arts’ Annual Art 

Exhibition

Colours of Our Country Exhibition

BEAMS Arts Festival

BEAMS Arts Festival

Jack & the Bean-Sprout

ANNUAL  REPORT2014C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

COM MU NITY  OUTR EAC H 

Charitable activities
At Changi City Point, President 
Tony Tan Keng Yam launched the 
President’s Challenge and the 
Carnival @ Changi on 25 March. All 
proceeds from the carnival went to 
the President‘s Challenge 2014.

The popular board game Monopoly 
went life-sized at Family Monopoly 
Challenge organised by Frasers 
Centrepoint Malls. The event, 
which stretched over a month from 
23 May to 29 June 2014 in eight 
Frasers Centrepoint Malls, was 
organised to raise funds for the 
Care & Share Movement under the 
Community Chest and to support 
the International Year of the Family. 
Many families, under the care of the 
Family Service Centres supported 
by the Community Chest, were 
invited to participate in this highly 
interactive and fun-filled game. The 
Family Monopoly Challenge event 
raised proceeds of S$31,800 which 
went to the Community Chest in 
support of needy families. 

In addition, our malls hosted a 
number of fundraising activities. 
Causeway Point held a two-day 
fund raising event for MINDS where 
students from NTU performed, 
displayed interactive exhibits and 
sold merchandise at stalls. Changi 
City Point sponsored a pushcart 
for SingYouth Hub, a non-profit 
organisation focussed on nurturing 
and engaging Singaporean youths  
in community work, to sell  
hand-made products as part of its 
fundraising efforts. At Changi City 
Point, national shuttlers attempted 
a record-breaking badminton rally 
to raise 10,000kg of rice for the 
needy in the Cheng San-Seletar 
Division. YewTee Point collaborated 
with YewTee Community Club to 
organise a donation drive to benefit 
the neighbourhood’s families under 
the ComCare assistance scheme. 

64

Central Park, Perth played host to 
events including Pink Ribbon Day 
and Australia’s Biggest Morning Tea 
organised by the Cancer Council of 
Western Australia; Step Up for MS 
vertical run which raised A$211,510 
for the Multiple Sclerosis Society; 
and worked with tenants to organise 
barbecues at the park and forecourt 
of the premises to raise funds for 
various charities.

Reaching out to the 
underprivileged
Our properties hosted several 
groups of the elderly and 
the underprivileged in their 
communities. Causeway Point 
invited 55 children from three 
homes/orphanages – Melrose 
Home, Sunbeam Place and Pertapis 
Children’s Home to watch Forever 
Friends shows, dine at Pasta Mania 
and participate in a make-a-bear 
workshop; and treated 30 needy 
families from the North-West CDC 
to lunch with two local celebrities, 
Calvin Soh and Taufik Batisah.

Anchorpoint worked with Privileged 
Enterprise Group to bring the 
elderly from various nursing 
homes and elderly homes to the 
mall to enjoy the performances 
and activities at its premises, and 
sponsored 100 mini hampers for the 
elderly. 

For the second year running our 
Office and Commercial team 
organised a fun-filled afternoon for 
children from Melrose Home at The 
Polliwogs, where they played at the 
indoor playground and had pizza, 
drinks and snacks.

Fraser Suites CBD Beijing hosted 
children from the Beijing Bethel 
Foster Home at Christmas for 
their annual party; Fraser Place 
Namdaemun, Seoul invited 25 
children and teachers from 
Hyochang Social Welfare Centre 
to celebrate its anniversary with a 

pizza-making class for the children 
and a magician; and Capri by Fraser 
Kuala Lumpur held a charity 
buka puasa event for 30 disabled 
children from the Social Welfare 
Department.

China Square Central and Fraser 
Suites Dubai both successfully 
organised blood donation drives 
with the number of donors 
exceeding the total targeted. 

Fraser Suites Seef, Bahrain donated 
18 sofas to The Royal Charity 
Organization in aid of orphans and 
widows in the Kingdom of Bahrain.

A place for people to come together
Our malls also served as spaces 
for people to come together for fun 
activities. Causeway Point partnered 
with the Northwest CDC to host 200 
line dancers at its atrium in May and 
again in September.

Bedok Point organised a book 
swap event that saw not only 530 
shoppers donate books, but the 
mall also gave away $5 Bedok Point 
voucher to shoppers who completed 
a book swap. The balance books 
were donated to the underprivileged 
in the Kampong Chai Chee area.

VOLUNTEERISM

The Australand Foundation 
provides donations and sponsors 
staff volunteering activities 
directed at the environment and 
disadvantaged youth. A bank of 
500 staff volunteering days per 
annum is matched with a donation 
budget of approximately $150,000 
per annum to identify and support 
charities and activities in which staff 
can participate. In 2014, these were 
as varied as Clean-Up Australia Day 
including a scuba “dive for debris”, 
Schools Tree Day and building a Red 
Cross garden at a Brisbane primary 
school. 

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 
1

3

2

4

65

5

1 

2 

Family Monopoly Challenge

ComCare beneficiaries of 

YewTee Point’s donation 

drive

3 

Pizza-making class 

hosted by Fraser Place 

Namdaemum, Seoul for 

children from Hyochang 

Social Welfare Centre

4 

5 

Clean-up Australia Day

Blood donation drive at 

Fraser Suites Dubai

ANNUAL  REPORT2014C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

ENVIRONMENTALLY 
FRIENDLY 
PROPERTIES

As a responsible developer 
conscious of the need to minimise 
our environmental impact, Frasers 
Centrepoint continues to implement 
environmental initiatives in the 
properties we develop and manage.

RECOGNITION O F  O UR 
EFFOR TS

Our “green” buildings have received 
many accolades in recognition of 
their environmentally sensitive 
provisions.

In Singapore, all the properties 
in our commercial trust, Frasers 
Commercial Trust, have attained the 
Green Mark Gold Award certification 
by the Building & Construction 
Authority (BCA) of Singapore, 
while most of the properties in our 
retail trust, Frasers Centrepoint 
Trust, have minimally attained the 
Green Mark Gold Award. Following 
retrofitting work, Alexandra 
Point, one of our non-REIT office 
buildings, achieved the BCA Green 
Mark Platinum Award.

Our first hotel-residence Capri by 
Fraser, Changi City, Singapore is 
also a BCA Green Mark-certified 
development with high efficiency 
lighting, water-waste minimisation 
systems, regular preventative 
maintainence and environmentally 
responsible purchasing policies in 
place.

66

Meanwhile, Central Park in Perth, 
Australia has achieved many firsts 
in environmental certification. 
It was the first commercial 
building in Australia to achieve 
a 4.5-star National Australian 
Built Environment Rating System 
(NABERS) Energy rating, and 
subsequently became the first 
premium office building in Perth to 
attain a 5-star NABERS Energy base 
building rating. Central Park also 
achieved a 4.5-star NABERS Indoor 
Environment rating and a 3.5-star 
NABERS water rating.

Designed with cutting-edge energy 
efficient technology, Caroline 
Chisholm Centre in Canberra, 
Australia also has a 5-star NABERS 
Energy base building rating.

Central Park, Perth also took 
home top honours in the Western 
Australia Property Awards by 
winning the Commercial Office 
Manager of the Year. This award 
recognises the Manager’s 
commitment to operating Central 
Park in an environmentally 
responsible manner, maintaining 
good tenant relations and engaging 
the Central Park and neighbouring 
communities. 

EN HAN CI NG E NERGY 
EF F IC IENCY 

We have implemented various 
energy efficient measures and 
monitoring systems to reduce, and 
monitor energy consumption in 
our Singapore properties. Motion 
sensors and energy saving lighting 
systems have been installed at the 
car parks, corridors and staircases 
at the properties in Singapore, 
at the food court and individual 
tenants’ premises at Alexandra 
Technopark, and also in toilets of 
Alexandra Point and the office tower 
of China Square Central. 

To ensure that the air-conditioning 
and mechanical ventilation system 
(ACMV) is run at an optimum 
level at China Square Central, 
a performance-based savings 
scheme was established with the 
ACMV vendors. Vendors are also 
contractually obliged to optimise 
the performance for the chillers 
and cooling tower to reduce energy 
consumption. To further conserve 
energy, China Square Central’s 
escalators are operated at 
pre-determined hours. Over at 55 
Market Street, the air-conditioning 
is automatically switched off during 
off-peak hours and Alexandra 
Technopark’s air-conditioning 
system was retrofitted, resulting in 
improved energy usage.

The energy saving initiatives 
resulted in savings in energy 
consumption of 10.8%, 1.9% and 
9.3% respectively for China Square 
Central, 55 Market Street and 
Alexandra Technopark in FY2013/14. 

In addition, we undertook a green 
retrofitting at Alexandra Point, 
which included an upgrade of the 
chiller plant and installation of 
variable speed drives to chilled 
and condenser water pumps and 
AHUs. We also instituted an energy 
management and review policy to 
monitor and set targets to maintain 
the plant performance at  
≤0.6 kilowatts per refrigeration ton 
through optimisation of the system.

At our malls, through vigilant 
management, our energy 
consumption level was 32.5% 
better than the American Society of 
Heating, Refrigerating, and  
Air-Conditioning Engineers 
(ASHRAE) Standard 90.1, an 
international energy consumption 
benchmark. We are looking into 
installing LED lighting at some of our 
malls and plan to further improve the 
operating efficiency of Northpoint’s 
chiller plant through the purchase of 
a proprietary system. 

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES1

2

3

67

4

1 

2 

3 

4 

Alexandra Point, Singapore

Alexandra Technopark, 

Singapore

Bedok Point, Singapore 

China Square Central, 

Singapore 

ANNUAL  REPORT2014FRA SE RS 
CE N TRE POI N T LIM ITED & 
SU BSID IARIES

C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

Over in Australia, Central Park, 
Perth was the first commercial 
property in the state to incorporate 
a solar photovoltaics (PV) system to 
provide renewable energy. The PV 
system is able to generate  
16,000 kilowatt hours of solar 
electricity a year, reducing Central 
Park’s carbon footprint.

In 2014, a number of energy saving 
initiatives were implemented at 
Central Park, Perth, resulting in 
a 2.1% reduction in base building 
energy consumption. Energy 
efficient T5 lights were installed 
at public and tenant car parks, 
and tenants’ area, and will be 
installed progressively throughout 
the property. A control system with 
motion sensors was also put in 
place to conserve electricity when 
the facilities are not in use. The 
new system uses less than half 
the energy compared to the old 
system. Lift upgrading works are in 
progress and the refurbished lifts 
will incorporate destination control 
and state-of-the-art permanent 
magnet motors which are expected 
to reduce energy consumption by 
about 30%. 

As with previous years, Central 
Park’s management purchased 
carbon credits as part of the Carbon 
Farming Initiative programme to 
offset the emissions generated by 
the base building operations. The 
programme encourages sustainable 
farming and supports landscape 
restoration projects. 

At Caroline Chisholm Centre, T5 
and LED lighting were installed 
throughout the property and are 
controlled by an environmentally 
conscious computerised 
management system. The Dali 
Dynalite lighting control system 

provides effective management of 
energy usage. Solar panels have 
also been installed to provide 
renewable energy.

In the meantime, Central Park, 
Sydney’s substantial green 
infrastructure, including the central 
thermal plant and tri-generation 
power station, has been completed, 
and operations commenced during 
the year. In addition, advanced 
negotiations are underway to 
dispose of the onsite central 
thermal plant to owner-operator 
Brookfield Infrastructure.

F UR THE RI NG WATER 
C ON SERVATION 

We installed water-efficient fittings  
and adopted water-efficient flow 
flush/rates in some of our properties 
in Singapore. At Alexandra 
Technopark and Alexandra Point, 
NEWater (treated used water) is 
used for non-potable purposes such 
as water for air-conditioning cooling 
towers, irrigation and fire-fighting 
facilities like the fire hydrant and 
sprinkler system. 

In addition, China Square Central 
is part of the Friends of Water 
programme organised by the Public 
Utilities Board. This programme 
aims to recognise, inspire and 
encourage community stewardship 
of water resources in Singapore.

The water-saving initiatives have 
culminated in China Square Central, 
55 Market Street and Alexandra 
Technopark being certified 
Water Efficient Buildings with 
consumption savings of 2.5%, 10.7% 
and 15.1% respectively. Alexandra 
Point is now a PUB Water Efficient 
Building with estimated savings of 
30,646 cubic metres per year. 

The managers of our malls monitor 
water consumption daily and 
achieved 9.2% savings from the 
use of NEWater for non-potable 
purposes.

In Australia, to reduce water 
consumption at Central Park, 
Perth, tap flow restrictors, low-flow 
shower heads, low-flush water 
closets and a park reticulation 
weather station were installed. In 
addition, installation of dual-flush 
toilets, low water use urinals and 
automatic AAA taps continued in 
2014. Central Park achieved savings 
of 12.9% in water consumption 
during the year. 

At Caroline Chisholm Centre,  
water-efficient tap-ware such as 
the ‘Rada Sensor’ shower controls, 
rainwater recycling and Greywater 
were implemented.

In Sydney, Central Park’s water 
recycling plant is now owned and 
operated by independent water 
infrastructure specialist group Flow 
Systems. 

Meanwhile, Australand was 
identified as the Regional Sector 
Leader for Australia/Diversified/
Large Cap Category under the 
Global Real Estate Sustainability 
Benchmark (GRESB). GRESB is 
an industry-driven organisation 
committed to assessing the 
sustainability performance of real 
estate portfolios (public, private 
and direct) around the globe. The 
dynamic benchmark is used by 
institutional investors to engage 
with their investments with the 
aim to improve the sustainability 
performance of their investment 
portfolio, and the global property 
sector at large. 

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Caroline Chisholm Centre, Canberra, Australia

Central Park, Perth, Australia

Central Park, Sydney, Australia

ANNUAL  REPORT2014C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

FOST ERING A G RE EN 
LIFES TYLE AND 
ENV IRONMENT    

The sustainable practices 
implemented by China Square 
Central, Alexandra Technopark, 
51 Cuppage Road, Valley Point, 
Robertson Walk and Alexandra 
Point’s management offices have 
been accredited by the Singapore 
Environment Council under Project: 
Eco-Office. 

Posters on environmental 
conservation, such as recycling, 
energy conservation and water 
saving are placed in common areas 
as part of the on-going educational 
initiatives. In addition, recycling bins 
for cans, plastic and paper have 
been placed at various locations 
across our properties to encourage 
recycling.  

As with previous years, most of our 
commercial properties in Singapore 
participated in Earth Hour 2014 
organised by the World Wide Fund 
for Nature – all non-essential 
lightings were turned off. This is 
part of our continuous commitment 
to save and conserve energy usage 
and participate in the drive to create 
awareness towards a sustainable 
environment. 

Our hotel residence, Capri by 
Fraser, Changi City also participated 
in Earth Hour 2014 where lights 
in public areas, signage, ambient 
music and back-of-house  
air-conditioning were switched 
off. Guests were encouraged to do 
their part in reducing our carbon 
footprint by dining in the dark by 
candlelight.

As part of our efforts to foster 
greener lifestyles and environments, 
all our serviced residences in 
Singapore encourage residents to 
“Go Green” by offering them the 
option to re-use their towels and 
providing bath amenities packaged 
in re-usable cloth bags to reduce the 
use of paper and plastics.

H ELPI NG TO MA KE GREEN  A 
WAY  OF L IFE

Watertown, a Green Mark GoldPLUS 
certified development, is a  
high-density mixed-use 
development that helps promote 
a full-service neighbourhood and 
reduces commuting trips for the 
residents for various essential 
services. In addition to seamless 
connectivity to the MRT, LRT and 
bus interchange, it has an excellent 
bicycle infrastructure with the 
provision of more than 300 bicycle 
lots inside the development and 
green parking lots with electric 
charging stations.

Various energy saving strategies 
were used, such as provision of 
Regenerative Lifts, LED lights 
occupancy sensors. While water 
efficiency was achieved through 
the provision of water-efficient 
fittings (min 2 ticks WELS rating), 
rainwater harvesting for irrigation 
and auto irrigation was employed. 
Environmentally friendly paints 
and adhesives were used and a 
pneumatic waste collection system 
provided.

Watertown was constructed 
using various green construction 
strategies such as low concrete 
usage index, an environmental 
management plan, CONQUAS 
certification, and the use of 
environmentally friendly building 
materials. Homes were also 
provided with highly efficient 
appliances. Overall, the project is 
able to reduce about 1,457 tons of 
carbon dioxide emissions and save 
about 18, 542 cubic metres of water 
per year.

The development has an integrated 
green design to reduce energy 
consumption by about  
2,913,243 kilowatt hours per year 
in the buildings and increase the 
density of greenery in the project 
site. Some of these design features 
include facades with good shading 
to the glass, louvered screens 
and cool paints for high thermal 
performance, extensive landscaping 
and water features with more than 
300 trees and 1,000 palms on the 
e-decks and the sky decks, and 
naturally ventilated common areas 
with daylight provision.

In Australia, One Central Park, 
Sydney features a monumental 
cantilever expressed as a Sky 
Garden extending from level 29 of 
the taller East tower. The cantilever 
supports a visually arresting  
light-reflecting heliostat system, 
while the largest en masse vertical 
gardens in the world – covering 
1,100 sq m – clad the exterior 
facades. The unique heliostat 
design feature is the first of its kind 
to be used in a residential context 
in Australia and the largest of its 
type in the world used in an urban 
environment.

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FRASERS CENTREPOINT LIMITED & SUBSIDIARIESThe garden was designed for 
plant life and the heliostats allow 
redirected sunlight to be used in 
new ways to improve the quality 
of high-rise living. The use of 
the heliostats, coupled with 
hydroponics, allowed One Central 
Park, Sydney, to manage and extend 
vegetation and daylight to previously 
inaccessible places of the building. 
The hydroponic irrigation systems 
allow soil-less growth of vertical 
vegetation in planters and on walls 
all the way up to the tower tops, 
resulting in green facades that trap 
carbon dioxide, emit oxygen and 
provide energy-saving shade. 

The 320 glittering heliostats also 
track sunlight and redirect it deep 
down into the building and onto 
overshadowed parklands; to places 
that direct sun beams cannot reach. 

FCL will to strive to keep improving 
our eco-friendly practices and 
building a sustainable environment 
for all.

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Watertown, Singapore

Reusable bath amenity bags to 

reduce use of paper and plastics

ANNUAL  REPORT2014embarked on a co-branded leadership 
certificate programme with Cornell 
University’s e-learning platform. 

At Frasers Centrepoint Homes, in 
addition to sending staff to attend 
industry programmes focussed on 
technology, innovation, productivity 
and cost management, the Business 
leaders provide team coaching 
using design thinking methodology 
during regular team meetings to 
stretch the team’s critical thinking 
and project management skills. 

FCL is also proud to have its 
Approved Training Organisation 
status renewed by the Workforce 
Development Agency, affirming 
our commitment to providing 
continuous learning opportunities 

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C O R P O R A T E   S O C I A L

R E S P O N S I B I L I T Y

HUMAN CAPITAL 

LEADERSHIP  FOR  TH E NE XT 
LEAP  FORWAR D

strategic leadership skills through 
special assignments, representation 
at industry events and forums 
as determined by the respective 
Business CEO. 

For our middle leaders, 
development is based on their 
individual development needs 
as well as group programmes 
customised for the Business Units. 
Building on the positive results 
achieved through customised 
group programmes, Frasers 
Centrepoint Commercial leveraged 
last year’s Facilities Management 
programme and added another 
module which focussed on the 
manager’s responsibilities and legal 
accountabilities. Similarly, to tap 
group learnings, Frasers Hospitality 

It has been a year of profound 
change and excitement for FCL. The 
Group’s rapidly increasing business 
reach has created a greater need 
for a robust leadership bench, ready 
to propel FCL’s growth. 

As at 30 September 2014, our staff 
strength stood at 2,230, an increase 
of 42% from 1,567 at the end of the 
last financial year. This increase 
was mainly due to the acquisition 
of Australand and the expansion 
of our businesses both locally and 
overseas, including the formation 
of FHT.

GROWING O UR  TALENT

Strong future leadership built on 
solid functional excellence is the 
foundation for FCL’s approach 
towards talent development. To 
build a comprehensive bench 
strength, we have two paths for 
talent development – the leadership 
track and the core specialist track. 

Our leadership track comprises 
programmes for senior leaders, 
middle leaders and junior emerging 
leaders. For our senior leaders, 
focus is placed on sharpening their 

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72

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESfor all our staff. To fortify our 
middle management leadership 
capabilities, in the coming year our 
management training programme 
will be based on a three-tiered 
theme - Managing Business, 
Managing Team Synergies and 
Managing Self. 

held activities targeting both the 
mental and physical wellness of 
our staff. These activities were well 
received and well participated. 
In recognition of our efforts, we 
have consistently won the 
Singapore Health Award for the past 
few years. 

For FY2013/14, our local staff put 
in a total of 18,377 training hours, a 
20% increase over the previous year.

ENGAGING OUR  STAFF

During the course of the year, we 
organised many staff engagement 
activities which saw commitment 
and involvement all the way from 
top management. The Corporate 
Wellness Committee, chaired by the 
CEO of Development & Property, 

RECOGNISING ACHIEVEMENTS

We continue to recognise our staff 
and celebrate their successes 
along the way. R2OCI2T2 awards 
were given to staff who consistently 
demonstrated our R2OCI2T2 values 
at work. With our continuing efforts 
towards service excellence, this 
year we are proud to have 108 staff 
honoured for their excellent service at 
the EXSA Awards, an increase of 38% 
compared to 78 awardees last year. 

STRE NGTH ENIN G FA MILY 
TIE S

We believe in the importance of 
building family bonds. In addition 
to corporate passes to family 
attractions likes the Singapore 
Zoo, we also have our annual Eat 
With Your Family day when staff are 
released from work early so that 
they can be home early for dinner 
with their family. Our FCL Family 
Day saw overwhelming participation 
with more than 2,000 staff and their 
family members having a rollicking 
good time at the S.E.A. Aquarium. 
To enhance the welfare of our staff’s 
families, we launched the FCL 
Bursary Award in December 2014 
which further fosters a stronger 
emotional bond between staff and 
the company.

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FCL Long-Service Awards

FCL Dinner & Dance 2014

FCL Family Day

Promoting Teamwork at FCL 

Staff Orientation Session

Inaugural FCL Bursary 

Award Ceremony 2014

Excellent Service Award 2014

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73

ANNUAL  REPORT2014A W A R D S   A N D   A C C O L A D E S

  C O R P O R A T E

  C O M M E R C I A L

•  SIAS Investors’ Choice Award –
Most Transparent Newly-Listed 
Company Award 2014

  Frasers Centrepoint Limited

•  World Travel Award - Middle 

East’s Leading Serviced 
Apartment Brand 2013 & 2014

  Frasers Hospitality Pte Ltd

•  Business Traveller Middle East 
Awards 2014 - Best Serviced 
Apartments Company in the 
Middle East 

  Frasers Hospitality Pte Ltd

•  CHIC International Hospitality 

Excellence Award by China Hotel 
Investment Conference
  Frasers Hospitality Pte Ltd

•  2014 South East Asia Property 

•  9th China Hotel Starlight Awards 

Awards – Best Developer 
(Singapore)

  Frasers Centrepoint Limited

- Best Serviced Apartments 
Brand of China

  Frasers Hospitality Pte Ltd

•  Singapore Health Award 2013 by 
Health Promotion Board – Silver

  Frasers Centrepoint Limited

•  HR Vendors of the Year 2013 by 
Human Resources Magazine

  Frasers Hospitality Pte Ltd

•  World Travel Award - China’s 
Leading Serviced Apartment 
Brand 2013 & 2014

  Frasers Hospitality Pte Ltd

•  Preferred Serviced Apartments 
of the Year by Human Resources 
Magazine

  Frasers Hospitality Pte Ltd

•  World Travel Award - Asia’s 
Leading Serviced Apartment 
Brand 2014

  Frasers Hospitality Pte Ltd

•  World Travel Award - 

Australasia’s Leading Serviced 
Apartment Brand 2013
  Frasers Hospitality Pte Ltd

•  SIAS Investors’ Choice Award –

Singapore Corporate Governance 
Award 2014, REITs & Business 
Trusts category – Runner-up
  Frasers Commercial Trust

•  BCA Green Mark Platinum Award 

2014

  Alexandra Point

•  BCA Green Mark Gold Award 2014
  Bedok Point

•  Occupational Health and Safety 

Assessment Specification (OHSAS 
18001) Certification
  –  Alexandra Point
  –  Alexandra Technopark
  –  55 Market Street
  –  China Square Central

•  ICSC Asia Pacific Shopping 

Center Awards 2014 (Marketing) 
– Finalist

  Frasers Centrepoint Malls

•  Safety & Security Watch Group 

(Individual Award) 2014 by Jurong 
Police Division & Singapore Civil 
Defence Force
  Causeway Point

•  Safety & Security Watch Group 
(Individual Award) 2013 by 
Singapore Police Force

•  World Travel Award - South 
Korea’s Leading Serviced 
Apartment Brand 2014
  Frasers Hospitality Pte Ltd

•  World Travel Award - Europe’s 
Leading Serviced Apartment 
Brand 2014

  Frasers Hospitality Pte Ltd

•  World Travel Award - England’s 
Leading Serviced Apartment 
Brand 2014

  Frasers Hospitality Pte Ltd

•  World Travel Award - Hungary’s 
Leading Serviced Apartment 
Brand 2014

  Frasers Hospitality Pte Ltd

74

•  World Travel Award - Singapore’s 

  The Centrepoint

Leading Serviced Apartment 
Brand 2013

  Frasers Hospitality Pte Ltd

•  Best Serviced Apartment 

Operator by Travel Trade Gazette 
Frasers Hospitality Pte Ltd

•  2014 Arts Supporter Award by 

National Arts Council

  Changi City Point

•  Friends of Water 2013 by Public 

Utilities Board

  China Square Central

•  Water Efficient Building 2013 by 

Public Utilities Board
  China Square Central

•  Excellent Service Award (EXSA) 

2013 - Silver Award

  –  China Square Central 

–  Robertson Walk

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES•  Eco Office Award 2013 – 2015 by 
Singapore Environment Council

  –  51 Cuppage Road
  –  Alexandra Point
  –  Alexandra Technopark
  –  China Square Central
  –  Robertson Walk
  –  Valley Point

•  Singapore Service Class Award 

  –  Alexandra Technopark
  –  Changi City Point
  –  China Square Central 
  –  Northpoint
  –  Valley Point
  –  YewTee Point

•  Western Australia Property 

Awards 2014 – Commercial Office 
Manager of the Year 

(2012 – 2015) by Spring Singapore

  Central Park, Perth

  –  Anchorpoint
  –  Compass Point
  –  Northpoint
  –  The Centrepoint
  –  YewTee Point

•  Happy Toilets Certification 
(4-stars Award) 2013 by 
Restroom Association (Singapore)

  –  Robertson Walk
  –  The Centrepoint

•  4.5-star NABERS Indoor 

Environment Rating 

  Central Park, Perth

•  3.5-star NABERS Water Rating
  Central Park, Perth

•  5-star NABERS Energy Base 

Building Rating
–  Caroline Chisholm Centre, 

Canberra

•  Orchard Road Best Dressed 

–  Central Park, Perth

Building (Top 3 Winners) 2013 
by Orchard Road Business 
Association

  The Centrepoint

•  Excellent Service Award (EXSA) 

2014 - Star Award
  Changi City Point

•  Excellent Service Award (EXSA) 

2014 - Gold Award

  –  Alexandra Technopark
  –  Changi City Point
  –  Causeway Point
  –  Robertson Walk
  –  YewTee Point

•  Excellent Service Award (EXSA) 

2014 - Silver Award
  –  51 Cuppage Road
  –  Alexandra Point

  R E S I D E N T I A L    

•  2014 South East Asia Property 
Awards Best Condominium 
Development (Singapore) –  
Highly Commended

  Flamingo Valley

•  FIABCI Singapore Award 2014
  –  Waterfront Key 
  –  Waterfront Waves

•  BCA Green Mark GoldPLUS  

Award 2014
  Watertown

  H O S P I T A L I T Y

•  World Travel Award - Asia’s 

Leading Serviced Apartments 
2014

  Fraser Suites Singapore

•  World Travel Award - 

Australasia’s Leading Serviced 
Apartments 2014 
  Fraser Suites Sydney

•  World Travel Award - Asia’s 

Leading Hotel Residences 2013 & 
2014

  Capri by Fraser, Changi City / 

Singapore

•  World Travel Award - China’s 
Leading Serviced Apartments 
2013 & 2014

  Fraser Suites Chengdu

•  World Travel Award - India’s 

Leading Serviced Apartments 
2014

  Fraser Suites New Delhi

•  World Travel Award - South 
Korea’s Leading Serviced 
Apartments 2014

  Fraser Place Namdaemun, Seoul

•  World Travel Award - Europe’s 
Leading Serviced Apartments 
2014

  Fraser Suites Le Claridge 
Champs-Élysées, Paris

•  World Travel Award - England’s 
Leading Serviced Apartments 
2014

  Fraser Suites Kensington, London

•  World Travel Award - France’s 
Leading Serviced Apartments 
2014

  Fraser Suites Le Claridge 
Champs-Élysées, Paris

•  World Travel Award - Hungary’s 
Leading Serviced Apartments 
2014

  Fraser Residence Budapest

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ANNUAL  REPORT2014A W A R D S   A N D   A C C O L A D E S

H O S P I T A L I T Y

•  World Travel Award - Scotland’s 
Leading Serviced Apartments 
2014

  Fraser Suites Edinburgh

•  World Travel Award - Turkey’s 
Leading Serviced Apartments 
2014

  Fraser Place Anthill Istanbul

•  World Travel Award - Bahrain’s 
Leading Serviced Apartments 
2013 & 2014

  Fraser Suites Bahrain

•  World Travel Award - Qatar’s 
Leading Serviced Apartments 
2013 & 2014 

  Fraser Suites Doha

•  World Travel Award - Dubai’s 
Leading Serviced Apartments 
2013 & 2014

  Fraser Suites Dubai
  H O S P I T A L I T Y
•  Industry Eminence Awards - Best 
Serviced Apartments and Hotel 
Residences Award 2014
  Fraser Suites New Delhi 

•  HM Awards for Hotel & 

Accommodation Excellence, HM 
Magazine - Serviced Apartment 
Property of the Year 2013 & 2014

  Fraser Suites Sydney

–  Fraser Place Central Seoul
–  Fraser Residence Nankai 

Osaka

–  Fraser Residence Shanghai
–  Modena Putuo Shanghai
–  Capri by Fraser, Changi City / 

Singapore

•  Hotel Interior Award by 

International Property Awards – 
Highly Commended

  Capri by Fraser, Changi City / 

Singapore 

•  Scottish Hotel Awards - 

Serviced Apartments Special 
Commendation Award
  Fraser Suites Edinburgh

•  Scottish Hotel Awards - Serviced 
Apartments Hospitality Award 
2014

  Fraser Suites Glasgow

•  Excellent Service Award (EXSA) 

2014 - Star Award
–  Fraser Suites River Valley 

Singapore

–  Fraser Place Robertson Walk 

Singapore

–  Fraser Residence Orchard
–  Fraser Place Fusionopolis 

Singapore

–  Capri by Fraser, Changi City / 

Singapore

•  Excellent Service Award (EXSA) 

2014 - Gold Award
–  Fraser Suites River Valley 

Singapore

–  Fraser Place Robertson Walk 

Singapore

–  Capri by Fraser, Changi City / 

Singapore

•  Excellent Service Award (EXSA) 

2014 - Silver Award
–  Fraser Suites River Valley 

•  Scottish Hotel Awards - Serviced 

Singapore

Apartments of the year 2014 

–  Fraser Place Robertson Walk 

  Fraser Suites Glasgow

Singapore

–  Fraser Residence Orchard Pte 

•  9th China Hotel Starlight Awards 

Ltd

- Best Luxurious Serviced 
Apartment of China
  Fraser Suites Chengdu 

•  9th China Hotel Starlight Awards 

- Best Newly Open Serviced 
Apartment of China

–  Fraser Place Fusionopolis 

Singapore

–  Capri by Fraser, Changi City / 

Singapore

•  World Travel Award - World’s 
Leading Serviced Apartments 
2013

  Fraser Suites Le Claridge 
Champs-Élysées, Paris 

•  Best Serviced Residence in China 
2013 by Business Traveller China

  Fraser Suites Nanjing 

•  Best of Malaysia Travel Awards - 
Best Serviced Residence 2013

  Fraser Place Kuala Lumpur

•  World Travel Award - Asia’s 

Leading Hotel Residences 2013

  Capri by Fraser, Changi City / 

Singapore

•  Certificate of Excellence 2014 by 

  Fraser Suites Guangzhou 

Trip Advisor

  –  Fraser Suites Dubai
  –  Fraser Suites Glasgow
  –  Fraser Suites Guangzhou
  –  Fraser Suites Harmonie, Paris

•  9th China Hotel Starlight Awards 
- Best Serviced Apartment of 
China 

  Fraser Suites Top Glory Shanghai 

–  Fraser Suites Le Claridge 
Champs Élysées, Paris

  –  Fraser Suites New Delhi
  –  Fraser Suites Perth

–  Fraser Suites Seef Bahrain
–  Fraser Suites Singapore
–  Fraser Suites Sukhumvit 

Bangkok

–  Fraser Suites Insadong Seoul
–  Fraser Suites Suzhou
–  Fraser Place Kuala Lumpur
–  Fraser Place Singapore

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•  9th China Hotel Starlight Awards 
- Best Designed Boutique Hotel 
Residence of China 

  Modena Putuo Shanghai 

•  Top Performing Partner by 

Booking.com

  Fraser Residence Shanghai

FRASERS CENTREPOINT LIMITED & SUBSIDIARIES  A U S T R A L I A

•  World Travel Award - China’s 
Leading Serviced Apartments 
2013 & 2014

  Fraser Suites Chengdu

•  Best Tall Building Worldwide by 

the 2014 Council on Tall Buildings 
and Urban Habitat

  One Central Park, Sydney

•  World Travel Award - 

Australasia’s Leading Serviced 
Apartments 2013

  Fraser Suites Sydney, Australia

•  Best Tall Building in Asia and 

Australia by the 2014 Council on 
Tall Buildings and Urban Habitat

  One Central Park, Sydney

•  World Travel Award - Hungary’s 
Leading Serviced Apartments 
2013

  Fraser Residence Budapest

•  Innovation Award by the 2014 
Council on Tall Buildings and 
Urban Habitat - Finalist
  One Central Park, Sydney

•  The Best Serviced Apartment of 

2013 by Booking.com
  Fraser Suites Suzhou

•  Emporis Award 2014 –  

World’s Top 5 Skyscrapers

  One Central Park, Sydney

•  International Green 

Infrastructure Award by World 
Green Infrastructure Congress 
2014

  One Central Park, Sydney

•  Leading European Architects 
Forum (LEAF) Awards 2014 – 
Best Sustainable Development of 
the Year

  One Central Park, Sydney

•  Leading European Architects 
Forum (LEAF) Awards 2014 – 
Best Overall Project

  One Central Park, Sydney

•  WAN Façade Award 2014 – Highly 

Commended

  One Central Park, Sydney

•  Development Excellence 

Awards by Urban Taskforce - 
Development of the Year Award

  One Central Park, Sydney

•  Awards for Excellence by 

Urban Development Institute of 
Australia (New South Wales) – 
High Density Development

  One Central Park, Sydney

  A U S T R A L A N D

•  2014 Awards for Excellence by 
Urban Development Institute 
of Australia (Queensland) - 
Excellence in Environmentally 
Sustainable Development – 
Residential

  The Green Quarter, Hamilton 

Reach, Brisbane

•  Australian Timber Design Awards 
2014 - Judges’ Innovation Award 
  The Green, Parkville, Melbourne

•  2014 Awards for Excellence by 
Urban Development Institute of 
Australia (Western Australia) – 
Best Medium Density Residential 
Project

  Kingston, Cockburn Living, Perth

•  2013 Awards for Excellence by 
Urban Development Institute of 
Australia (Queensland) – Multi-
Level Development

  The Promontory, Yungaba, 

Brisbane

•  2013 National Innovation and 

Excellence Awards – Best Master 
Planned Community

  Port Coogee, Perth

•  Awards for Excellence by 

Urban Development Institute of 
Australia (New South Wales) – 
Design & Innovation

  One Central Park, Sydney

•  2014 AIB National Professional 
Excellence in Building Award 
(Residential Construction $100 
Million Plus) by Australian 
Institute of Building 

  One Central Park, Sydney

•  Engineers Australia Sydney 

Excellence Awards – Building & 
Structure Award

  One Central Park, Sydney

•  Engineers Australia Sydney 

Excellence Awards – 
Infrastructure Award for central 
thermal plant

  One Central Park, Sydney

•  Sydney Design Awards 2014 - 

Landscape Design Award
  One Central Park, Sydney

•  2013 Awards for Excellence by 
Urban Development Institute 
of Australia (National) – 
Environmental Excellence Award

  Frasers Landing, Mandurah

•  2013 Awards for Excellence by 
Urban Development Institute of 
Australia (Western Australia) – 
Environmental Excellence Award

  Frasers Landing, Mandurah

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ANNUAL  REPORT2014E N T E R P R I S E - W I D E

R I S K   M A N A G E M E N T

Enterprise-wide Risk Management 
(ERM) is an integral part of the 
business activities of FCL and 
its subsidiaries (collectively, the 
Group). The Group maintains 
a risk management system to 
proactively manage risks to 
support the achievement of its 
business objectives. Through active 
risk management, Management 
creates and preserves value for the 
organisation. 

RISK  MAN AGEME NT PR OC ESS

Since FCL’s listing on the SGX-ST 
in January 2014, the Group has set 
up a Risk Management Committee 
(RMC) to assist the Board in 
overseeing the risk management 
process implemented by 
Management. The RMC comprises 
six members with three independent 
Directors. The committee meets 
at least three times per year. All 
material risks and risk issues are 
reported to the RMC for review. An 
ERM policy, which spells out the 
risk management framework and 
methodology, is developed as part of 
ERM implementation in FCL. 

FCL adopts a robust risk 
management framework to maintain 
a high level of corporate discipline 
and governance. The framework 
links our risk management process 
with the organisation’s strategic 
objectives. Risks are identified and 
assessed, and mitigating measures 
developed to address and manage 
those risks.   

The risk management process is 
integrated and coordinated across 
the businesses of the Group. The 
risk management framework and 
processes apply to all business units 
in the organisation. The ownership 
of risks lies with the heads of 
the respective business units 
who review risks and mitigating 

measures quarterly. Risks that have 
a material impact on the business 
units are identified and assessed. 
The risk exposures and potential 
mitigating measures are tracked in 
a risk register maintained in a 
web-based Corporate Risk 
Scorecard system. Where 
applicable, Key Risk Indicators are 
established to monitor risks.  
For the financial year ended  
30 September 2014, key material 
risks and their associated mitigating 
measures were consolidated at 
the Group level and reported to the 
RMC. Risk tolerance statements, 
which set out the nature and extent 
of the significant risks that the 
Group is willing to take in achieving 
its strategic objectives, are also 
renewed and monitored at the 
Management level and reported to 
the RMC.  

An annual ERM validation is held at 
the Management level. The heads 
of business units provide assurance 
to the Group Chief Executive 
Officer and Chief Financial Officer 
that key risks at the business unit 
level have been identified and the 
associated mitigating measures 
are effective and adequate. The 
result of the ERM validation for the 
financial year ended 30 September 
2014 is reported to the RMC and 
presented at a joint meeting of the 
Audit Committee and the RMC. At 
the ERM validation, Management 
provides assurance that the risk 
management system implemented 
in the Group is adequate and 
effective as at 30 September 2014 
to address risks that are considered 
relevant and material to FCL’s 
operations.

The risk management culture in 
FCL is enhanced through various 
risk management activities 
implemented within the Group. Risk 
awareness briefings are conducted 

for new recruits. During the 
financial year, 19 risk awareness 
sessions were held. Refresher 
sessions are also organised for 
existing staff when required. 
Periodic discussion of risk and risk 
issues are also held at the business 
unit level where emerging risks are 
identified and managed. 

FCL’s ERM system is benchmarked 
against market practice. Control 
self-assessment, which promotes 
accountability and risk ownership, 
is implemented for several key 
processes. The Group also seeks 
to improve its risk management 
processes on an ongoing basis. 
During the financial year, the 
web-based Corporate Risk 
Scorecard system, which provides 
the platform for the Group’s risk 
registers, was upgraded to cater 
to user requirements. The Group 
also implemented a Comfort 
Matrix framework, which provides 
an overview of the mitigating 
measures, and assurance processes 
of key financial, compliance, 
operational (including information 
technology) risks.

KEY RI SKS

Management has been actively 
monitoring the key material risks 
that affect the Group. The following 
are some of the key potential risks 
that FCL is exposed to:

Country Risks (Economic, Political 
and Regulatory Risks)
FCL is exposed to various conditions 
affecting major economies and key 
financial and property markets. 
The risk of adverse changes in the 
global economy can reduce profits, 
result in revaluation losses and 
affect the Group’s ability to sell its 
residential development stock. 

78

FRASERS CENTREPOINT LIMITED & SUBSIDIARIESInconsistent and frequent changes 
in regulatory policies may 
also result in higher operating 
and investment costs, loss in 
productivity and disruptions to 
business operations. 

To mitigate these risks, FCL adopts 
a prudent approach in selecting 
locations for its investment. 
Measures are in place to monitor 
the markets closely, such as 
through maintaining good working 
relationships with local authorities, 
business associations and local 
contacts, and reviewing expert 
opinions and market indicators, to 
keep abreast of economic, political 
and regulatory changes.

Where the need arises, FCL 
will reassess its business and 
marketing plans accordingly. 

Foreign Currency and Interest Rate 
Risks
With worldwide operations, FCL 
is exposed to changes in currency 
exchange rates and interest rates. 
The Group uses derivatives, a mix 
of fixed and floating rate debt with 
varying tenors as well as other 
financial instruments to hedge 
against these risks. Policies and 
processes are in place to facilitate 
the monitoring and management of 
risks in a timely manner. 

Liquidity Risk
To manage the liquidity risk that the 
Group may encounter in meeting 
financial obligations when they fall 
due, FCL maintains sufficient cash 
and procures availability of funding 
through multiple sources to ensure 
that refinancing, repayment and 
funding needs are fulfilled. 

Alexandra Point,  Singapore

79

ANNUAL  REPORT2014C H A N G I   C I T Y   P O I N T

S I N G A P O R E

80

Good corporate governance is essential to the success of Frasers Centrepoint Limited (“FCL” or the “Company”). FCL 
is firmly committed to setting and maintaining high standards of corporate governance and corporate transparency, 
and  adheres  to  sound  corporate  policies,  business  practices  and  a  system  of  internal  controls.  Operating  within 
such a framework allows FCL to safeguard the assets of FCL and its subsidiaries (the “Group”) and shareholders’ 
interests whilst pursuing sustainable growth and enhancement of value for shareholders.

Listed on 9 January 2014 on Singapore Securities Trading Limited (“SGX-ST”), the Company adheres closely to the 
principles and guidelines of the Code of Corporate Governance 2012 (the “Code 2012”) and other applicable laws, 
rules and regulations, including the SGX-ST Listing Manual. 

A.  BOARD MATTE RS   

Principle 1: The Board’s Conduct of Affairs

The Board is entrusted with oversight of the business performance and affairs of FCL, and is responsible for the 
Group’s overall entrepreneurial leadership, strategic direction, performance objectives and long-term success. 

Our Board of Directors1 comprise 10 non-executive Directors, and is well-diversified in terms of gender, age group 
and nationality. They are:

Mr Charoen Sirivadhanabhakdi (Chairman)2
Khunying Wanna Sirivadhanabhakdi (Vice-Chairman)3
Mr Charles Mak Ming Ying4
Mr Chan Heng Wing4, 6
Mr Philip Eng Heng Nee4
Mr Wee Joo Yeow5
Mr Weerawong Chittmittrapap4
Mr Chotiphat Bijananda6
Mr Panote Sirivadhanabhakdi6
Mr Sithichai Chaikriangkrai6

Notes:
1   Mrs Siripen Sitasuwan had been appointed as a non-executive and independent Director on 25 October 2013 and re-appointed to the Board of FCL on  
7 January 2014. She stepped down on 10 March 2014 in line with disclosure made in the Introductory Document dated 28 October 2013 relating to the 
listing of the Company.

2   Mr Charoen Sirivadhanabhakdi was appointed as a non-executive and non-independent Director on 25 October 2013. 
3   Khunying Wanna Sirivadhanabhakdi joined the Board as non-executive and non-independent Director on 7 January 2014. 
4   Mr Charles Mak, Mr Chan Heng Wing, Mr Philip Eng and Mr Weerawong Chittmittrapap were appointed as non-executive and independent Directors on 

25 October 2013.

5   Mr Wee Joo Yeow was appointed as a non-executive and independent Director on 10 March 2014.
6   Mr Chan Heng Wing, Mr Chotiphat Bijananda, Mr Panote Sirivadhanabhakdi, and Mr Sithichai Chaikriangkrai were re-appointed to the Board of FCL at 

the Annual General Meeting held on 7 January 2014.

The Board also reviews annual budgets, financial plans, major acquisitions and divestments, funding and investment 
proposals,  monitors  the  financial  performance  of  the  Group  and  Management’s  performance,  and  ensures 
compliance by the Group with relevant laws and regulations. The Board meets regularly, and during Board meetings, 
our Directors actively participate, discuss, deliberate and appraise matters requiring its attention and decision. Time 
is set aside, where appropriate, after scheduled Board meetings for discussions amongst our Directors without the 
presence of Management, so as to facilitate a more effective check on Management. 

81

annual  report2014CORPORATEGoVernanCeDelegation of Authority on certain Board Matters 

In order for the Board to efficiently provide strategic oversight of FCL, it delegates specific areas of responsibilities 
to  five  Board  Committees  namely,  the  Board  Executive  Committee  (“EXCO”)1,  the  Audit  Committee  (“AC”),  the 
Nominating Committee (“NC”), the Remuneration Committee (“RC”) and the Risk Management Committee (“RMC”). 
Each Board Committee is governed by clear Terms of Reference which have been approved by the Board2. Minutes of 
all Board Committee meetings are circulated to the Board so that Directors are aware of and kept updated as to the 
proceedings and matters discussed during such meetings. 

Notes:
1   The Terms of Reference of the EXCO were updated and approved by the Board and adopted on 25 October 2013.
2  

 The AC, NC, RC and RMC were constituted, and Terms of Reference for each of these Committees were approved by the Board and adopted, on 25 October 
2013. 

The Company adopts a framework of delegated authorisations in its Manual of Authority (“MOA”). The MOA defines 
the procedures and levels of authorisation required for specified transactions. It also sets out approval limits for 
operating  and  capital  expenditure  as  well  as  acquisitions  and  disposals  of  investments.  The  MOA  also  contains 
a schedule of matters specifically reserved to the Board for approval. These include approval of annual budgets, 
financial plans, business strategies and material transactions, such as major acquisitions, divestments, funding and 
investment proposals. The MOA authorises the EXCO to approve certain transactions up to specified limits, beyond 
which  the  approval  of  the  Board  needs  to  be  obtained.  Below  the  Board  and  EXCO  levels,  there  are  appropriate 
delegation of authority and approval sub-limits at Management level, to facilitate operational efficiency. 

To address and manage possible conflicts of interest that may arise between Directors’ interests and those of the 
Group,  the  Company  has  put  in  place  appropriate  procedures  including  requiring  such  Directors  to  refrain  from 
participating in meetings or discussions (or relevant segments thereof), in addition to abstaining from voting, on any 
matter in which they are so interested or conflicted. For purchases of property in FCL property projects, there is also 
a policy which sets out the process and procedure for disclosing, reporting and obtaining of relevant approvals for 
property purchases made by any Director, the CEO or any other interested persons (as defined in the SGX-ST Listing 
Manual) and employees of the Group. 

Board Executive Committee (or EXCO)

The current EXCO is made up of the following members:

Mr Charoen Sirivadhanabhakdi1  
Mr Charles Mak1 
Mr Chotiphat Bijananda1 
Mr Wee Joo Yeow2 
Mr Panote Sirivadhanabhakdi1 
Mr Sithichai Chaikriangkrai1 

Chairman
Vice-Chairman
Vice-Chairman
Member
Member 
Member

Notes:
1  

 Mr Charoen Sirivadhanabhakdi, Mr Charles Mak, Mr Chotiphat Bijananda, Mr Panote Sirivadhanabhakdi and Mr Sithichai Chaikriangkrai were appointed 
to the EXCO on 25 October 2013. 

2   Mr Wee Joo Yeow was appointed to the EXCO on 10 March 2014.

The EXCO assumes oversight of the business affairs of FCL and is empowered to exercise the full powers and authority 
of the Board when the Board does not meet except in respect of matters that specifically require the decision of the 
Board  or  any  Board  Committee.  The  EXCO  formulates  the  FCL  Group’s  strategic  development  initiatives,  provide 
direction for new investments and material financial and non-financial matters to ensure that the Group achieves its 
desired performance objectives and enhances long-term shareholder value, and oversees the Company’s and the 
Group’s conduct of business and corporate governance structure.

The activities and responsibilities of other Board Committees are described in the following sections of this report.

82

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceMeetings of the Board and Board Committees

The  Board  and  its  various  Board  Committees  meet  regularly,  and  also  as  required  by  business  needs  or  if  their 
members deem it necessary or appropriate to do so. For the financial year ended 30 September 2014, the Board met 
11 times. 

The  Directors  are  also  given  direct  access  to  the  Management  team  of  the  Group’s  business  divisions  through 
presentations at Board and Board Committee meetings. Where required or requested by Board members, site visits 
and meetings with personnel from the Group’s business divisions are also arranged in order for Directors to have 
an intimate understanding of the key business operations of each division. The Company’s Articles of Association 
provide for Board members who are unable to attend physical meetings to participate through telephone conference, 
video conference or any other forms of electronic or instantaneous communication facilities.

The number of Board meetings and Board Committee meetings held in the financial year ended 30 September 2014 
and the attendance of Directors at these meetings are as follows:

Board

Board 
EXCO

Audit 
Committee

Risk 
Management 
Committee

Remuneration 
Committee

Nominating 
Committee

Meetings held for the financial year 
ended 30 September 2014
Mr Charoen Sirivadhanabhakdi2
Khunying Wanna Sirivadhanabhakdi3
Mr Charles Mak Ming Ying4
Mr Chan Heng Wing4
Mr Philip Eng Heng Nee4
Mr Wee Joo Yeow5
Mr Weerawong Chittmittrapap4
Mr Chotiphat Bijananda6
Mr Panote Sirivadhanabhakdi6
Mr Sithichai Chaikriangkrai6
Mrs Siripen Sitasuwan7

11
11
9
11
7
9
5
10
10
11
11
4

6
5
–
4
–
–
2
–
5
6
6
–

6
–
–
6
–
6
3
–
–
–
6
2

2
–
–
2
1
–
–
1
2
2
2
–

Nil1
–
–
Nil
–
Nil
–
–
–
Nil
–
–

Nil1
–
–
–
Nil
–
–
Nil
Nil
–
–
–

Notes:
1   Matters during the year requiring the Nominating Committee’s and Remuneration Committee’s approval were dealt with via circular resolutions.
2    Mr Charoen Sirivadhanabhakdi was appointed as a non-executive and non-independent Director on 25 October 2013.
3    Khunying Wanna Sirivadhanabhakdi joined the Board as non-executive and non-independent Director on 7 January 2014. 
4    Mr Charles Mak, Mr Chan Heng Wing, Mr Philip Eng and Mr Weerawong Chittmittrapap were appointed as non-executive and independent Directors on 

25 October 2013.

5    Mr Wee Joo Yeow was appointed as a non-executive and independent Director on 10 March 2014.
6   Mr Chan Heng Wing, Mr Chotiphat Bijananda, Mr Panote Sirivadhanabhakdi, and Mr Sithichai Chaikriangkrai were re-appointed to the Board of FCL at 

the Annual General Meeting held on 7 January 2014.

7   Mrs Siripen Sitasuwan stepped down from the Board and from her respective memberships on the Board Committees of Frasers Centrepoint Limited on 

10 March 2014 in line with the disclosure made in the Introductory Document dated 28 October 2013 relating to the listing of the Company.

Upon  appointment,  each  new  director  is  issued  a  formal  letter  of  appointment  setting  out  his  or  her  duties  and 
obligations, and where appropriate, incorporating processes to deal with possible conflicts of interest that may arise. 
A comprehensive orientation programme is also conducted to familiarise new appointees with the business activities, 
strategic  directions,  policies  and  corporate  governance  practices  of  the  FCL  Group.  This  programme  allows  new 
Directors to get acquainted with senior Management, and also fosters better rapport and facilitate communications 
with Management.

83

annual  report2014CORPORATEGoVernanCeOur Directors are kept continually and regularly updated on the Group’s businesses and the regulatory and industry-
specific environments in which the entities of the Group operate. Updates on relevant legal, regulatory and technical 
developments may be in writing or disseminated by way of briefings, presentations and/or handouts. The Board has 
been briefed and/or updated on the latest key changes to the Companies Act and changes to the Listing Rules. Our 
Directors are also encouraged to be members of the Singapore Institute of Directors (“SID”) and for them to receive 
journal updates and training from SID to stay abreast of relevant developments in financial, legal and regulatory 
requirements, and the business environment and outlook. 

Principle 2: Board Composition and Guidance

Our current Board comprises 10 non-executive Directors, of whom five are independent, namely, Mr Charles Mak, 
Mr Chan Heng Wing, Mr Philip Eng, Mr Wee Joo Yeow and Mr Weerawong Chittmittrapap. Based on declarations of 
independence made by each of these independent Directors, none of them has any relationship with the Company, 
its related corporations1, our 10% shareholders2 or FCL’s officers that could interfere, or be reasonably perceived to 
interfere, with the exercise of each of their independent business judgment with a view to the best interests of the 
Company. These five independent Directors will help to uphold good corporate governance at the Board level and their 
presence will facilitate the exercise of independent and objective judgment on corporate affairs. Their participation 
and  input  will  also  ensure  that  key  issues  and  strategies  are  critically  reviewed,  constructively  challenged,  fully 
discussed and thoroughly examined, and takes into account the long-term interests of FCL and its Shareholders.

Notes:
1   Code 2012 defines “related corporations” as having the same meaning under the Companies Act, Chapter 50 i.e. a corporation that is the company’s 

holding company, subsidiary or fellow subsidiary.

2  Code 2012 defines a ten percent (10%) shareholder as a person who has an interest or interests in one or more voting shares in the company and the total 
votes attached to that share, or those shares, is not less than ten percent (10%) of the total votes attached to all the voting shares in the company. 

The NC is of the view that the current size and composition of the Board is appropriate for the scope and nature 
of the Group’s operations, and facilitates effective decision-making. In line with Code 2012, taking into account the 
requirements of the Group’s businesses and the need to avoid undue disruptions from changes to the composition 
of the Board and Board Committees, the NC is of the view that the current size of the Board is not so large as to 
be  unwieldy,  or  as  would  interfere  with  efficient  decision-making.  No  individual  or  group  dominates  the  Board’s 
decision-making process.   

The Board proactively seeks to maintain an appropriate balance of expertise, skills and attributes among the Directors. 
This is also reflected in the diversity of backgrounds and competencies of our Directors, whose competencies range 
from  banking,  finance,  accounting  and  legal  to  relevant  industry  knowledge,  entrepreneurial  and  management 
experience, and familiarity with regulatory requirements and risk management. This is beneficial to the Company 
and its Management as decisions by, and discussions with, the Board would be enriched by the broad range of views 
and perspectives and the breadth of experience of our Directors. 

The Directors are provided with accurate, complete and timely information and have direct and unrestricted access 
to Management. This gives the Board and Board Committees sufficient time to critically evaluate and consider issues 
relevant to the Company and its businesses and operations, and also allows our Directors to effectively carry out 
their duties and discharge their oversight function.

Principle 3: Chairman and Chief Executive Officer 

The Chairman and the Group Chief Executive Officer (“Group CEO”) of the Company, Mr Lim Ee Seng, are separate 
persons to ensure an appropriate balance and separation of power and authority, and clear division of responsibilities 
and accountability. The Chairman, who is non-executive, is not related to the Group CEO and neither is there any 
business relationship between them. Likewise, none of the chief executive officers of the Group’s business divisions 
and the Group CEO are related to each other, and neither is there any other business relationship between or among 
them.

84

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceThe Chairman leads the Board and ensures its effectiveness by, among other things, steering effective, productive 
and comprehensive discussions amongst Board members and the Management team on strategic, business and 
other key issues pertinent to the business and operations of the Group. In addition, the Chairman promotes a culture 
of openness and debate at the Board and also makes sure, with the support of the Company Secretary, that Directors 
are provided with clear, complete and timely information in order to make sound, informed decisions. 

The Chairman encourages active and effective engagement, participation by and contribution from all Directors, and 
facilitates constructive relations among and between them and Management. With the full support of the Board, 
Company Secretary and Management, the Chairman will spur the Company to promote, attain and maintain highest 
standards of corporate governance and transparency. With the help of FCL’s corporate services, he also sees to it 
that there is overall effective communications to and with Shareholders on the performance of the Group. In turn, 
the CEOs of the Group’s business divisions are responsible for executing the Group’s strategies and policies, and are 
accountable to the Board for the conduct and performance of the respective business operations under their charge. 

Principle 4: Board Membership

The Nominating Committee (or NC)1 is made up of the following Directors: 

Mr Weerawong Chittmittrapap    Chairman
Mr Chan Heng Wing 
Mr Chotiphat Bijananda 

Member
Member 

A majority of the members of this Committee, including the Chairman, are independent non-executive Directors. 

Note:
1 

The NC was constituted on 25 October 2013. 

The NC is guided by written Terms of Reference approved by the Board and which set out the duties and responsibilities 
of this Committee. It is responsible for reviewing the structure, size and composition of the Board, identifying the 
balance of skills, knowledge and experience required for the Board to discharge its responsibilities effectively, and 
for nominated candidates to meet the needs and requirements of the Group. 

The NC will assess from time to time the independence of each Director, the performance of the Board as a whole, 
and  the  contribution  of  each  Director  to  the  effectiveness  of  the  Board.  The  NC  is  also  required  to  determine 
whether Directors who hold multiple board representations are able to and have been devoting sufficient time to 
discharge  their  responsibilities  adequately.  Code  2012  requires  listed  companies  to  fix  the  maximum  number  of 
board representations on other listed companies that their directors may hold and to disclose this in their annual 
report. Details of such directorships and other principal commitments of our Directors may be found on pages 20 
to 24. In determining whether each Director is able to devote sufficient time to discharge his or her duties, the NC 
has taken cognizance of the Code 2012 requirement, but is of the view that its assessment should not be restricted 
to the number of board representations of each Director – and their respective principal commitments – per se. 
Holistically, the contributions by the Directors to and during meetings of the Board and relevant Board Committees 
as well as their attendance at such meetings are also taken into account.

The NC also reviews all nominations for appointments and re-appointments to the Board and to Board Committees, 
and  submits  its  recommendations  for  approval  by  the  Board  taking  into  account  an  appropriate  mix  of  core 
competencies for the Board to fulfill its roles and responsibilities. 

The Committee takes the lead in identifying, evaluating and selecting suitable candidates for new directorships. In its 
search and selection process, the NC considers factors such as the ability of the prospective candidate to contribute 
to  discussions,  deliberations  and  activities  of  the  Board  and  Board  Committees.  It  also  reviews  the  composition 
of the Board – including the mix of expertise, skills and attributes of Directors – so as to identify needed and/or 
desired  competencies  to  supplement  the  Board’s  existing  attributes.  Where  it  deems  necessary  or  appropriate, 
the Committee may tap on its networking contacts and/or engage external professional headhunters to assist with 
identifying and shortlisting candidates.

85

annual  report2014CORPORATEGoVernanCeThe Company’s Articles of Association provides that at least one-third of its Directors shall retire from office and are 
subject to re-election at every Annual General Meeting of the Company (“AGM”). All Directors are required to retire 
from office at least once every three years. The NC will assess and evaluate whether Directors retiring at each AGM 
are  properly  qualified  for  reappointment  by  virtue  of  their  skills,  experience  and  contributions.  Newly-appointed 
Directors during the year must also submit themselves for retirement and re-election at the next AGM immediately 
following their appointment. The Shareholders approve the appointment or re-appointment of Board members at 
the AGM. 

The  NC  determines  the  independence  of  each  Director  annually  based  on  the  definitions  and  guidelines  of 
independence set out in Code 2012. 

For  the  financial  year  ended  30  September  2014,  the  Nominating  Committee  has  performed  a  review  of  the 
independence of the Directors as at 30 September 2014 and following its assessment, has determined the status of 
each Director as follows:

Mr Charoen Sirivadhanabhakdi1 
Khunying Wanna Sirivadhanabhakdi1 
Mr Charles Mak Ming Ying 
Mr Chan Heng Wing 
Mr Philip Eng Heng Nee 
Mr Wee Joo Yeow 
Mr Weerawong Chittmittrapap 
Mr Chotiphat Bijananda2 
Mr Panote Sirivadhanabhakdi3 
Mr Sithichai Chaikriangkrai4 

  Non-Independent
  Non-Independent

Independent
Independent
Independent
Independent
Independent

  Non-Independent
  Non-Independent
  Non-Independent

Notes:
1   Each of Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi are directly or indirectly interested in not less than ten percent (10%) of 
the total voting shares in the Company through their interests in TCC Assets Limited (“TCCA”) and Thai Beverage Public Company Limited (“ThaiBev”). 
TCCA  has  a  direct  interest  of  59.39%  in  the  Company  and  ThaiBev,  through  its  indirect  wholly-owned  subsidiary  InterBev  Investment  Limited,  holds 
28.54% interest in the Company. Mr Charoen Sirivadhanabhakdi is married to Khunying Wanna Sirivadhanabhakdi. 

2   Mr Chotiphat Bijananda is the son-in-law of Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi and a director of TCCA. 
3   Mr Panote Sirivadhanabhakdi being a son of Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi is an immediate family member of 

a ten percent (10%) shareholder of the Company.

4   Mr Sithichai Chaikriangkrai is a Director and the Chief Financial Officer of ThaiBev.

Key Information regarding Directors

Key information on the Directors is set out on pages 20 to 24.

Principle 5: Board Performance

The effectiveness of the Board as a whole and the contribution by each Director to the effectiveness of the Board will 
be assessed annually. 

All Directors will be required to assess the performance of the Board and the Board Committees. The assessment 
will  be  likely  to  cover  areas  such  as  Board  processes,  managing  the  Company’s  performance,  effectiveness  of 
the  Board  Committees,  Director  development  and  management  self-evaluation.  Directors  will  also  be  asked  to 
provide  input  on  issues  which  do  not  fall  under  these  categories,  for  instance,  addressing  specific  areas  where 
improvements can be made. Feedback and comments received from the Directors would then be reviewed by the 
NC,  in  consultation  with  the  Chairman  of  the  Board.  External  consultants  may  also  be  engaged  to  facilitate  the 
formulation and implementation of the Board evaluation process. 

Based on the NC’s review, the Board and the various Board Committees operate effectively and each Director is 
contributing to the overall effectiveness of the Board.

86

Frasers centrepoint limited & subsidiariesCORPORATEGoVernance 
 
 
 
 
  
Principle 6: Access to Information

Management  provides  the  Board  with  detailed  Board  papers  specifying  relevant  information  and  commercial 
rationale  for  each  proposal  for  which  Board  approval  is  sought.  Such  information  includes  relevant  financial 
forecasts, risk analyses, mitigation strategies, feasibility studies and key commercial issues for the Board’s attention 
and consideration. Reports on major operational matters, business development activities, financial performance, 
potential investment opportunities and budgets are circulated to the Board. 

A calendar of activities is scheduled for the Board a year in advance, with Board papers and agenda items dispatched 
to the Directors about a week before scheduled meetings as far as possible. This is to give Directors sufficient time 
to review and consider the matters being tabled and/or discussed so that discussions can be more meaningful and 
productive. Senior Management from the Company’s business divisions is requested to attend meetings of the Board 
and the Board Committees in order to provide input and insight into matters being discussed, and to respond to any 
queries that the Directors may have. The Board also has separate and independent access to the Company’s senior 
Management and the Company Secretary. 

The Company Secretary attends all Board meetings, ensures that Board procedures are complied with, and provides 
advice and guidance on corporate governance, and on legal and regulatory compliance. The Company Secretary also 
facilitates and acts as a channel of communications for the smooth flow of information to and within the Board and its 
various Committees, as well as between and with senior Management. Additionally, the Company Secretary solicits 
and consolidates Directors’ feedback and evaluation from time to time, and arranges for and facilitates orientation 
programmes for new Directors and assists with their professional development as required. The Company Secretary 
is the Company’s primary channel of communication with SGX-ST.

Where it is necessary for the efficacious discharge of their duties, the Directors may seek and obtain independent 
professional advice at the Company’s expense. 

B. R EM UNER ATIO N MATTE RS

Principle 7: Procedures for Developing Remuneration Policies

Remuneration Committee (or RC)

The  RC1  is  made  up  of  non-executive  Directors,  the  majority  of  whom,  including  the  Chairman,  are  independent 
Directors. It comprises the following members:

Mr Philip Eng Heng Nee 
Mr Charles Mak Ming Ying 
Mr Panote Sirivadhanabhakdi 

Chairman
Member
Member

Note: 
1   The RC was constituted on 25 October 2013. 

The RC’s main responsibility is to assist the Board in establishing a formal and transparent process for developing 
policies on executive remuneration and development. The RC also reviews remuneration packages and service terms 
of individual Directors and the Group CEO. When carrying out its duties, the RC reviews and makes recommendations 
on the remuneration framework for the Board and key management personnel. The RC also oversees the framework 
for remuneration for other key Management of the Company. 

The  RC  reviews  the  level  and  mix  of  remuneration  and  benefits  policies  and  practices  of  the  Company,  where 
appropriate,  including  long-term  incentives.  When  conducting  such  reviews,  the  RC  takes  into  account  the 
performance  of  the  Company  and  employees.  It  also  reviews  and  approves  the  framework  for  salary  reviews, 
performance bonus and incentives for key Management of the Group.

87

annual  report2014CORPORATEGoVernanCeThe  RC  will  also  review  and  recommend  to  the  Board  succession  plans  for  key  Management  and  the  leadership 
pipeline for the Company. In doing so, the RC aligns the Group CEO’s leadership – through appropriate remuneration 
and  benefits  policies  and  long-term  incentives  –  with  the  Company’s  strategic  objectives  and  key  challenges. 
Performance targets will also be set for the Group CEO and his performance evaluated yearly.

The  RC  may  from  time  to  time,  and  where  necessary  or  required,  engage  external  consultants  in  framing  the 
remuneration  policy  and  determining  the  level  and  mix  of  remuneration  for  Directors  and  Management.  Among 
other things, this helps the Company to stay competitive in its remuneration packages.

Principle 8: Level and Mix of Remuneration

In recommending the level and mix of remuneration, the RC seeks to build, motivate and retain Directors and key 
Management.  It  ensures  that  competitive  remuneration  policies  and  practices  are  in  place  to  draw  and  motivate 
high-performing executives so as to drive the Group’s businesses to greater growth, efficiency and profitability. In its 
deliberation, the RC takes into consideration industry practices and benchmarks against relevant industry players to 
ensure that its remuneration and employment conditions are competitive. 

The  Company’s  compensation  framework  comprises  fixed  pay  and  short-term  and  long-term  incentives.  The 
Company subscribes to linking executive remuneration to corporate and individual performance, based on an annual 
appraisal  of  employees  and  using  indicators  such  as  core  values,  competencies,  key  result  areas,  performance 
rating, and potential of the employees. Long-term incentive schemes are in place to motivate and reward employees 
and align their interests to maximise long–term Shareholder value. 

Long Term Incentive Plans 

The RC administers the Company’s share-based remuneration incentive plans, namely, the FCL Restricted Share 
Plan (“RSP”) and FCL Performance Share Plan (“PSP”)1.

Note:
1   The FCL RSP and FCL PSP were approved by the Board and adopted on 25 October 2013.

Through the RSP and PSP, the Company seeks to foster a greater ownership culture within the FCL Group by aligning 
more directly the interests of key senior Management and senior executives with the interest of Shareholders, and 
for such employees to participate and share in the Group’s growth and success. 

The  RSP  is  available  to  a  broader  base  of  senior  executives  compared  to  the  PSP.  Its  objectives  are  to  increase 
the Company’s flexibility and effectiveness in its continuing efforts to attract, motivate and retain talented senior 
executives and to reward these executives for the performance of the Company and that of the individual. The PSP 
applies to senior Management in key positions who shoulder the responsibility of the Company’s performance and 
who are able to drive the growth of the Company through superior performance. It serves as further motivation to 
key senior Management in striving for excellence and delivering long-term Shareholder value.

Under the RSP and PSP, the Company grants share-based awards (“Base Awards”) conditional upon pre-determined 
performance  targets  being  met.  These  targets  are  set  by  the  RC  in  its  absolute  discretion  for  the  performance 
conditions to be met over the performance period. The performance period for the RSP and PSP are two years and 
three years respectively. For the RSP, the targets set are the achievement of Attributable Profit Before Fair Value 
Adjustment and Exceptional Items and Return On Capital Employed. 

For the PSP, the pre-set targets are based on Return On Invested Capital, Total Shareholders’ Return Relative to 
FTSE Straits Times Real Estate Index and Absolute Shareholders’ Return as a multiple of Cost of Equity. 

88

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceThe awards represent the right to receive fully paid shares, their equivalent cash value or a combination thereof, free 
of charge, provided certain prescribed performance conditions are met. The final number of shares to be released 
will depend on the achievement of the pre-determined targets at the end of the performance period. If such targets 
are met and/or exceeded, more shares than the Base Awards can be delivered, subject to a maximum percentage 
of the Base Awards. 

The maximum number of Company shares which can be released, when aggregated with the number of new shares 
issued pursuant to the vesting of awards under the RSP and PSP will not exceed ten percent (10%) of the issued 
share capital of the Company.

Senior management participants are required to hold a minimum number of the shares released to them under 
the RSP and PSP to maintain a beneficial ownership stake in the Company for the duration of their employment or 
tenure with the Company. 

In the Introductory Document dated 28 October 2013 for the listing of the Company, it was disclosed that the Company 
may on or after its listing grant replacement FCL Awards (“Replacement FCL Awards”) to certain employees of the 
Group pursuant to the RSP and PSP, in replacement of awards previously granted to them pursuant to the Fraser and 
Neave, Limited Restricted Share Plan and the Fraser and Neave, Limited Performance Share Plan (the “Outstanding 
F&N Awards”). Replacement FCL Awards were granted on 3 October 2014 to replace the Outstanding F&N Awards 
previously granted to employees pursuant to the Fraser and Neave, Limited Share Plans. The first grant under the 
RSP and PSP for the Financial Year 2013/2014 was also made on 3 October 2014. 

Principle 9: Disclosure on Remuneration

Remuneration of Directors and Top Five Key Management Executives 

Information on the remuneration of Directors of the Company and key management executives of the Group for the 
financial year ended 30 September 2014 are set out below. 

Directors of the Company1 
Mr Charoen Sirivadhanabhakdi2
Khunying Wanna Sirivadhanabhakdi3
Mr Charles Mak Ming Ying4
Mr Chan Heng Wing4, 6
Mr Philip Eng Heng Nee4
Mr Wee Joo Yeow5
Mr Weerawong Chittmittrapap4
Mr Chotiphat Bijananda6
Mr Panote Sirivadhanabhakdi6
Mr Sithichai Chaikriangkrai6

Remuneration
S$
–7
–7
197,387
106,226
214,6138
79,892
123,258
163,000 
148,000 
164,000

Notes:
1  Mrs Siripen Sitasuwan had been appointed as a non-executive and independent Director on 25 October 2013 and re-appointed to the Board of FCL on  
7 January 2014. She stepped down on 10 March 2014 in line with the disclosure made in the Introductory Document dated 28 October 2013 relating to the 
listing of the Company. Director fees paid to her amount to $49,589.

2   Mr Charoen Sirivadhanabhakdi was appointed as non-executive and non-independent Director on 25 October 2013.
3   Khunying Wanna Sirivadhanabhakdi was appointed as non-executive and non-independent Director on 7 January 2014.
4   Mr Charles Mak, Mr Chan Heng Wing, Mr Philip Eng and Mr Weerawong Chittmittrapap were appointed as non-executive and independent Directors on 

25 October 2013. 

5   Mr Wee Joo Yeow was appointed as non-executive and independent Director on 10 March 2014.
6   Mr Chan Heng Wing, Mr Chotiphat Bijananda, Mr Panote Sirivadhanabhakdi and Mr Sithichai Chaikriangkrai were re-appointed to the Board of FCL at the 

Annual General Meeting held on 7 January 2014. 

7   Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi waived payment of Directors’ fees due to them.
8  

Includes $76,000 being payment of directors’ fees from FCL’s subsidiary, Frasers Centrepoint Asset Management Ltd.

89

annual  report2014CORPORATEGoVernanCeRemuneration of Group 
CEO for Year Ended  
30 September 2014
Mr Lim Ee Seng

Remuneration
$
4,016,000

Salary
%
35

Bonus
%
30

Allowances
& Benefits
%
2

Long Term
Inc / Benefits
%
33

Remuneration of Key Management 
Executives for Year Ended
30 September 2014
Between $900,001 and $1,150,000
Mr Tang Kok Kai Christopher
Mr Chia Khong Shoong
Mr Choe Peng Sum
Mr Cheang Kok Kheong
Between $650,001 to $900,000
Mr Uten Lohachitpitaks

Salary
%

Bonus
%

Allowances
& Benefits
%

Long Term
Inc / Benefits
%

44
42
42
42

60

26
26
26
25

35

5
5
5
5

5

25
27
27
28

0

Total
%
100

Total
%

100
100
100
100

100

There are no existing or proposed service agreements entered into or to be entered into by the Company or any of 
its subsidiaries with Directors, the Group CEO or other key management executives which provide for compensation 
in the form of stock options, or pension, retirement or other similar benefits, or other benefits, upon termination of 
employment. 

There  are  no  employees  within  the  FCL  Group  who  are  immediate  family  members  of  a  Director,  and  whose 
remuneration exceeds S$50,000 during the year.

Directors’ Fees

The  remuneration  of  non-executive  Directors  takes  into  account  their  level  and  quality  of  contribution  and  their 
respective responsibilities, including attendance and time spent at Board meetings and Board Committee meetings. 
Directors  are  paid  a  basic  fee  and  attendance  fees  for  attending  Board  meetings.  Non-Executive  Directors  who 
perform services through Board Committees are paid additional basic and attendance fees for such services. No 
Director  decides  his  own  fees.  Directors’  fees  will  be  reviewed  periodically  to  benchmark  such  fees  against  the 
amounts paid by listed industry peers. The Company’s Board fee structure during the year is as set out below.

Basic Fee 
($)

Attendance Fee
($)

Board
–  Chairman
–  Member
Audit Committee and Board EXCO
–  Chairman
–  Member
Nominating Committee, Remuneration Committee and Risk Management Committee 
–  Chairman
–  Member

150,000
75,000

50,000
25,000

30,000
15,000

2,000
1,000

2,000
1,000

2,000
1,000

Shareholders’ approval will be sought at the next Annual General Meeting of the Company on 30 January 2015, for 
the payment of the Directors’ fees for the financial year ending 30 September 2015 of up to $2,000,000 (last year: up 
to $1,453,000). 

90

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceC.  ACCOUN TABILITY  AND  AUDI T

Principle 10: Accountability

FCL  prepares  its  financial  statements  in  accordance  with  the  Singapore  Financial  Reporting  Standards  (“SFRS”) 
prescribed  by  the  Accounting  Standards  Council.  The  Board  provides  Shareholders  with  quarterly  and  annual 
financial reports, and releases its quarterly and full year financial results through announcements to the SGX-ST 
and, where appropriate, press releases and media and analysts’ briefings. In communicating and disseminating its 
results, FCL aims to present a balanced and clear assessment of the Group’s performance, position and prospects.

Principle 11: Risk Management and Internal Controls 

The  Company  maintains  a  sound  system  of  risk  management  and  internal  controls  with  a  view  to  safeguard  its 
assets and Shareholders’ interests. 

The AC1, with the assistance of internal and external auditors, reviews and reports to the Board on the adequacy of 
the Company’s system of controls, including financial, operational, compliance controls and information technology, 
established  by  Management.  In  assessing  the  effectiveness  of  internal  controls,  the  AC  ensures  primarily  that 
key  objectives  are  met,  material  assets  are  properly  safeguarded,  fraud  or  errors  in  the  accounting  records  are 
prevented or detected, accounting records are accurate and complete, and reliable financial information is prepared 
in compliance with applicable internal policies, laws and regulations.

Note: 
1 

The AC was constituted on 25 October 2013. 

The importance and emphasis placed by the FCL Group on internal controls is underpinned by the fact that the key 
performance indicators for Management’s performance takes into account the findings of both internal and external 
auditors and the number of unresolved or outstanding issues raised in the process.

Risk Management Committee

The  Board,  through  the  RMC1,  reviews  the  adequacy  of  the  Group’s  risk  management  framework  to  ensure  that 
robust risk management and mitigating controls are in place. The Company has adopted an enterprise-wide risk 
management (“ERM”) framework to enhance its risk management capabilities. Key risks, mitigating measures and 
management actions are continually identified, reviewed and monitored as part of the ERM process. Financial and 
operational key risk indicators are in place to track key risk exposures. Apart from the ERM process, key business 
risks are thoroughly assessed by Management and each significant transaction is comprehensively analysed so that 
Management understands the risks involved before it is embarked upon. 

Note: 
1 

The RMC was constituted on 25 October 2013. 

The RMC oversees the risk management framework and policies of the Group. It is responsible for, among other 
things, reviewing the Group’s risk management strategy, policies, enterprise-wide risk management framework, 
processes and procedures for identifying, measuring, reporting and mitigating key risks in the Group’s businesses 
and operations. In this regard, key risks, findings and recommendations are reported to the Board. Together with the 
AC, the RMC helps to ensure that Management maintains a sound system of risk management and internal controls 
to safeguard the interests of Shareholders and the assets of the Group. Through guidance to and discussions with 
Management, it assists the Board in its determination of the nature and extent of significant risks which the Board 
is willing to take in achieving the Group’s strategic objectives. The meetings of the RMC are attended by the senior 
Management of the Group, and serve as a forum to review and discuss material risks and exposures of the Group’s 
businesses and strategies to mitigate risks. 

91

annual  report2014CORPORATEGoVernanCeThe RMC comprises the following members:

Chairman
Mr Chotiphat Bijananda 
Member
Mr Charles Mak Ming Ying 
Mr Chan Heng Wing 
Member
Mr Weerawong Chittmittrapap  Member
Member
Mr Panote Sirivadhanabhakdi 
Member
Mr Sithichai Chaikriangkrai 

Periodic  updates  are  provided  to  the  RMC  on  the  Group’s  risk  profile.  These  updates  include  an  assessment  of 
the Group’s key risks by major business units, risk categories, and the status and changes in plans undertaken by 
Management to manage key risks.

Using  a  comfort  matrix  of  key  risks,  the  material  financial,  compliance  and  operational  (including  information 
technology)  risks  of  the  Company  have  been  documented  and  presented  against  strategies,  policies,  people, 
processes,  systems,  mechanisms  and  reporting  processes  that  have  been  put  in  place.  The  Management  of  the 
Company  also  carries  out  control  self-assessment  in  key  areas  of  their  respective  businesses  and  operations  to 
evaluate the adequacy and effectiveness of their risk management measures and internal controls.

The Board has received assurance from the CEO and the CFO of the Company that as at 30 September 2014, (a) the 
financial records of the Group have been properly maintained and the financial statements for the year ended 30 
September 2014 give a true and fair view of the Group’s operations and finances; (b) the system of internal controls in 
place for the Group is adequate and effective as at 30 September 2014 to address financial, operational, compliance 
and information technology risks which the Group considers relevant and material to its operations; and (c) the risk 
management system in place for the Group is adequate and effective as at 30 September 2014 to address risks which 
the Group considers relevant and material to its operations.

Based on the internal controls established and maintained by the Group, work performed by internal and external 
auditors, reviews performed by Management and various Board Committees and assurance from the CEO and the 
CFO, the Board, with the concurrence of the Audit Committee, is of the opinion that the Group’s internal controls 
were adequate and effective as at 30 September 2014 to address financial, operational, compliance and information 
technology risks, which the Group considers relevant and material to its operations.

Based on the risk management framework established and assurance from the CEO and the CFO, the Board is of the 
view that the Group’s risk management system was adequate and effective as at 30 September 2014 to address risks 
which the Group considers relevant and material to its operations.

The Board notes that the system of internal controls and risk management provides reasonable, but not absolute, 
assurance that the Group will not be adversely affected by any event that could be reasonably foreseen as it works 
to achieve its business objectives. In this regard, the Board also notes that no system of internal controls and risk 
management can provide absolute assurance against the occurrence of material errors, poor judgment in decision 
making, human error, losses, fraud or other irregularities.

An outline of the Group’s ERM framework is set out on pages 78 to 79.

Principle 12: Audit Committee 

The AC, on behalf of the Board, undertakes the monitoring and review of the system of internal controls. Its main 
responsibilities  are  to  assist  the  Board  in  the  discharge  of  its  oversight  responsibilities  in  the  areas  of  internal 
controls, financial and accounting practices, operational and compliance controls. Significant findings are reported 
to the Board. 

The AC is guided by written Terms of Reference endorsed by the Board and which set out its duties and responsibilities. 
It is duly authorised to investigate any matter within such Terms of Reference, and has full access to and the co-
operation  of  Management,  as  well  as  the  full  discretion  to  invite  any  Director  or  executive  officer  to  attend  its 
meetings. 

92

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceThe AC comprises the following members: 

Mr Charles Mak Ming Ying 
Mr Philip Eng Heng Nee 
Mr Wee Joo Yeow 
Mr Sithichai Chaikriangkrai  

Chairman 
Member
Member
Member 

The  AC  is  made  up  of  non-executive  Directors,  the  majority  of  whom,  including  the  Chairman,  are  independent 
Directors. The members of the AC are appropriately qualified. Their collective wealth of experience and expertise on 
accounting and financial management enables them to discharge their responsibilities competently. The Company 
has committed reasonable resources to enable the Committee to discharge its functions effectively.

During the year, the key activities of the Audit Committee included the following:

• 

• 
• 

• 

• 
• 

• 

• 

Reviewing the quarterly and full-year financial results and related SGX announcements, including significant 
financial reporting issues and assessments, to safeguard the integrity in financial reporting, and to ensure 
compliance with the requirements of the Singapore Financial Reporting Standards.
Approving, on behalf of the Board, the 1st and 3rd Quarter financial results and related SGX-ST announcements
Recommending, for the approval of the Board, the half-year and annual financial results and related SGX-ST 
announcements
Reviewing  and  evaluating  with  internal  and  external  auditors,  the  adequacy  and  effectiveness  of  internal 
control systems, including financial, operational and compliance controls
Reviewing and approving the internal and external audit plans to ensure the adequacy of the audit scope
Reviewing with internal and external auditors, the audit report and their recommendations, and monitoring 
the timely and proper implementation of any required corrective or improvement measures
Reviewing the adequacy and effectiveness of the Group’s internal audit function, including the adequacy of 
internal audit resources and its appropriate standing within the Group
Reviewing  whistle-blowing  investigations  within  the  Group  and  ensuring  appropriate  follow-up  actions,  if 
required

The Committee also meets with internal and external auditors without the presence of Management at least once 
a year to obtain feedback on the competency and adequacy of the finance function and to ascertain if there are any 
material weaknesses or control deficiencies in the Group’s financial reporting and operational systems. In addition, 
periodic updates on changes in accounting standards and treatment are prepared by external auditors and circulated 
to members of the AC.

The  Committee  makes  recommendations  to  the  Board  for  approval  by  shareholders,  the  appointment  and  
re-appointment and removal of the Company’s external auditors. 

During the year, the Audit Committee conducted a review of the scope and results of audit by the incumbent auditors 
and its cost effectiveness, as well as the independence and objectivity of the auditors. It also reviewed all non-audit 
services provided by the incumbent auditors, and the aggregate amount of audit fees paid to them. For details of 
fees payable to the auditors in respect of audit and non-audit services for the year ended 30 September 2014, please 
refer to Note 6 of the Notes to the Financial Statements on page 141. The Audit Committee is satisfied that neither 
their independence nor their objectivity is put at risk, and that they are still able to meet the audit requirements and 
statutory obligations of the Company. It is also satisfied with the aggregate amount of audit fees paid to the auditors. 
Accordingly,  the  Audit  Committee  has  recommended  the  re-appointment  of  the  external  auditors  at  the  Annual 
General Meeting of FCL. In recommending the re-appointment of the auditors, the Audit Committee considered and 
reviewed a variety of factors including the adequacy of resources, experience of supervisory and professional staff to 
be assigned to the audit, and size and complexity of the Group, its businesses and operations. 

93

annual  report2014CORPORATEGoVernanCeWhistle-Blowing Policy 

The Company has in place a Whistle-Blowing Policy. This Policy provides an independent feedback channel through 
which matters of concern about possible improprieties in matters of financial reporting or other matters may be 
raised by employees and any other persons in confidence and in good faith, without fear of reprisal. Details of this 
policy have been disseminated and made available. All matters which are raised are then independently investigated 
and  appropriate  actions  taken.  The  AC  ensures  that  independent  investigations  and  any  appropriate  follow-up 
actions are carried out. 

Principle 13: Internal Audit 

During the financial year ended 30 September 2014, the Internal Audit (“IA”) function for the Company was performed 
by the Internal Audit department of Fraser and Neave, Limited (“F&NL”), FCL’s parent company prior to its listing, 
as part of a transitional arrangement between the Company and F&NL for shared corporate services. On 25 October 
2013,  the  Company  had  entered  into  a  Shared  Services  Agreement  (“SSA”)  with  Fraser  &  Neave  (Singapore)  Pte 
Limited  (“F&NS”),  a  wholly-owned  subsidiary  of  F&NL,  pursuant  to  which  certain  shared  services  (including  IA 
services)  were  provided  by  F&NS  to  the  Company  as  part  of  transitional  arrangements  in  conjunction  with  FCL’s 
listing. It was envisaged that an independent IA department would perform the IA function for the Group (“FCL IA 
Department”) on and after the expiry or termination of the SSA. The FCL IA Department would be responsible for 
conducting objective and independent assessments on the adequacy and quality of the Group’s system of internal 
controls, and the Head of IA for FCL would report directly to the Chairman of the AC and administratively, to the 
Company Secretary.

For  the  financial  year  ended  30  September  2014,  in  performing  IA  services  for  the  Company,  the  IA  department 
adopted and complied with the Standards for the Professional Practice of Internal Auditing set by the Institute of 
Internal Auditors. The Head of the IA department and most of the internal audit staff are members of the Institute 
of Internal Auditors, Singapore. To ensure that the internal audits are effectively performed, it recruits and employs 
suitably qualified staff with the requisite skills and experience. Such staff are given relevant training and development 
opportunities to update their technical knowledge and auditing skills. Key staff members of the IA department also 
received  relevant  technical  training  and  seminars  organised  by  the  Institute  of  Internal  Auditors,  Singapore  and 
other professional bodies. 

The IA department operates within the framework stated in a set of Terms of Reference. During the year, the Head 
of IA department reported directly to the Chairman of the AC. It adopted a risk-based audit methodology to develop 
its audit plans, and its activities were aligned to key risks of the FCL Group. Based on risk assessments performed, 
greater focus and appropriate review intervals were then set for higher risk activities, and material internal controls, 
including compliance with the Company’s policies, procedures and regulatory responsibilities. 

During the year ended 30 September 2014, the IA department conducted its audit reviews based on the approved 
internal audit plans. All audit reports detailing audit findings and recommendations are provided to Management 
who would respond on the actions to be taken. 

Each quarter, the IA Department would submit quarterly reports to the AC on the status of the audit plan and on 
audit findings and actions taken by Management on such findings. Key findings are highlighted at AC meetings for 
discussion  and  follow-up  action.  The  AC  monitors  the  timely  and  proper  implementation  of  required  corrective, 
preventive or improvement measures undertaken by Management. 

The AC is satisfied that the IA department has adequate resources and appropriate standing within the Company to 
perform its functions effectively. 

94

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceD. S HA REH OLDE R R IGH TS  AND  R E S PO NSI B I LI TI ES

Principle 14: Shareholder Rights 

FCL  believes  in  treating  all  shareholders  fairly  and  equitably.  It  aspires  to  keep  all  shareholders  and  other 
stakeholders and analysts in Singapore and beyond informed of its corporate activities, including changes (if any) in 
the Company or its businesses which are likely to materially affect the price or value of its shares, in a timely and 
consistent manner. 

Shareholders  of  FCL  will  be  given  the  opportunity  to  participate  effectively  and  vote  at  general  meetings  of  the 
Company, where relevant rules and procedures governing such meetings (for instance, how to vote) will be clearly 
communicated.

Principle 15: Communication with Shareholders 

The Company prides itself on its high standards of disclosure and corporate transparency. At the Securities Investors 
Association (Singapore) (“SIAS”) 15th Investors’ Choice Awards, FCL was named the Most Transparent Company for 
the New Listings Category. FCL aims to provide fair, relevant, comprehensive and timely information regarding the 
Group’s performance and progress to shareholders and the investment community to enable them to make informed 
investment decisions. The Group’s dedicated Investor Relations (“IR”) team is tasked with and focuses on facilitating 
communications between the Company and its Shareholders, as well as with the investment community.

The  IR  team  communicates  regularly  with  its  Shareholders,  as  well  as  with  the  investment  community,  through 
timely  disclosures  of  material  and  other  pertinent  information,  and  via  forums  such  as  regular  dialogues 
and  announcements  to  SGX-ST.  The  team  also  conducts  roadshows  (together  with  key  senior  Management), 
and  participates  in  investor  seminars  and  conferences  to  keep  the  market  and  investors  apprised  of  the  FCL 
Group’s  corporate  developments  and  financial  performance.  During  the  year,  the  IR  team,  together  with  senior 
Management,  engaged  with  Singapore  and  foreign  investors  at  conferences,  briefings  and  calls,  non-deal 
roadshows as well as one-on-one and group meetings. The aim of such engagements is to provide shareholders 
and  investors  prompt  disclosure  of  relevant  information,  to  enable  them  to  have  a  better  understanding  of  the 
Company’s businesses and performance. The Company makes available all its briefing materials to analysts and 
the media, its financial information, its annual reports and all announcements to the SGX-ST and on its website at  
www.fraserscentrepoint.com, with contact details for investors to channel their comments and queries. 

Further details on IR’s activities and responsibilities during the year can be found in the Investor Relations section of 
the Annual Report on pages 58 to 59. 

As previously disclosed in the Introductory Document, the Company intends to recommend dividends of up to 75% of 
its net profit after tax after considering factors such as its level of cash and reserves, results of operations, business 
prospects, capital requirements and surplus, general financial condition, contractual restrictions, the absence of 
any circumstances which might reduce the amount of reserves available to pay dividends and other factors relevant 
to the Board (including the expected financial performance of FCL). 

Principle 16: Conduct of Shareholder Meetings

The Board supports and encourages active shareholder participation at AGMs as it believes that general meetings 
serve as an opportune forum for shareholders to meet the Board and senior Management, and to interact with them. 

The Company’s Articles of Association allows Shareholders the right to appoint up to two proxies to attend and vote on 
their behalf in shareholders’ meetings. A copy of the Annual Report and notice of AGM are sent to all Shareholders. 
Separate resolutions are proposed on each substantially separate issue at the meeting. Shareholders are given the 
opportunity to raise questions and clarify any issues that they may have relating to the resolutions to be passed.

95

annual  report2014CORPORATEGoVernanCeBoard members and senior Management are present at each Shareholders’ meeting to respond to any questions 
from Shareholders. The Company’s external auditors are also present to address queries about the conduct of audit 
and the preparation and content of the auditors’ report. 

For  greater  transparency,  FCL  has  implemented  electronic  poll  voting  at  AGMs.  This  entails  Shareholders  being 
invited  to  vote  on  each  of  the  resolutions  by  poll,  using  an  electronic  voting  system  (instead  of  voting  by  hands), 
thereby allowing all shareholders present or represented at the meeting to vote on a one share, one vote basis. The 
voting results of all votes cast for, or against, each resolution is then screened at the meeting and announced to 
the SGX-ST after the meeting. FCL will continue to use the electronic poll voting system at the forthcoming Annual 
General Meeting.

Listing Rule 1207 sub-Rule (19) on Dealings in Securities

In  compliance  with  Listing  Rule  1207  sub-Rule  (19)  of  the  SGX-ST  Listing  Manual,  the  Group  issues  quarterly 
reminders to its Directors, officers and employees on the restrictions in dealings in listed securities of the Group 
during the period commencing (i) two weeks prior to the announcement of financial results of each of the first three 
quarters of the financial year, and (ii) one month before the announcement of full year results, and ending on the 
date of such announcements. Directors, officers and employees are also reminded not to trade in listed securities of 
the Group at any time while in possession of unpublished price sensitive information and to refrain from dealing in 
the Group’s securities on short-term considerations.

96

Frasers centrepoint limited & subsidiariesCORPORATEGoVernanceF I N A N C I A L   S T A T E M E N T S

9 8 
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D I R E C T O R S

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I N D E P E N D E N T   A U D I T O R ’ S 
R E P O R T

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C O N S O L I D A T E D   P R O F I T 
S T A T E M E N T

1 0 7 
C O N S O L I D A T E D 
S T A T E M E N T   O F 
C O M P R E H E N S I V E   I N C O M E

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1 0 9 
S T A T E M E N T S   O F 
C H A N G E S   I N   E Q U I T Y

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N O T E S   T O   T H E   F I N A N C I A L 
S T A T E M E N T S

D I R E C T O R S ’   R E P O R T

The directors have pleasure in submitting their report and the audited consolidated financial statements of Frasers 
Centrepoint Limited (the “Company”) and subsidiaries (the “Group”) and the balance sheet and statements of changes 
in equity of the Company for the year ended 30 September 2014.

1.

DIRECTORATE

The directors of the Company in office at the date of this report are:

(Appointed on 25 October 2013)  * 

Mr Charoen Sirivadhanabhakdi (Chairman)
Khunying Wanna Sirivadhanabhakdi (Vice Chairman) (Appointed on 7 January 2014)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Philip Eng Heng Nee
Mr Wee Joo Yeow
Mr Weerawong Chittmittrapap
Mr Chotiphat Bijananda 
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai

(Appointed on 25 October 2013)  *
(Appointed on 25 October 2013)  * #
(Appointed on 25 October 2013)  *
(Appointed on 10 March 2014)
(Appointed on 25 October 2013)  *
#

#

#

Appointed at Extraordinary General Meeting on 25 October 2013.

* 
#  Re-appointed at Annual General Meeting on 7 January 2014.

Mrs Siripen Sitasuwan resigned from the Board on 10 March 2014. The Board places on record its appreciation 
to Mrs Sitasuwan for her past services.

At  the  forthcoming  Annual  General  Meeting,  the  following  directors  will  retire  and,  being  eligible,  offer 
themselves for re-election:

– 

– 

– 

Pursuant to Section 153(6) of the Companies Act, Chapter 50:
•  Mr Charoen Sirivadhanabhakdi
•  Khunying Wanna Sirivadhanabhakdi 

By rotation pursuant to Article 91 of the Company’s Articles of Association:
•  Mr Philip Eng Heng Nee
•  Mr Charles Mak Ming Ying 
•  Mr Weerawong Chittmittrapap 

Pursuant to Article 97 of the Company’s Articles of Association, having been appointed since the last 
Annual General Meeting:
•  Mr Wee Joo Yeow 

2.

ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES AND DEBENTURES

Neither at the end of, nor at any time during, the financial year did there subsist any arrangements to which 
the Company is a party whereby directors of the Company might acquire benefits by means of the acquisition 
of shares in, or debentures of, the Company or any other body corporate, save as disclosed in this report.

98

Frasers centrepoint limited & subsidiaries 
 
 
 
D I R E C T O R S ’   R E P O R T

3.

DIRECTORS' INTERESTS IN SHARES OR DEBENTURES

The directors holding office at the end of the financial year who had interests in the shares in or debentures 
of the Company and its related corporations as recorded in the register required to be kept under Section 
164 of the Companies Act, Chapter 50 are as follows:

Charoen Sirivadhanabhakdi
–

Frasers Centrepoint Limited
•   Ordinary Shares
FCL Treasury Pte. Ltd.
•  S$600,000,000 4.88% Subordinated Perpetual Securities 

–

–

–

–

–

(Series 3) (S$)

Australand Property Group
•   Ordinary Shares
Fraser and Neave, Limited
•   Ordinary Shares
Fraser & Neave Holdings Bhd
•   Ordinary Shares
TCC Assets Limited
•   Ordinary Shares

Khunying Wanna Sirivadhanabhakdi 
–
Frasers Centrepoint Limited
•   Ordinary Shares
FCL Treasury Pte. Ltd.
•  S$600,000,000 4.88% Subordinated Perpetual Securities 

–

–

–

–

–

(Series 3) (S$)

Australand Property Group
•   Ordinary Shares
Fraser and Neave, Limited
•   Ordinary Shares
Fraser & Neave Holdings Bhd
•   Ordinary Shares
TCC Assets Limited
•   Ordinary Shares

OTHER SECURITIES IN 
GROUP COMPANIES

As at 1 Oct 2013
or Date of
Appointment

As at 
30 Sep 
2014

Nil

 2,541,007,768 (1)

Nil

  250,000,000 (2)

Nil

  573,807,176 (3)

  1,301,433,884  1,270,503,884 (4)

203,470,910   203,470,910 (5)

25,000  

25,000

Nil

 2,541,007,768 (1)

Nil

  250,000,000 (2)

Nil

  573,807,176 (3)

  1,301,433,884  1,270,503,884 (4)

203,470,910   203,470,910 (5)

25,000  

25,000

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3. 

DIRECTORS' INTERESTS IN SHARES OR DEBENTURES (CONT’D)

(1)

The acquisition of interest arose from (i) the completion of the distribution of dividend in specie by Fraser and Neave, Limited (“F&N”) of 
all the ordinary shares in the issued share capital of Frasers Centrepoint Limited (the “Company”) to shareholders of F&N, on the basis 
of 2 shares in the Company for each share in F&N held by F&N shareholders; and (ii) the listing of the Company on the Main Board of the 
Singapore Exchange Securities Trading Limited on 9 January 2014 (the “Listing Date”).

Each of Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakdi, owns 50% of the issued and paid-up share capital 
of TCC Assets Limited ("TCCA"), and is therefore deemed to be interested in all of the 1,716,160,124 shares in Frasers Centrepoint Limited 
(“FCL”) in which TCCA has an interest.

Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold a 51% direct interest in Siriwana Company Limited, 
which in turn holds an approximate 45.27% direct interest in Thai Beverage Public Company Limited (“ThaiBev”).

Further, Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold a 100% direct interest in MM Group Limited 
(“MM Group”). MM Group holds a 100% direct interest in each of Maxtop Management Corp. (“Maxtop”), Risen Mark Enterprise Ltd. (“RM”) 
and  Golden  Capital  (Singapore)  Limited  (“GC”).  Maxtop  holds  a  17.23%  direct  interest  in  ThaiBev;  RM  holds  a  3.32%  direct  interest  in 
ThaiBev; and GC holds a 0.06% direct interest in ThaiBev.

ThaiBev holds a 100% direct interest in International Beverage Holdings Limited, which in turn holds a 100% direct interest in InterBev 
Investment  Limited  (“IBIL”).  Each  of  Charoen  Sirivadhanabhakdi  and  Khunying  Wanna  Sirivadhanabhakdi  is  therefore  deemed  to  be 
interested in all of the 824,847,644 shares in FCL in which IBIL has an interest.

TCC Prosperity Limited (“TCCP”) subscribed for S$250 million in aggregate principal amount of perpetual securities issued by FCL Treasury 
Pte. Ltd. on 24 September 2014. Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi own all the shares in TCCP in equal 
shares, and therefore are deemed to be interested in the perpetual securities in which TCCP has an interest.

On 7 July 2014, Frasers Amethyst Pte Ltd, a wholly-owned subsidiary of FCL, made an off-market takeover bid to acquire up to 100% of the 
issued stapled securities of the Australand Property Group (being shares in Australand Holdings Limited and units in Australand Property 
Trust, Australand Property Trust No. 4 and Australand Property Trust No. 5). 

Each  of  Charoen  Sirivadhanabhakdi  and  Khunying  Wanna  Sirivadhanabhakdi  owns  more  than  20%  of  the  issued  and  paid-up  share 
capital of TCCA. TCCA is in turn the majority shareholder of FCL. Accordingly, each of Charoen Sirivadhanabhakdi and Khunying Wanna 
Sirivadhanabhakdi is deemed to be interested in the 573,807,176 stapled securities in which TCCA has an interest held through FCL and its 
subsidiaries as at 30 September 2014. 

(2)

(3) 

(4)

As at 30 September 2014:
– 
– 

TCCA holds 858,080,062 shares in Fraser and Neave, Limited (“F&N”); and
IBIL holds 412,423,822 shares in F&N.

Each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi is therefore deemed to be interested in all of the shares in F&N 
in which TCCA and IBIL have an interest.

(5)

As at 30 September 2014, F&N holds 203,470,910 shares in Fraser & Neave Holdings Bhd.

Therefore, each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi has a deemed interest in all of the shares in Fraser 
& Neave Holdings Bhd in which F&N has an interest.

There  was  no  change  in  any  of  the  abovementioned  interests  between  the  end  of  the  financial  year  and 
21 October 2014.

Except as disclosed in this report, no director who held office at the end of the financial year had interest in 
shares in or debentures of the Company, or its related corporations.

4.

DIRECTORS’ CONTRACTUAL BENEFITS

Since  the  end  of  the  previous  financial  year,  no  director  has  received  or  has  become  entitled  to  receive  a 
benefit required to be disclosed by Section 201(8) of the Companies Act, Chapter 50 by reason of a contract 
made by the Company or a related corporation with the director or with a firm of which he is a member or 
with a company in which he had a substantial financial interest except as disclosed in this report or in the 
financial  statements  of  the  Company  or  of  the  Group,  and  except  that  certain  directors  have  employment 
relations with, or are directors/officers of related corporations and have received remuneration/fees/benefits 
in those capacities.

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5.

SHARE OPTIONS AND SHARE PLANS

(a)  

Share Options

The Company does not have any share option scheme in place.

(b)  

Share Plans

On 25 October 2013, F&N, which was then the sole shareholder of the Company, approved the adoption 
of the FCL Restricted Share Plan (“RSP”) and FCL Performance Share Plan (“PSP”).

The RSP and PSP are administered by the Remuneration Committee which comprises the following 
three non-executive directors who do not participate in the Share Plans:

Mr Philip Eng Heng Nee (Chairman)
Mr Charles Mak Ming Ying
Mr Panote Sirivadhanabhakdi

(c) 

Share Grants Under RSP and PSP

(i) 

Under the RSP and PSP, the Company grants shares to eligible participants annually, referred 
to herein as “RSP Shares” and “PSP Shares”, respectively. The grant (“Base Award”) represents 
the right to receive fully paid shares, their equivalent cash value or combinations thereof, free 
of charge, provided that certain prescribed performance conditions are met. The Remuneration 
Committee that administers this scheme has absolute discretion in the granting of shares under 
the RSP and PSP. The vesting of the RSP Base Award and the PSP Base Award are conditional 
on  the  achievement  of  pre-determined  targets  set  for  a  two-year  performance  period  and  a 
three-year performance period respectively. The final number of RSP Shares and PSP Shares to 
be awarded will be determined at the end of the performance period (“Final Award”). 

The Final Award varies depending on the level of achievement of the pre-determined targets. An 
achievement factor will be applied to the relevant Base Award to determine the final number of 
RSP Shares and PSP Shares (as the case may be) to be awarded. The achievement factor ranges 
from 0% to 150% for RSP and from 0% to 200% for PSP.

At the end of the performance period, 50% of the RSP Shares will be released upon vesting and 
the balance will be released equally over the subsequent two years with fulfillment of service 
requirements.

All PSP Shares will be released to the participants at the end of the three-year performance 
period upon vesting.

Pre-determined targets are set by the Remuneration Committee at their absolute discretion for 
the performance conditions to be met over the performance period. For the RSP, the targets set 
are the achievement of Attributable Profit Before Fair Value Adjustment and Exceptional Items 
(APBE) and Return On Capital Employed (ROCE). For the PSP, the pre-set targets are based on 
Return on Invested Capital (ROIC), Total Shareholders’ Return Relative to Straits Times Index 
and Absolute Shareholders’ Return as a multiple of Cost of Equity.

Senior management participants are required to hold a minimum number of the shares released 
to them under the RSP and PSP to maintain a beneficial ownership stake in the Company for the 
duration of their employment or tenure with the Company.

No awards have been granted to controlling shareholders or their associates, or parent group 
employees under the RSP and PSP.

No awards have been granted to directors of the Company.

No employee has received 5% or more of the total number of shares available/delivered pursuant 
to grants under the RSP and PSP.

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D I R E C T O R S ’   R E P O R T

5.

SHARE OPTIONS AND SHARE PLANS (CONT’D)

(c) 

Share Grants Under RSP and PSP (cont’d)

(ii) 

It was disclosed in the Introductory Document dated 28 October 2013 that the Company may on or after 
the Listing Date, grant Replacement FCL Awards pursuant to the RSP and PSP to certain employees 
of our Group in replacement of awards previously granted to them pursuant to the Fraser and Neave, 
Limited  Restricted  Share  Plan  and  the  Fraser  and  Neave,  Limited  Performance  Share  Plan  (the 
“Outstanding F&N Awards”).

Replacement FCL Awards were granted on 3 October 2014 to replace the Outstanding F&N Awards 
previously granted to FCL Employees pursuant to the Fraser and Neave, Limited Share Plans.

The first grant of RSP and PSP for the FY 2014 was also made on 3 October 2014.

RSP Shares

Conversion / Grant Date

Balance as at Conversion  
or Grant Date

Replacement FCL Awards*
2014 (Year 1) Award

3 October 2014
3 October 2014

7,100,182
4,052,698
11,152,880

* 

The Replacement FCL Awards were granted to replace the 1,844,401 Outstanding F&N Awards.

PSP Shares

Conversion / Grant Date

Balance as at Conversion  
or Grant Date

Replacement FCL Awards**
2014 (Year 1) Award

3 October 2014
3 October 2014

1,200,527
667,839
1,868,366

**  The Replacement FCL Awards were granted to replace the 370,246 Outstanding F&N Awards.

6.

AUDIT COMMITTEE

At a series of meetings convened during the twelve months up to the date of this report, the Audit Committee 
reviewed  reports  prepared  respectively  by  the  external  and  the  internal  auditors  and  approved  proposals 
for improvement in internal controls. The announcement of quarterly results and the financial statements 
of the Company and of the Group and the audit report thereon for the full year were also reviewed prior to 
consideration and approval of the Board.

The Audit Committee has nominated Ernst & Young LLP for re-appointment by shareholders as auditor for 
the ensuing financial year.

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7.

AUDITOR

Ernst & Young LLP, have expressed their willingness to accept re-appointment as auditor and a resolution 
proposing their appointment will be submitted at the Annual General Meeting.

On behalf of the Board

Charles Mak Ming Ying
Director

Singapore
12 November 2014

Sithichai Chaikriangkrai
Director

103

annual  report2014S T A T E M E N T   B Y   D I R E C T O R S

We,  Charles  Mak  Ming  Ying  and  Sithichai  Chaikriangkrai,  being  two  of  the  Directors  of  FRASERS  CENTREPOINT 
LIMITED, do hereby state that in the opinion of the Directors:

(i) 

the  balance  sheets,  consolidated  profit  statement,  consolidated  statement  of  comprehensive  income, 
statements of changes in equity, and consolidated cash flow statement together with the notes thereto are 
drawn up so as to give a true and fair view of the state of affairs of the Company and of the Group as at 30 
September 2014 and of the results of the business, changes in equity and cash flow of the Group and the 
changes in equity of the Company for the year ended 30 September 2014; and

(ii) 

at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its 
debts as and when they fall due.

On behalf of the Board

Charles Mak Ming Ying
Director

Singapore 
12 November 2014

Sithichai Chaikriangkrai
Director

104

Frasers centrepoint limited & subsidiariesI N D E P E N D E N T   A U D I T O R ’ S   R E P O R T

T O   T H E   M E M B E R S   O F   F R A S E R S   C E N T R E P O I N T   L I M I T E D

REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

We  have  audited  the  accompanying  consolidated  financial  statements  of  Frasers  Centrepoint  Limited  (the 
“Company”) and its subsidiaries (the “Group”), which comprise the balance sheets of the Group and the Company as 
at 30 September 2014, the statements of changes in equity of the Group and the Company and the consolidated profit 
statement, consolidated statement of comprehensive income and consolidated cash flow statement of the Group for 
the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of consolidated financial statements that give a true and fair view 
in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial 
Reporting  Standards,  and  for  devising  and  maintaining  a  system  of  internal  accounting  controls  sufficient  to 
provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and 
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and 
fair profit and loss accounts and balance sheets and to maintain accountability of assets.

AUDITOR’S RESPONSIBILITY

Our  responsibility  is  to  express  an  opinion  on  these  consolidated  financial  statements  based  on  our  audit.  We 
conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply 
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated 
financial statements are free from material misstatement.

An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and  disclosures  in  the 
consolidated  financial  statements.  The  procedures  selected  depend  on  the  auditor’s  judgement,  including  the 
assessment of the risk of material misstatement of the consolidated financial statements, whether due to fraud or 
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 
of  consolidated  financial  statements  that  give  a  true  and  fair  view  in  order  to  design  audit  procedures  that  are 
appropriate  in  the  circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness  of  the 
entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the 
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the 
consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 
opinion.

OPINION

In our opinion, the consolidated financial statements of the Group and the balance sheet and statement of changes 
in equity of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial 
Reporting Standards so as to give a true and fair view of the state of affairs of the Group and the Company as at 
30 September 2014 and the results, changes in equity and cash flow of the Group and the changes in equity of the 
Company for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In  our  opinion,  the  accounting  and  other  records  required  by  the  Act  to  be  kept  by  the  Company  and  by  those 
subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the 
provisions of the Act. 

ERNST & YOUNG LLP
Public Accountants and Chartered Accountants

Singapore
12 November 2014

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annual  report2014C O N S O L I D A T E D   P R O F I T   S T A T E M E N T 

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4

REVENUE
Cost of sales

GROSS PROFIT
Other income/(losses)
Other items of expenses
Operating costs
Marketing costs
Administrative costs

TOTAL COSTS AND EXPENSES

Note

3
4

5

Group

2014
$'000

2013
$'000

2,734,911
(1,704,708)

2,052,749
(1,241,094)

1,030,203
(3,330)

811,655
(2,561)

(195,880)
(63,169)
(131,296)

(144,771)
(60,599)
(92,122)

(390,345)

(297,492)

TRADING PROFIT
Share of results of associates and equity – accounted entities
Investment income

6
18(a)
7

636,528
52,532
302

511,602
59,536
–

PROFIT BEFORE INTEREST, FAIR VALUE CHANGE,
   TAXATION AND EXCEPTIONAL ITEMS

Interest income
Interest expense

NET INTEREST COST

PROFIT BEFORE FAIR VALUE CHANGE,
   TAXATION AND EXCEPTIONAL ITEMS
Fair value change on investment properties
Share of associates’ fair value change on investment properties

PROFIT BEFORE TAXATION AND EXCEPTIONAL ITEMS
Exceptional items

PROFIT BEFORE TAXATION
Taxation

PROFIT FOR THE YEAR

ATTRIBUTABLE TO:
Shareholders of the Company
 – before fair value change and exceptional items
 – fair value change
 – exceptional items

Non-controlling interests

PROFIT FOR THE YEAR
EARNINGS PER SHARE

The accompanying Notes form an integral part of the Financial Statements.

106

689,362

571,138

31,645
(42,950)

18,459
(79,428)

(11,305)

(60,969)

678,057
80,362
58,128

816,547
(119,787)

510,169
165,883
109,860

785,912
46,409

696,760
(155,513)

832,321
(96,583)

541,247

735,738

500,995
126,177
(126,461)
500,711
40,536

541,247
20.4¢

401,080
275,682
45,541
722,303
13,435

735,738
95.9¢

8
9

14
18(a)

10

11

12

Frasers centrepoint limited & subsidiariesC O N S O L I D A T E D   S T A T E M E N T   O F   C O M P R E H E N S I V E   I N C O M E

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4

PROFIT FOR THE YEAR

OTHER COMPREHENSIVE INCOME, NET OF TAX

Items that may be reclassified subsequently to profit statement:
Fair value change of cash flow hedges
Fair value change of available-for-sale financial assets
Foreign currency translation reserve:
   – exchange difference on consolidation
Share of other comprehensive income of associates
   and equity – accounted entities

Other comprehensive income for the year, net of tax

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

ATTRIBUTABLE TO:
Shareholders of the Company
Non-controlling interests

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Group

2014
$'000

2013
$'000

541,247

735,738

3,423
–

5,517
(34,900)

(81,286)

(17,126)

(3,468)

(15,049)

(81,331)

(61,558)

459,916

674,180

421,582
38,334

668,859
5,321

459,916

674,180

The accompanying Notes form an integral part of the Financial Statements.

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A S   A T   3 0   S E P T E M B E R   2 0 1 4

NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
   –  subsidiaries
   –  joint ventures
   –  associates and equity – accounted entities
Financial assets
Intangible assets
Other long-term assets
Prepayments
Other receivables
Deferred tax assets
Derivative financial instruments

CURRENT ASSETS
Prepaid land and development costs
Other prepayments
Inventory
Trade and other receivables
Properties held for sale
Derivative financial instruments
Cash and cash equivalents

TOTAL ASSETS

CURRENT LIABILITIES
Derivative financial instruments
Trade and other payables
Provision for taxation
Loans and borrowings

NET CURRENT ASSETS

NON-CURRENT LIABILITIES
Deferred tax liabilities
Derivative financial instruments
Other payables
Loans and borrowings

NET ASSETS

SHARE CAPITAL AND RESERVES
Share capital
Retained earnings
Other reserves
Equity attributable to Owners of the Company
NON-CONTROLLING INTERESTS –
  PERPETUAL SECURITIES

NON-CONTROLLING INTERESTS – OTHERS
TOTAL EQUITY

Group

2014
$'000

2013
$'000

Note

14
15

6,822,331
279,300

3,115,234
31,599

16
17
18
19
20(a)
20(b)
21
22
23
25

21
21

22
24
25
26

25
27

28

23
25
27
28

29

30

32

–
–
1,499,055
2,164
510,450
148,432
10,141
245,565
111,983
2,080
9,631,501

480,244
31,292
4,195
751,537
5,079,495
29,623
883,604
7,259,990
16,891,491

7,358
1,620,392
181,365
1,493,767
3,302,882
3,957,108
13,588,609

174,063
7,979
196,184
6,122,608
6,500,834
7,087,775

1,753,977
4,565,577
115,995
6,435,549

597,654
7,033,203
54,572
7,087,775

–
–
1,055,983
2,164
64,478
43,200
–
168,104
2,937
–
4,483,699

398,033
11,901
3,578
302,763
4,737,053
1,478
506,784
5,961,590
10,445,289

3,232
1,725,158
112,674
629,135
2,470,199
3,491,391
7,975,090

117,928
3,059
1,200,444
1,175,373
2,496,804
5,478,286

1,083,977
4,363,384
3,725
5,451,086

–
5,451,086
27,200
5,478,286

Company

2014
$'000

1,600
–

1,609,043
500
–
2,148
–
–
–
2,522,213
–
–
4,135,504

–
22
–
721,626
–
254
86,537
808,439
4,943,943

6,098
132,542
10,114
–
148,754
659,685
4,795,189

–
227
634,291
–
634,518
4,160,671

1,753,977
2,212,590
194,104
4,160,671

–
4,160,671
–
4,160,671

2013
$'000

1,650
1

1,556,627
500
–
2,148
–
–
–
1,710,382
–
–
3,271,308

–
49
–
562,097
–
1,478
28,426
592,050
3,863,358

2,163
538,776
11,767
–
552,706
39,344
3,310,652

–
698
725,478
–
726,176
2,584,476

1,083,977
1,499,588
911
2,584,476

–
2,584,476
–
2,584,476

The accompanying Notes form an integral part of the Financial Statements.

108

Frasers centrepoint limited & subsidiariesS T A T E M E N T S   O F   C H A N G E S   I N   E Q U I T Y 

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4

Attributable to Owners of the Company

Share 
Capital
(Note 29)
$'000

Retained 
Earnings
$'000

Other 
Reserves
(Note 30)
$'000

Equity 
Attributable
to Owners 
of the 
Company,
Total
$'000

Non-
Controlling 
Interest –
Perpetual
Securities
(Note 32)
$'000

Non-
Controlling
Interests –
Others
$'000

Total
$'000

Total
Equity
$'000

1,083,977
–

4,363,384
500,711

3,725
–

5,451,086
500,711

– 5,451,086
500,711
–

27,200 5,478,286
541,247
40,536

–
–

–

–

–

–
–

–

–

3,242
(78,903)

3,242
(78,903)

(3,468)

(3,468)

(79,129)

(79,129)

500,711

(79,129)

421,582

–
–

–

–

–

3,242
(78,903)

181
(2,383)

3,423
(81,286)

(3,468)

–

(3,468)

(79,129)

(2,202)

(81,331)

421,582

38,334

459,916

Group
2014

Opening balance at
1 October 2013
Profit for the year

Other comprehensive income
Net fair value change of cash

flow hedges

Foreign currency translation
Share of other comprehensive

income of associates

Other comprehensive income

for the year

Total comprehensive income

for the year

Contributions by and

distributions to owners

Ordinary shares issued during

the year

1,000,000

–

–

1,000,000

– 1,000,000

– 1,000,000

Preference shares redeemed

during the year

Employee share-based expense
Dividend paid (Note 33)
Dividend proposed (Note 33)
Total contributions by and
distributions to owners

Changes in ownership interests
in subsidiaries and associates

Redemption of non-controlling
interest's preference shares
Shares issued to non-controlling

interest

Total changes in ownership

interests in subsidiaries and 
associates

Total transactions with owners
in their capacity as owners

Contributions by and distributions
to perpetual securities holders

Issue of perpetual securities
Total contributions by and

distributions to perpetual
securities holders

Closing balance at

30 September 2014

(330,000)
–
–
–

–
–
(119,350)
(179,168)

–
12,231
–
179,168

(330,000)
12,231
(119,350)
–

670,000

(298,518)

191,399

562,881

–

–

–

–

–

–

–

–

–

–

–

–

670,000

(298,518)

191,399

562,881

–
–
–
–

–

–

–

–

–

(330,000)
12,231
(119,350)
–

–
–
(5,707)
–

(330,000)
12,231
(125,057)
–

562,881

(5,707)

557,174

–

–

–

(5,455)

(5,455)

200

200

(5,255)

(5,255)

562,881

(10,962)

551,919

–

–

–

–

–

–

–

–

597,654

597,654

597,654

597,654

–

–

597,654

597,654

1,753,977

4,565,577

115,995

6,435,549

597,654 7,033,203

54,572 7,087,775

The accompanying Notes form an integral part of the Financial Statements.

109

annual  report2014S T A T E M E N T S   O F   C H A N G E S   I N   E Q U I T Y

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4   ( C O N T ’ D )

Attributable to Owners of the Company

Share
 Capital
(Note 29)
$'000

Retained
 Earnings
$'000

Other
 Reserves
(Note 30)
$'000

Equity
 Attributable
to Owners
 of the
 Company,
Total
$'000

Non-
Controlling
Interests
$'000

Total
Equity
$'000

Group
2013

Opening balance at 1 October 2012
Profit for the year

1,083,977
–

3,791,081
722,303

57,169
–

4,932,227
722,303

23,442
13,435

4,955,669
735,738

Other comprehensive income
Net fair value change of cash flow hedges
Foreign currency translation
Realisation upon disposal of

available-for-sale financial assets
Share of other comprehensive income

of associates

Other comprehensive income for the year
Total comprehensive income for the year

Contributions by and distributions to owners
Dividends paid (Note 33)
Total contributions by and distributions  

to owners

Changes in ownership interests in

subsidiaries and associates

Shares issued to non-controlling interests
Redemption of non-controlling interest's

preference shares

Total changes in ownership interests

in subsidiaries and associates

Total transactions with owners in their

capacity as owners

–
–

–

–
–
–

–

–

–

–

–

–

–
–

–

5,278
(8,773)

5,278
(8,773)

239
(8,353)

5,517
(17,126)

(34,900)

(34,900)

–

(34,900)

–
–
722,303

(15,049)
(53,444)
(53,444)

(15,049)
(53,444)
668,859

–
(8,114)
5,321

(15,049)
(61,558)
674,180

(150,000)

(150,000)

–

–

–

(150,000)

–

–

–

–

–

–

(150,000)

(1,268)

(151,268)

(150,000)

(1,268)

(151,268)

–

–

–

300

(595)

(295)

300

(595)

(295)

(150,000)

(1,563)

(151,563)

Closing balance at 30 September 2013

1,083,977

4,363,384

3,725

5,451,086

27,200

5,478,286

The accompanying Notes form an integral part of the Financial Statements.

110

Frasers centrepoint limited & subsidiaries 
S T A T E M E N T S   O F   C H A N G E S   I N   E Q U I T Y

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4   ( C O N T ’ D )

Share
Capital
(Note 29)
$'000

Retaining
Earnings
$'000

Other
Reserves,
Total
$'000

Hedging
Reserve
$'000

Share-based
Compensation
Reserve
$'000

Dividend
Reserve
$'000

Total 
Equity
$'000

Company
2014

Opening balance at 1 October 2013
Profit for the year

1,083,977 1,499,588
– 1,011,520

911
–

911
–

Other comprehensive income
Net fair value change of cash flow 

hedges

Other comprehensive income for
   the year

Total comprehensive income for

the year

Contributions by and distributions
   to owners
Employee share-based expenses
Ordinary shares issued during the year
Preference shares redeemed during
   the year
Dividend paid (Note 33)
Dividend proposed (Note 33)

Total transactions with owners in
   their capacity as owners
Closing balance 
  at 30 September 2014

–

–

–

–

1,825

1,825

1,825

1,825

– 1,011,520

1,825

1,825

–
–

–

–

–

– 2,584,476
– 1,011,520

–

–

1,825

1,825

– 1,013,345

–
1,000,000

–
–

12,200
–

(330,000)
–
–

–
(119,350)
(179,168)

–
–
179,168

670,000

(298,518)

191,368

–
–

–
–
–

–

12,200
–

–
12,200
– 1,000,000

–
–
–

–
–
179,168

(330,000)
(119,350)
–

12,200

179,168

562,850

1,753,977 2,212,590

194,104

2,736

12,200

179,168 4,160,671

The accompanying Notes form an integral part of the Financial Statements.

111

annual  report2014 
S T A T E M E N T S   O F   C H A N G E S   I N   E Q U I T Y

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4   ( C O N T ’ D )

Share
Capital
(Note 29)
$'000

Retained
Earnings
$'000

Other 
Reserves,
Total
$'000

Hedging
Reserve
$'000

Fair Value
Adjustment
Reserve
$'000

Asset
Revaluation
Reserve
$'000

Total
Equity
$'000

Company
2013

Opening balance at 1 October 2012
Profit for the year

1,083,977
–

430,818
211,656

1,038,293
–

(3,721)
–

34,900
–

1,007,114
–

2,553,088
211,656

Other comprehensive income
Net fair value change of cash flow
   hedges
Realisation upon disposal of
   available-for-sale financial assets

Other comprehensive income for
   the year

Total comprehensive income for
   the year

Contributions by and distributions
   to owners
Dividend paid (Note 33)
Transfer of reserves*
Total transactions with owners in
   their capacity as owners
Closing balance 
  at 30 September 2013

–

–

–

–

–
–

–

–

–

–

4,632

4,632

–

(34,900)

–

(34,900)

(30,268)

4,632

(34,900)

211,656

(30,268)

4,632

(34,900)

–

–

–

–

4,632

(34,900)

(30,268)

181,388

–
(150,000)
1,007,114 (1,007,114)

857,114 (1,007,114)

–
–

–

1,083,977

1,499,588

911

911

–
–

–

–

–
(1,007,114)

(150,000)
–

(1,007,114)

(150,000)

–

2,584,476

* 

The transfer from Asset Revaluation Reserve to Retained Earnings relates to the revaluation reserve on investments. 

The accompanying Notes form an integral part of the Financial Statements.

112

Frasers centrepoint limited & subsidiariesC O N S O L I D A T E D   C A S H   F L O W   S T A T E M E N T

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4

CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation and exceptional items
Adjustments for:

Development profit
Write-down to net realisable value of properties held for sale
Fair value change on investment properties
Share of associates' fair value change on investment properties
Depreciation of property, plant and equipment
Loss on disposal of property, plant and equipment
Amortisation of intangible assets
Employee share-based expense
Share of results of associates and equity – accounted entities
Mark-to-market (losses)/gains on derivatives
Write-back of provision for impairment of an associate
Interest expense
Interest income
Exchange difference

Operating cash flow before working capital changes
Progress payments received from sale of residential units
Development expenditure – properties held for sale
Payment of land premium
Change in prepaid project costs
Change in rental deposits
Change in inventory
Change in trade and other receivables
Change in trade and other payables
Change in joint ventures and associates' balances
Change in related companies' balances

Cash generated from/(used in) operations
Interest expense paid
Interest income received
Income taxes paid

Group

2014
$'000

2013
$'000

Note

816,547

785,912

5
20(a)

5
7
9
8

(516,725)
4,199
(80,362)
(58,128)
8,199
2,820
538
5,259
(52,532)
(1,490)
(177)
42,950
(31,645)
8,573

148,026
1,956,163
(925,183)
(163,952)
(281,652)
(4,681)
1,212
(242,214)
316,226
(19,176)
(658,358)

126,411
(31,092)
29,561
(77,755)

(408,711)
8,452
(165,883)
(109,860)
7,655
625
498
5,384
(59,536)
3,922
–
79,428
(18,459)
24,925

154,352
1,282,779
(996,030)
(256,054)
(398,033)
632
597
(31,687)
65,864
6,585
6,521

(164,474)
(78,485)
27,098
(87,017)

Net cash generated from/(used in) operating activities

47,125

(302,878)

The accompanying Notes form an integral part of the Financial Statements.

113

annual  report2014C O N S O L I D A T E D   C A S H   F L O W   S T A T E M E N T

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4   ( C O N T ’ D )

CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from disposal of available-for-sale financial assets
Proceeds from disposal of investment property
Development expenditure – investment properties under construction
Purchase of property, plant and equipment
Payment of land premium for investment properties
Additions of investment properties
Purchase of intangible assets
Cost incurred on acquisition of subsidiary
Acquisition of subsidiaries, net of cash acquired
Investment in associates
Redemption of Series A CPPUs
Repayment by/(loans to) associates
Loans to joint ventures
Dividend income from available-for-sale financial assets
Dividend income from associates

Net cash (used in)/generated from investing activities

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of new shares by subsidiary to non-controlling interests
Redemption of non-controlling interest's preference shares
Proceeds from bank loans drawn down
Repayment of bank loans
Repayment of long-term loans to a related company
Write off of Part Consideration of the Loans
Proceeds from issue of new shares
Redemption of preference shares
Proceeds from issue of perpetual securities
Payment of dividends by a subsidiary to non-controlling interest
Payment of dividends to shareholders

Group

2014
$'000

2013
$'000

–
527,956
(24,250)
(8,691)
(698,083)
(35,669)
(162)
(69,475)
(3,140,349)
(307,520)
–
19,598
(3,927)
125
55,510

60,709
–
(13,329)
(5,364)
–
(83,784)
(143)
–
–
(34,114)
306,158
(71,688)
–
–
61,068

(3,684,937)

219,513

200
(5,455)
5,137,622
(1,022,546)
(1,197,275)
(41,776)
1,000,000
(330,000)
597,654
(5,707)
(119,350)

300
(595)
591,924
(356,426)
(697,045)
–
–
–
–
–
(151,268)

Note

15

14
20(a)

16

7

27
27
29
29
32
33
33

Net cash generated from/(used in) financing activities

4,013,367

(613,110)

Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate on opening cash

375,555
502,609
–

(696,475)
1,202,222
(3,138)

Cash and cash equivalents at end of year

26

878,164

502,609

The accompanying Notes form an integral part of the Financial Statements.

114

Frasers centrepoint limited & subsidiariesC O N S O L I D A T E D   C A S H   F L O W   S T A T E M E N T

F O R   T H E   Y E A R   E N D E D   3 0   S E P T E M B E R   2 0 1 4   ( C O N T ’ D )

Group

2014
$'000

2013
$'000

Analysis of Acquisitions of Subsidiaries

Net assets acquired
Investment properties
Property, plant and equipment
Investment in equity – accounted entities
Intangible assets
Properties held for sale
Current assets
Current liabilities
Non-current liabilities
Cash and cash equivalents

Total identifiable net assets at fair value
Net goodwill arising from acquisition

Consideration paid in cash
Cash and cash equivalents of subsidiaries acquired

Cashflow on acquisition net of cash and cash equivalents acquired

2,837,769
264,248
115,827
23,569
1,616,052
217,870
(455,690)
(1,915,616)
142,292

2,846,321
436,320

3,282,641
(142,292)

3,140,349

The accompanying Notes form an integral part of the Financial Statements.

–
–
–
–
–
–
–
–
–

–
–

–
–

–

115

annual  report2014These notes form an integral part of the financial statements:

1. 

CORPO RATE  INFO RM AT IO N

Frasers  Centrepoint  Limited  (the  “Company”)  is  a  limited  liability  company  incorporated  and  domiciled  in 
Singapore. On 9 January 2014, the Company commenced trading on the Main Board of the Singapore Exchange 
Securities Trading Limited (“SGX-ST”) by way of introduction. TCC Assets Limited, incorporated in the British 
Virgin Islands, became the immediate and ultimate holding company. 

The registered office and principal place of business of the Company is located at 438 Alexandra Road, #21-00 
Alexandra Point, Singapore 119958.

The principal activity of the Company is investment holding.

The principal activities of the significant subsidiaries, joint ventures and associates are set out in Note 43.

Related companies in the financial statements refer to Frasers Centrepoint Limited group of companies and 
the entities related to the shareholders of TCC Assets Limited.

2. 

SUMMAR Y O F S IGNIF ICAN T AC C OUNTI NG POL ICI ES

2.1  Basis of Preparation

The complete set of consolidated financial statements of the Company and its subsidiaries (collectively, the 
“Group”), are prepared in accordance with Singapore Financial Reporting Standards.

The consolidated financial statements of the Group and the balance sheet and statement of changes in equity 
of the Company are prepared on the historical cost basis except as disclosed in the accounting policies below.

The financial statements are presented in Singapore Dollars (“$” or “S$”). All financial information presented 
in Singapore Dollars has been rounded to the nearest thousand, unless otherwise stated.

The Group and the Company have applied the same accounting policies and methods of computation in the 
preparation of the financial statements for the current financial year and are consistent with those used in the 
previous financial year, except as disclosed below.

(a)  Adoption of New and Revised Standards

In the current year, the Group has adopted the following standards that are relevant and effective for 
financial years beginning on or after 1 October 2013:

Amendments to FRS 1
Revised FRS 19
FRS 113
Amendments to FRS 107
Improvements to FRSs 2012:
–  Amendments to FRS 1
–  Amendments to FRS 16
–  Amendments to FRS 32

Presentation of Items of Other Comprehensive Income
Employee Benefits
Fair Value Measurement
Disclosures – Offsetting Financial Assets and Financial Liabilities

Presentation of Financial Statements
Property, Plant and Equipment
Financial Instruments : Presentation

116

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
2.  

SUMMAR Y O F S IGNIF ICAN T AC C OUNTI NG POL ICI ES ( CO NT’D)

2.1  Basis of Preparation (cont’d)

(a)  Adoption of New and Revised Standards (cont’d)

The adoption of the above standards did not result in any substantial change to the Group’s accounting 
policies nor any significant impact on the financial statements, except for the following:

(i) 

Amendments to FRS 1 Presentation of Items of Other Comprehensive Income

The  Amendments  to  FRS  1  change  the  grouping  of  items  presented  in  other  comprehensive 
income.  Items  that  could  be  reclassified  to  profit  statement  at  a  future  point  in  time  would 
be presented separately from items which will never be reclassified. As the amendments only 
affect the presentations of items that are already recognised in other comprehensive income, 
there is no impact on the Group’s financial position and financial performance upon adoption of 
these amendments.

(ii) 

FRS 113 Fair Value Measurement

FRS 113 provides a single source of guidance for all fair value measurements. FRS 113 does 
not change when an entity is required to use fair value, but rather provides guidance on how to 
measure fair value under FRS when fair value is required or permitted by FRS. The Group has 
applied the new fair value measurement guidance prospectively. The change had no significant 
impact on the measurements of the Group’s assets and liabilities. The additional disclosures as 
a result of the adoption of this standard have been included in Note 37. 

2.2  Significant Accounting Judgements and Estimates

The preparation of the Group’s consolidated financial statements in conformity with FRS requires management 
to make judgements, estimates and assumptions that affect the application of accounting policies and the 
reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities at 
the balance sheet date. The estimates and associated assumptions are based on historical experience and 
various other factors that are believed to be reasonable under the circumstances, the results of which form 
the  basis  of  making  judgements  about  carrying  values  of  assets  and  liabilities  and  which  are  not  readily 
apparent from other sources.

Estimates and underlying assumptions are revised on an on-going basis. Revisions to accounting estimates 
are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the 
period of the revision and future periods, if the revision affects both current and future periods.

(a)  Key Sources of Estimation Uncertainty

The  key  assumptions  concerning  the  future  and  other  key  sources  of  estimation  uncertainty  at  the 
balance  sheet  date,  that  have  a  significant  risk  of  causing  a  material  adjustment  to  the  carrying 
amounts of assets and liabilities within the next financial year are discussed below:

(i) 

Revenue Recognition and Estimation of Total Development Costs

For Singapore property development projects under progressive payment scheme, the Group 
recognises revenue and cost of sales from partly completed development properties held for 
sale based on the percentage of completion method. The stage of completion is measured in 
accordance with the accounting policy stated in Note 2.9. Estimates are required in determining 
the total estimated development costs which will affect the stage of completion. In making these 
assumptions, the Group relies on references to information such as current offers and/or recent 
contracts with contractors and suppliers, estimation of construction and material costs based 
on historical experience, and the work of professional surveyors and architects. Revenue from 
partly completed development properties held for sale is as disclosed in Note 3.

117

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
 
 
2.  

SUMMAR Y O F S IGNIF ICAN T AC C OUNTI NG POL ICI ES ( CO NT’D)

2.2  Significant Accounting Judgements and Estimates (cont’d)

(a)  Key Sources of Estimation Uncertainty (cont’d)

(ii) 

Valuation of Completed Investment Properties

The Group’s completed investment properties are stated at their estimated market values, which 
are  determined  annually.  The  fair  values  are  based  on  independent  professional  valuations 
conducted annually except for certain overseas properties whereby valuations are performed 
internally  every  year  and  at  least  once  every  two  years,  independent  professional  valuations 
are obtained for cross-checking purposes. The fair value of completed investment properties 
is  determined  using  a  combination  of  the  Direct  Comparison  Method,  Income  Approach  and 
Discounted Cash Flow Analysis. These estimated market values may differ from the prices at 
which the Group’s completed investment properties could be sold at a particular time, since actual 
selling prices are negotiated between willing buyers and sellers. Also, certain estimates require 
an assessment of factors not within the directors’ control, such as overall market conditions. As 
a result, actual results of operations and realisation of these completed investment properties 
could differ from the estimates set forth in these financial statements, and the difference could 
be significant. The carrying amount of completed investment properties is as disclosed in the 
Group’s balance sheet.

The Group’s valuation policies and procedures are disclosed in Note 37(d).

(iii) 

Revaluation of Investment Property under Construction (“IPUC”)

IPUC is measured at fair value if it can be reliably determined. If fair value cannot be reliably 
determined,  then  IPUC  is  recorded  at  cost.  The  fair  value  of  IPUC  is  determined  using  a 
combination  of  market  comparison  and  discounted  cash  flow  analysis  and  investment 
comparable sales and residual land value methods which considers the significant risks which 
are relevant to the development process, including but not limited to construction and letting 
risks.

The Group’s valuation policies and procedures are disclosed in Note 37(d).

(iv)  Net Realisable Value of Properties Held for Sale

Properties held for sale are carried at lower of cost and net realisable value.

A write down to net realisable value is made for properties held for sale when the net realisable 
value  has  fallen  below  cost.  In  arriving  at  estimates  of  net  realisable  values,  management 
considers factors such as current market conditions, recent selling prices of the development 
properties and comparable development properties less the estimated costs of completion and 
the estimated costs necessary to make the sale. 

The carrying amounts of properties held for sale is as disclosed in the Group’s balance sheet.

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2.2  Significant Accounting Judgements and Estimates (cont’d)

(a)  Key Sources of Estimation Uncertainty (cont’d)

(v) 

Impairment of Intangible Assets – Management Contracts, Goodwill and Brand

Impairment exists when the carrying value of an asset or cash generating unit (“CGU”) exceeds 
its recoverable amount, which is the higher of its fair value less costs of disposal and its value 
in use. The fair value less costs of disposal calculation is based on available data from binding 
sales transactions, conducted at arm’s length, for similar assets or observable market prices 
less  incremental  costs  for  disposing  of  the  asset.  The  value  in  use  calculation  is  based  on  a 
discounted cash flow (“DCF”) model. The cash flows are derived from the budget for the next 
five  years  and  do  not  include  restructuring  activities  that  the  Group  is  not  yet  committed  to 
or significant future investments that will enhance the asset’s performance of the CGU being 
tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well 
as the expected future cash-inflows and the growth rate used for extrapolation purposes. These 
estimates are most relevant to goodwill and other intangibles, such as management contracts 
and brand with indefinite useful lives recognised by the Group. The key assumptions used to 
determine the recoverable amount for the different CGUs, including a sensitivity analysis, are 
disclosed and further explained in Note 20(a).

In particular, the valuations of the brand and goodwill arising from business combinations during 
the current year as disclosed in Note 16(b) and Note 20(a) have been provisionally determined as 
at 30 September 2014, and as there are no indicators of impairment as at the reporting date, no 
impairment testing is applicable for the current year.

(b)  Critical Judgements made in Applying Accounting Policies

In  the  process  of  applying  the  Group’s  accounting  policies,  management  has  made  the  following 
judgements,  apart  from  those  involving  estimations,  which  have  significant  effects  on  the  amounts 
recognised in the consolidated financial statements.

(i) 

Income Taxes

The  Group  has  exposure  to  income  taxes  in  numerous  jurisdictions.  Significant  assumptions 
are  required  in  determining  the  group-wide  provision  for  income  taxes.  The  ultimate  tax 
determination  of  taxability  of  income  and  deductibility  of  expenses  from  certain  transactions 
are uncertain during the ordinary course of business. The tax computations of newly created tax 
consolidated groups arising from business combinations would also be subject to uncertainty 
and final assessment by tax authorities. The Group recognises the liabilities for expected tax 
issues based on estimates of whether additional taxes will be due. Where the final tax outcome 
of these matters is different from the amounts that were initially recognised, such differences 
will impact the income tax and deferred tax provisions in the period in which such determination 
is made. The carrying amounts of provision for taxation, deferred tax assets and liabilities are as 
disclosed in the Group’s balance sheet.

The tax computation of newly created tax consolidated groups arising from business combinations 
would also be subject to uncertainty and formal assessment by tax authorities.

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2.2  Significant Accounting Judgements and Estimates (cont’d)

(b)  Critical Judgements made in Applying Accounting Policies (cont’d)

(ii) 

Land Appreciation Tax

Under  the  Provisional  Regulations  on  land  appreciation  tax  (“LAT”)  implemented  upon  the 
issuance  of  the  Provisional  Regulations  of  the  People’s  Republic  of  China  (the  “PRC”)  on  27 
January 1995, all gains arising from the transfer of real estate property in China effective from 1 
January 1994 are subject to LAT at progressive rates ranging from 30% to 60% on the appreciation 
of land value, being the proceeds of sales of properties less deductible expenditure including 
amortisation of land use rights, borrowing costs and all property development expenditure.

The subsidiaries of the Group engaging in property development business in China are subject 
to land appreciation tax. However, the implementation of this tax varies amongst China cities 
and the Group has not finalised its land appreciation tax returns with various tax authorities. 
Accordingly, significant judgement is required in determining the amount of land appreciation 
and  related  taxes.  The  ultimate  tax  determination  is  uncertain  during  the  ordinary  course  of 
business. The Group recognises these liabilities based on management’s best estimates. When 
the final tax outcome of these matters is different from the amounts that were initially recorded, 
such differences will impact the provisions for land appreciation tax in the period in which such 
determination is made.

(iii) 

Operating Lease Commitments – Group as Lessor

The Group has entered into commercial property leases on its investment property portfolio. The 
Group has determined, based on an evaluation of the terms and conditions of the arrangements, 
that it retains all the significant risks and rewards of ownership of these properties which are 
leased out on operating leases, except for freehold properties with 75 years lease carved out or 
99 years lease carved out which have been treated as finance leases.

(iv) 

Classification of Property

In  determining  whether  a  property  used  as  service  apartments  is  classified  as  investment 
property  or  fixed  assets,  the  Group  analyses  whether  the  quantum  of  other  income  derived 
from  ancillary  services  rendered  in  the  serviced  apartments  is  significant  as  compared  to 
room revenue and total revenue. Based on the analysis for the years presented, the Group has 
determined that revenue from ancillary services is not significant.

(v) 

Business Combinations

The  Group  acquires  subsidiaries  that  own  real  estate.  At  the  time  of  acquisition,  the  Group 
considers whether each acquisition represents the acquisition of a business or the acquisition of 
an asset. The Group accounts for an acquisition as a business combination where an integrated 
set of activities is acquired in addition to the property. More specifically, consideration is made 
of the extent to which significant processes are acquired and, in particular, the extent of services 
provided by the subsidiary (e.g. maintenance, cleaning, security, bookkeeping, hotel services, 
etc). For example, the Group assessed the acquisition of the subsidiaries as disclosed in Note 
16(b) as purchases of businesses because of the strategic management function and associate 
processes purchased along with the investment and development properties.

When the acquisition of subsidiaries does not represent a business, it is accounted for as an 
acquisition  of  a  group  of  assets  and  liabilities.  The  cost  of  the  acquisition  is  allocated  to  the 
assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred 
tax is recognised.

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2.3  Functional Currency

Items included in the financial statements of each entity in the Group are measured using the currency that 
best reflects the economic substance of the underlying events and circumstances relevant to the entity (the 
“functional currency”). The consolidated financial statements and financial statements of the Company are 
presented in Singapore dollars, the functional currency of the Company.

2.4  Basis of Consolidation and Business Combinations

(a)  Basis of Consolidation

The  financial  year  of  the  Company  and  all  its  subsidiaries  ends  on  30  September  unless  otherwise 
stated. The consolidated financial statements incorporate the financial statements of the Company and 
all its subsidiaries made up to 30 September. The financial statements of subsidiaries are prepared 
using  consistent  accounting  policies.  Adjustments  are  made  to  any  dissimilar  material  accounting 
policies to conform to the Group’s significant accounting policies. A list of the Company’s significant 
subsidiaries is shown in Note 43.

The  consolidated  financial  statements  comprise  the  financial  statements  of  the  Company  and  its 
subsidiaries as at the balance sheet date.

All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-
group transactions and dividends are eliminated in full.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains 
control, and continue to be consolidated until the date that such control ceases.

Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit 
balance.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an 
equity transaction. If the Group losses control over a subsidiary, it:

– 

– 

– 

– 

– 

– 

– 

De-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying 
amounts at the date when control is lost;

De-recognises the carrying amount of any non-controlling interest;

De-recognises the cumulative translation differences recorded in equity;

Recognises the fair value of the consideration received;

Recognises the fair value of any investment retained;

Recognises any surplus or deficit in profit statement;

Re-classifies the Group’s share of components previously recognised in other comprehensive 
income to profit or loss or retained earnings, as appropriate.

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2.4  Basis of Consolidation and Business Combinations (cont’d)

(b)  Business Combinations

Business  combinations  are  accounted  for  by  applying  the  acquisition  method.  Identifiable  assets 
acquired, liabilities and contingent liabilities assumed in a business combination are measured initially 
at their fair values at the acquisition date. Acquisition-related costs are recognised as expenses in the 
periods in which the costs are incurred and the services are received.

When  the  Group  acquires  a  business,  it  assesses  the  financial  assets  and  liabilities  assumed  for 
appropriate  classification  and  designation  in  accordance  with  the  contractual  terms,  economic 
circumstances and pertinent conditions as at the acquisition date.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the 
acquisition date. Subsequent changes to the fair value of the contingent consideration, which is deemed 
to be an asset or liability, will be recognised in accordance with FRS 39 either in the profit statement or 
as changes to other comprehensive income. If the contingent consideration is classified as equity, it is 
not remeasured until it is finally settled within equity.

In  business  combinations  achieved  in  stages,  previously  held  equity  interests  in  the  acquiree  are 
remeasured to fair value at the acquisition date and any corresponding gain or loss is recognised in the 
profit statement.

The  Group  elects  for  each  individual  business  combination,  whether  non-controlling  interest  in  the 
acquiree  (if  any),  that  are  present  ownership  interests  and  entitle  their  holders  to  a  proportionate 
share of net assets in the event of liquidation, is recognised on the acquisition date at fair value, or 
at  the  non-controlling  interest’s  proportionate  share  of  the  acquiree’s  identifiable  net  assets.  Other 
components of non-controlling interests are measured on their acquisition date at fair value, unless 
another measurement basis is required by another FRS.

Any excess of the sum of the fair value of the consideration transferred in the business combination, the 
amount of non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously 
held equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets 
and liabilities is recorded as goodwill. The accounting policy for goodwill is set out below. In instances 
where the latter amount exceeds the former, the excess is recognised as gain on bargain purchase in 
the profit statement on the acquisition date.

Non-controlling  interests  represent  the  equity  in  subsidiaries  not  attributable,  directly  or  indirectly, 
to  owners  of  the  Company  and  are  presented  separately  in  the  consolidated  profit  statement  and 
consolidated statement of comprehensive income, and within equity in the consolidated balance sheet, 
separately from the equity attributable to owners of the Company. Changes in the Company’s ownership 
interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In 
such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted 
to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by 
which the non-controlling interest is adjusted and the fair value of the consideration paid or received is 
recognised directly in equity and attributable to owners of the Company. 

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2.4  Basis of Consolidation and Business Combinations (cont’d)

(c)  Property Acquisitions and Business Combinations

Where  property  is  acquired,  via  corporate  acquisitions  or  otherwise,  management  considers  the 
substance  of  the  assets  and  activities  of  the  acquired  entity  in  determining  whether  the  acquisition 
represents the acquisition of a business. The basis of the judgement is set out in Note 2.2(b)(v).

Where  such  acquisitions  are  not  judged  to  be  an  acquisition  of  a  business,  they  are  not  treated  as 
business  combinations.  Rather,  the  cost  to  acquire  the  corporate  entity  is  allocated  between  the 
identifiable assets and liabilities of the entity based on their relative fair values at the acquisition date. 
Accordingly, no goodwill or additional deferred taxation arises. Otherwise, acquisitions are accounted 
for as business combinations.

2.5 

Investment in Subsidiaries

Subsidiaries are entities over which the Group has the power to govern the financial and operating policies 
so as to obtain benefits from its activities. The Group generally has such power when it directly or indirectly, 
holds more than 50% of the issued share capital, or controls more than half of the voting power, or controls 
the composition of the board of directors.

In  the  Company’s  balance  sheet,  investment  in  subsidiaries  is  accounted  for  at  cost  less  any  impairment 
losses.

2.6  Joint Ventures

A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that 
is subject to joint control, where the strategic financial and operating decisions relating to the activity require 
the unanimous consent of the parties sharing control.

The Group recognises its interest in the joint venture using the proportionate consolidation method. The Group 
combines its proportionate share of each of the assets, liabilities, income and expenses of the joint venture 
with the similar items, line by line, in its consolidated financial statements. The joint venture is proportionately 
consolidated from the date the Group obtains joint control until the date the Group ceases to have joint control 
over the joint venture.

Adjustments  are  made  in  the  Group’s  consolidated  financial  statements  to  eliminate  the  Group’s  share  of 
intragroup balances, income and expenses and unrealised gains and losses on such transactions between the 
Group and its jointly controlled entity. Losses on transactions are recognised immediately if the loss provides 
evidence of a reduction in the net realisable value of current assets or an impairment loss.

The financial statements of the joint venture are prepared as of the same reporting date as the Company. 
Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

Upon loss of joint control, the Group measures and recognises any retained investment at its fair value. Any 
difference between the carrying amount of the former jointly controlled entity upon loss of joint control and 
the aggregate of the fair value of the retained investment and proceeds from disposal is recognised in profit 
statement.

In the Company’s separate financial statements, interests in joint ventures are carried at cost less impairment 
losses.

A list of the joint ventures is shown in Note 43.

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2.7  Associates

Associates are entities (not being subsidiaries or joint ventures) in which the Group has significant influence.

Associates are equity accounted for from the date the Group obtains significant influence until the date the 
Group ceases to have significant influence over the associates.

The Group’s investments in associates are accounted for in the consolidated financial statements using the 
equity  method.  Under  the  equity  method,  the  investment  in  associates  is  carried  in  the  balance  sheet  at 
cost plus post-acquisition changes in the Group’s share of net assets of the associates. Goodwill relating to 
associates is included in the carrying amount of the investment and is neither amortised nor tested individually 
for impairment. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets, 
liabilities and contingent liabilities over the cost of the investment is included as income in the determination 
of the Group’s share of results of the associate in the period in which the investment is acquired.

The profit statement reflects the share of the results of operations of the associates. Where there has been a 
change recognised in other comprehensive income by the associates, the Group recognises its share of such 
changes in other comprehensive income. Unrealised gains and losses resulting from transactions between 
the Group and the associates are eliminated to the extent of the interest in the associates.

The  Group’s  share  of  the  profit  or  loss  of  its  associates  is  the  profit  attributable  to  equity  holders  of  the 
associate  and,  therefore  is  the  profit  or  loss  after  tax  and  non-controlling  interests  in  the  subsidiaries  of 
associates.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group 
does  not  recognise  further  losses,  unless  it  has  incurred  obligations  or  made  payments  on  behalf  of  the 
associate.

After  application  of  the  equity  method,  the  Group  determines  whether  it  is  necessary  to  recognise  an 
additional impairment loss on the Group’s investment in its associates. The Group determines at the end of 
each reporting period whether there is any objective evidence that the investment in the associate is impaired. 
If this is the case, the Group calculates the amount of impairment as the difference between the recoverable 
amount of the associate and its carrying value and recognises the amount in profit statement.

The most recently available audited financial statements of the associates are used by the Group in applying 
the equity method. Where the dates of the audited financial statements used are not co-terminous with those 
of the Group, the share of results is arrived from the last audited financial statements available and unaudited 
management  financial  statements  to  the  end  of  the  accounting  period.  Consistent  accounting  policies  are 
applied for like transactions and events in similar circumstances.

Upon  loss  of  significant  influence  over  the  associate,  the  Group  measures  and  recognises  any  retained 
investment  at  its  fair  value.  Any  difference  between  the  carrying  amount  of  the  associate  upon  loss  of 
significant influence and the fair value of the aggregate of the retained investment and proceeds from disposal 
is recognised in profit statement.

In the Company’s separate financial statements, interests in associates are carried at cost less impairment 
losses.

A list of the associates is shown in Note 43.

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2.8 

Investment Properties

(a)  Completed Investment Properties

Completed investment properties are held either to earn rental income or for capital appreciation or 
both and are treated as non-current assets.

Completed investment properties are initially recorded at cost, including transaction costs. Subsequent 
to recognition, completed investment properties are measured at fair value and gains or losses arising 
from changes in the fair value of completed investment properties are included in the profit statement 
in the year in which they arise. 

Completed investment properties are derecognised when either they have been disposed of or when 
the  completed  investment  property  is  permanently  withdrawn  from  use  and  no  future  economic 
benefit is expected from its disposal. Any gains or losses on the retirement or disposal of a completed 
investment property are recognised in the profit statement in the year of retirement or disposal.

Transfers are made to or from completed investment properties only when there is a change in use. 
For  a  transfer  from  completed  investment  property  to  owner-occupied  property,  the  deemed  cost 
for subsequent accounting is the fair value at the date of change in use. For a transfer from owner-
occupied property to completed investment property, the property is accounted for in accordance with 
the accounting policy for fixed assets up to the date of change in use.

Rental  and  related  income  from  completed  investment  properties  are  recognised  on  a  straight  line 
basis over the lease term commencing on the date from which the lessee is entitled to exercise its right 
to use the leased asset.

(b) 

Investment Properties under Construction (“IPUC”)

IPUC  are  initially  stated  at  cost  which  includes  cost  of  land  and  construction,  related  overhead 
expenditure and financing charges incurred during the period of construction and up to the completion 
of construction.

IPUC are subsequently measured at fair value annually and on completion, with changes in fair values 
being recognised in the profit statement when fair value can be measured reliably. 

IPUC are considered completed and are transferred to investment properties when they are ready for 
their intended use and a Temporary Occupation Permit from the authorities have been obtained.

When assessing whether the fair value of IPUC can be determined reliably, the Group considers, among 
other things:

1. 

2. 

3. 

4. 

whether the asset is being constructed in a developed liquid market;

whether a construction contract with the contractor has been signed;

whether the required building and letting permits are obtained; and 

what percentage of rentable area has been pre-leased to tenants.

IPUC for which fair value cannot be determined reliably is measured at cost less impairment.

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2.8 

Investment Properties (cont’d)

(b) 

Investment Properties under Construction (“IPUC”) (cont’d)

The  fair  values  of  Singapore’s  IPUC  are  determined  annually  based  on  the  opinion  of  a  qualified 
independent valuer and valuations are performed using methods as deemed appropriate by the valuer. 
The fair values of overseas’ IPUC are determined at least once every two years based on the opinion 
of  a  qualified  independent  valuer  or  internal  valuer  and  valuations  are  performed  using  methods 
as deemed appropriate by the valuer. Each IPUC is individually assessed. Valuations are adopted by 
directors.

The estimated value of future assets is based on the expected future income from the project, using risk 
adjusted yields that are higher than the current yields of similar completed property. The remaining 
expected costs of completion plus margin are deducted from the estimated future assets value.

2.9  Properties Held for Sale

(a)  Development Properties Held for Sale 

Development  properties  held  for  sale  are  properties  acquired  or  being  constructed  for  sale  in  the 
ordinary  course  of  business,  rather  than  to  be  held  for  the  Company’s  own  use,  rental  or  capital 
appreciation.

Development properties held for sale are held as inventories and are measured at the lower of cost 
and net realisable value.

The costs of development properties held for sale include:

– 

– 

– 

Freehold and leasehold rights for land;

Amounts paid to contractors for construction; and

Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal 
services, property transfer taxes, construction overheads and other related costs.

Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are 
expensed when incurred.

Net realisable value of development properties held for sale is the estimated selling price in the ordinary 
course of the business, based on market prices at the end of the reporting period and discounted for 
the time value of money if material, less the estimated costs of completion and the estimated costs 
necessary to make the sale.

Development properties held for sale are stated at cost plus attributable profits less progress billings 
if their revenue is recognised based on percentage of completion method (see accounting policy for 
revenue recognition below). Progress billings not yet paid by customers are included within “trade and 
other receivables”.

Development properties held for sale are stated at cost if their revenue is recognised upon completion. 
Payments received from purchasers prior to completion are included in “trade and other payables” as 
“progress billings received in advance”.

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2.9  Properties Held for Sale (cont’d)

(a)  Development Properties Held for Sale (cont’d)

The costs of development properties recognised in profit statement on disposal are determined with 
reference to the specific costs incurred on the property sold and an allocation of any non-specific costs 
based on the relative size of the property sold.

Development properties held for sale are considered complete upon the issue of Temporary Occupation 
Permit. When completed, development properties held for sale are transferred to completed properties 
held for sale.

(b)  Completed Properties Held for Sale

Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes 
cost of land and construction, related overhead expenditure, and financing charges and other net costs 
incurred during the period of development.

A write down to net realisable value is made when it is anticipated that the net realisable value has 
fallen below cost.

2.10  Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment. The cost 
of an asset comprises its purchase price and any directly attributable costs of bringing the asset to working 
condition  for  its  intended  use.  Expenditure  for  additions,  improvements  and  renewals  are  capitalised  and 
expenditure for maintenance and repair are charged to the profit statement. When assets are sold or retired, 
their  cost  and  accumulated  depreciation  are  removed  from  the  financial  statements  and  any  gain  or  loss 
resulting from their disposal is included in the profit statement.

Property, plant and equipment are depreciated on the straight line method so as to write off the cost of the 
assets over their estimated useful lives. The principal annual rates of depreciation are as follows:

Freehold land 
Buildings 
Equipment, furniture and fittings 
Motor vehicles 

Rate per annum
Not depreciated
2% to 5%
10% to 20%
14.3%

The useful lives and depreciation method are reviewed periodically to ensure that the method and period of 
depreciation are consistent with the expected pattern of economic benefits from items of property, plant and 
equipment.

2.11  Financial Assets

Financial  assets  within  the  scope  of  FRS  39  are  classified  as  either  financial  assets  at  fair  value  through 
profit  or  loss,  loans  and  receivables,  held-to-maturity  investments,  or  available-for-sale  financial  assets, 
as  appropriate.  Financial  assets  are  recognised  when,  and  only  when,  the  Group  becomes  a  party  to  the 
contractual provisions of the financial instrument.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial 
assets not at fair value through profit and loss, directly attributable transaction costs. The Group determines 
the  classification  of  its  financial  assets  after  initial  recognition  and,  where  allowed  and  appropriate,  re-
evaluates this designation at each financial year end.

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2.11  Financial Assets (cont’d)

Non-derivative financial assets with fixed or determinable payment that are not quoted in an active market are 
classified as loans and receivables. Such assets are initially recognised at fair value, plus directly attributable 
costs, and subsequently carried at amortised cost using the effective interest method. Gains and losses are 
recognised in the profit statement when the loans and receivables are derecognised or impaired, and through 
the amortisation process.

Available-for-sale financial assets are those that are not classified in any of the other categories. After initial 
recognition,  available-for-sale  financial  assets  are  measured  at  fair  value,  with  any  resultant  gain  or  loss 
recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses 
on monetary instruments and interest calculated using the effective interest method are recognised in profit 
statement. The cumulative gain or loss previously recognised in other comprehensive income is reclassified 
from equity to profit statement as a reclassification adjustment when the financial asset is derecognised.

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less 
impairment loss.

2.12  Receivables

Trade  and  other  receivables,  including  amounts  due  from  subsidiaries,  associates,  joint  ventures,  related 
companies and loans to related companies, are classified and accounted for as loans and receivables under 
FRS 39. The accounting policy is stated in Note 2.11.

An allowance is made for uncollectible amounts when there is objective evidence that the Group will not be 
able to collect the debt. Bad debts are written off when identified. Further details of accounting policy for 
impairment of financial assets are stated in Note 2.16.

2.13  Cash and Cash Equivalents

Cash on hand and in banks and fixed deposits which are held to maturity are classified and accounted for as 
loans and receivables under FRS 39. The accounting policy is stated in Note 2.11.

For the purpose of cash flow statement, cash and cash equivalents consist of cash on hand and deposits in 
banks, net of outstanding bank overdrafts.

2.14  Financial Liabilities 

Financial liabilities within the scope of FRS 39 are recognised when, and only when, the Group becomes a 
party to the contractual provisions of the financial instrument.

Financial liabilities are recognised initially at fair value plus directly attributable transaction costs.

Subsequent  to  initial  recognition,  financial  liabilities  are  measured  at  amortised  cost  using  the  effective 
interest method.

Gains and losses are recognised in the profit statement when the liabilities are derecognised, and through the 
amortisation process. 

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2.15  Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event 
and it is probable that an outflow of resources embodying economic benefits will be required to settle the 
obligation, and a reliable estimate can be made of the amount of the obligation.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no 
longer probable that an outflow of economic resources will be required to settle the obligation, the provision 
is reversed. Where the effect of time value of money is material, provisions are discounted using a current 
pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the 
increase in the provision due to the passage of time is recognised as a finance cost.

2.16  Impairment

(a) 

Impairment of Non-Financial Assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. 
If any such indication exists, the Group makes an estimate of the asset’s recoverable amount. 

An  asset’s  recoverable  amount  is  the  higher  of  an  asset’s  or  cash-generating  unit’s  fair  value  less 
costs of disposal and its value in use and is determined for an individual asset, unless the asset does 
not generate cash inflow that are largely independent of those from other assets or groups of assets. 

Impairment losses of continuing operations are recognised in profit statement, except for assets that 
are previously revalued where the revaluation was taken to other comprehensive income. In this case, 
the impairment is also recognised in other comprehensive income up to the amount of any previous 
revaluation.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any 
indication that previously recognised impairment losses may no longer exist or may have decreased. If 
such indication exists, the recoverable amount is estimated. A previously recognised impairment loss 
is reversed only if there has been a change in the estimates used to determine the asset’s recoverable 
amount since the last impairment loss was recognised. If that is the case, the carrying amount of the 
asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount 
that would have been determined, net of depreciation, had no impairment loss been recognised for the 
asset in prior years. Reversal of an impairment loss is recognised in the profit statement unless the 
asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase. 
After  such  a  reversal,  the  depreciation  charge  is  adjusted  in  future  periods  to  allocate  the  asset’s 
revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. 

The Group does not reverse in a subsequent period, any impairment loss recognised for goodwill.

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2.16  Impairment (cont’d)

(b) 

Impairment of Financial Assets  

The Group assesses at each balance sheet date whether there is any objective evidence that a financial 
asset or group of financial assets is impaired.

(i) 

Assets Carried at Amortised Cost

For  financial  assets  carried  at  amortised  cost,  the  Group  first  assesses  whether  objective 
evidence of impairment exists individually for financial assets that are individually significant, 
or collectively for financial assets that are not individually significant. If the Group determines 
that  no  objective  evidence  of  impairment  exists  for  an  individually  assessed  financial  asset, 
whether significant or not, it includes the asset in a group of financial assets with similar credit 
risk characteristics and collectively assesses them for impairment. Assets that are individually 
assessed for impairment and for which an impairment loss is, or continues to be recognised are 
not included in a collective assessment of impairment.

If  there  is  objective  evidence  that  an  impairment  loss  on  loans  and  receivables  or  held-to-
maturity investments carried at amortised cost has been incurred, the amount of the loss is 
measured  as  the  difference  between  the  asset’s  carrying  amount  and  the  present  value  of 
estimated future cash flow discounted at the financial asset’s original effective interest rate. If 
a loan has a variable interest rate, the discount rate for measuring any impairment loss is the 
current effective interest rate. The carrying amount of the asset is reduced through the use of 
an allowance. The amount of the loss is recognised in the profit statement.

When  the  asset  becomes  uncollectible,  the  carrying  amount  of  impaired  financial  asset  is 
reduced directly or if an amount was charged to the allowance account, the amounts charged to 
the allowance account are written off against the carrying value of the financial asset.

To determine whether there is objective evidence that an impairment loss on financial assets has 
been incurred, the Group considers factors such as the probability of insolvency or significant 
financial difficulties of the debtor and default or significant delay in payments.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can 
be related objectively to an event occurring after the impairment was recognised, the previously 
recognised  impairment  loss  is  reversed.  Any  subsequent  reversal  of  an  impairment  loss  is 
recognised in the profit statement, to the extent that the carrying value of the asset does not 
exceed its amortised cost at the reversal date.

(ii) 

Assets Carried at Cost

If there is objective evidence that an impairment loss on an unquoted equity instrument that is 
not carried at fair value because its fair value cannot be reliably measured, or on a derivative 
asset that is linked to and must be settled by delivery of such an unquoted equity instrument 
has been incurred, the amount of the loss is measured as the difference between the asset’s 
carrying amount and the present value of estimated future cash flow discounted at the current 
market rate of return for a similar financial asset. Such impairment losses are not reversed in 
subsequent periods.

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2.16  Impairment (cont’d)

(b) 

Impairment of Financial Assets (cont’d)  

(iii) 

Available-for-sale Financial Assets 

In  the  case  of  equity  investments  classified  as  available-for-sale,  objective  evidence  of 
impairment  include  (i)  significant  financial  difficulty  of  the  issuer  or  obligor,  (ii)  information 
about  significant  changes  with  an  adverse  effect  that  have  taken  place  in  the  technological, 
market, economic or legal environment in which the issuer operates, and indicates that the cost 
of the investment in equity instrument may not be recovered; and (iii) a significant or prolonged 
decline in the fair value of the investment below its costs. ‘Significant’ is to be evaluated against 
the original cost of the investment and ‘prolonged’ against the period in which the fair value has 
been below its original cost.

If  an  available-for-sale  financial  asset  is  impaired,  an  amount  comprising  the  difference 
between its cost (net of any principal payment and amortisation) and its current fair value, less 
any impairment loss previously recognised in the profit statement, is transferred from equity to 
the profit statement. Reversals in respect of equity instruments classified as available-for-sale 
are not recognised in the profit statement. Reversals of impairment losses on debt instruments 
are reversed through the profit statement, if the increase in fair value of the instrument can be 
objectively related to an event occurring after the impairment loss was recognised in the profit 
statement.

2.17  Income Taxes

(a)  Current Tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected 
to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the 
amount are those that are enacted or substantively enacted by the balance sheet date.

Current taxes are recognised in the profit statement except to the extent that the tax relates to items 
recognised outside the profit statement, either in other comprehensive income or directly in equity. 
Management periodically evaluates positions taken in the tax returns with respect to situations in which 
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b)  Deferred Tax

Deferred  tax  is  provided  using  the  liability  method  on  temporary  differences  at  the  balance  sheet 
date between the tax bases of assets and liabilities and their carrying amounts for financial reporting 
purposes.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

– 

– 

Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or 
liability in a transaction that is not a business combination and, at the time of the transaction, 
affects neither the accounting profit nor taxable profit or loss; and

In  respect  of  taxable  temporary  differences  associated  with  investments  in  subsidiaries, 
associates  and  interests  in  joint  ventures,  where  the  timing  of  the  reversal  of  the  temporary 
differences can be controlled and it is probable that the temporary differences will not reverse 
in the foreseeable future.

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2.17  Income Taxes (cont’d)

(b)  Deferred Tax (cont’d)

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused 
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available 
against which the deductible temporary differences, and the carry-forward of unused tax credits and 
unused tax losses can be utilised except:

– 

– 

Where the deferred tax asset relating to the deductible temporary difference arises from the 
initial recognition of an asset or liability in a transaction that is not a business combination and, 
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

In  respect  of  deductible  temporary  differences  associated  with  investments  in  subsidiaries, 
associates and interests in joint ventures, deferred tax assets are recognised only to the extent 
that  it  is  probable  that  the  temporary  differences  will  reverse  in  the  foreseeable  future  and 
taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the 
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of 
the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each balance 
sheet date and are recognised to the extent that it has become probable that future taxable profit will 
allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year 
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been 
enacted or substantively enacted at the balance sheet date.

Deferred tax relating to items recognised outside the profit statement is recognised outside the profit 
statement.  Deferred  tax  items  are  recognised  in  correlation  to  the  underlying  transaction  either  in 
other comprehensive income or directly in equity and deferred tax arising from a business combination 
is adjusted against goodwill on acquisition.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off 
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity 
and the same taxation authority.

(c)  Sales Tax

Revenue, expenses and assets are recognised net of the amount of sales tax except:

– 

Where the sales tax incurred on a purchase of assets or services is not recoverable from the 
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of 
the asset or as part of the expense item as applicable; and

– 

Receivables and payables that are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part 
of receivables or payables in the balance sheet.

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2.18  Borrowing Costs

Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the 
acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when the 
activities to prepare the asset for its intended use or sale are in progress and the expenditure and borrowing 
costs  are  incurred.  Borrowing  costs  are  capitalised  until  the  assets  are  substantially  completed  for  their 
intended use or sale. All other borrowing costs are expensed in the period they occur. Borrowing costs consist 
of interest and other costs that an entity incurs in connection with the borrowing of funds. 

2.19  Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and 
the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the 
fair value of consideration received or receivable, taking into account contractually defined terms of payment 
and excluding taxes or duty. The following specific recognition criteria must also be met before revenue is 
recognised:

(a)  Properties Held for Sale

Sale of Completed Property

Revenue  from  completed  properties  is  recognised  when  the  risks  and  rewards  of  ownership  have 
been transferred to the purchaser either through the transfer of legal title or equitable interest in the 
properties, which is normally on unconditional exchange of contracts. For conditional exchanges, sales 
are recognised only when all the significant conditions are satisfied.

Sale of Property under Development

The Group recognises revenue on property under development when the significant risks and rewards 
of  ownership  have  been  transferred  to  the  purchasers.  For  residential  development  projects  under 
progressive  payment  scheme  in  Singapore,  whereby  the  legal  terms  in  the  sales  contracts  result 
in  continuous  transfer  of  work-in-progress  to  the  purchasers,  revenue  is  recognised  based  on  the 
percentage of completion method. Under the percentage of completion method, profit is brought into 
profit statement only in respect of finalised sales contracts and to the extent that such profit relates to 
the progress of construction work. The progress of construction work is measured by the proportion 
of the construction and related costs incurred to date to the estimated total construction and related 
costs for each project. 

For  executive  condominium  projects  in  Singapore,  residential  development  projects  under  deferred 
payment scheme in Singapore and overseas development projects, revenue will be recognised upon 
the transfer of significant risks and rewards of ownership, which generally coincides with the time the 
development units are delivered to the purchasers.

(b)  Rental Income

Refer to the policy on Investment Properties.

(c)  Hotel Income

Revenue  from  hotel  operations  is  recognised  on  an  accrual  basis,  upon  rendering  of  the  relevant 
services.

(d)  Dividends

Dividend income is recognised when the Group’s right to receive the payment is established.

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2.19  Revenue Recognition (cont’d)

(e) 

Interest Income

Interest income is recognised using the effective interest method.

(f)  Management Fees

Revenue is recognised on an accrual basis.

2.20  Intangible Assets

Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in 
a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible 
assets  are  carried  at  cost  less  any  accumulated  amortisation  and  any  accumulated  impairment  losses. 
Internally  generated  intangible  assets,  excluding  capitalised  development  costs,  are  not  capitalised  and 
expenditure is reflected in profit statement in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible  assets  with  finite  useful  lives  are  amortised  over  the  estimated  useful  lives  and  assessed  for 
impairment  whenever  there  is  an  indication  that  the  intangible  assets  may  be  impaired.  The  amortisation 
period and the amortisation method are reviewed at least at each financial year-end. Changes in the expected 
useful  life  or  the  expected  pattern  of  consumption  of  future  economic  benefits  embodied  in  the  asset  is 
accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in 
accounting estimates. The amortisation expense on intangible assets with finite useful lives is recognised in 
profit statement in the expense category consistent with the function of the intangible asset.

Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, 
or more frequently if the events and circumstances indicate that the carrying value may be impaired either 
individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of 
an  intangible  asset  with  an  indefinite  useful  life  is  reviewed  annually  to  determine  whether  the  useful  life 
assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made on 
a prospective basis.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between 
the net disposal proceeds and the carrying amount of the asset and are recognised in profit statement when 
the asset is derecognised.

(a)  Management Contracts

Management contracts with finite useful lives are amortised on a straight line basis over an estimated 
useful life of 8 years. Management contracts with indefinite useful lives are not amortised.

(b)  Goodwill

Goodwill acquired in a business combination is initially measured at cost. Following initial recognition, 
goodwill is measured at cost less accumulated impairment losses.

Goodwill  is  reviewed  for  impairment,  at  least  annually  or  more  frequently  if  events  or  changes  in 
circumstances indicate that the carrying value may be impaired.

(c)  Brands

Brands with finite useful lives are amortised on a straight line basis over an estimated useful life of 10 
years.

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2.21  Foreign Currencies

(a)  Foreign Currency Transactions

Transactions  in  foreign  currencies  are  measured  in  the  respective  functional  currencies  of  the 
Company and its subsidiaries at rates of exchange approximating those ruling at transaction dates. 
Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at 
the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical 
cost in a foreign currency are translated using the exchange rates ruling at the initial transaction dates. 
Non-monetary items measured at fair value in a foreign currency are translated using the exchange 
rates at the date when the fair value was measured. Exchange differences are dealt with in the profit 
statement.

Exchange differences arising on the settlement of monetary items or on translating monetary items 
at  the  balance  sheet  date  are  recognised  in  the  profit  statement  except  for  exchange  differences 
arising  on  monetary  items  that  form  part  of  the  Company’s  net  investment  in  foreign  subsidiaries, 
which are recognised initially in other comprehensive income and accumulated under foreign currency 
translation reserve in equity  and recognised in the consolidated profit statement on disposal of the 
subsidiary. In the Company’s separate financial statements, such exchange differences are recognised 
in the profit statement.

(b)  Foreign Currency Translation

The results and financial position of foreign operations are translated into Singapore dollars using the 
following procedures:

– 

– 

Assets and liabilities for each balance sheet presented are translated at the closing rate ruling 
at that balance sheet date; and

Income and expenses for each profit statement are translated at average exchange rates for the 
year, which approximates the exchange rates at the dates of the transactions.

All resulting exchange differences are taken directly to other comprehensive income.

On disposal of a foreign operation, the cumulative amount of exchange differences recognised in other 
comprehensive  income  relating  to  that  foreign  operation  is  recognised  in  the  profit  statement  as  a 
component of the gain or loss on disposal.

2.22  Employee Benefits 

(a)  Defined Contribution Plan

As required by law, the Group makes contributions to state pension schemes in accordance with local 
regulatory requirements. The pension contributions are recognised as compensation expense in the 
same period as the employment that gives rise to the contribution.

(b)  Employee Leave Entitlement

Employee  entitlements  to  annual  leave  are  recognised  when  they  accrue  to  employees.  A  provision 
is made for the estimated liability for leave as a result of services rendered by employees up to the 
balance sheet date.

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2.22  Employee Benefits (cont’d) 

(c)  Share Plans 

For  equity-settled  share-based  payment  transactions,  the  fair  value  of  the  services  received  is 
recognised as an expense with a corresponding increase in equity over the vesting period during which 
the employees become unconditionally entitled to the equity instrument. The fair value of the services 
received is determined by reference to the fair value of the equity instrument granted at the grant date. 
At each reporting date, the number of equity instruments that are expected to be vested are estimated. 
The impact on the revision of original estimates is recognised as an expense and as a corresponding 
adjustment to equity over the remaining vesting period, unless the revision to original estimates is due 
to market conditions. No adjustment is made if the revision or actual outcome differs from the original 
estimate due to market conditions.

For cash-settled share-based payment transactions, the fair value of the goods or services received 
is recognised as an expense with a corresponding increase in liability. The fair value of the services 
received  is  determined  by  reference  to  the  fair  value  of  the  liability.  Until  the  liability  is  settled,  the 
fair value of the liability is re-measured at each reporting date and at the date of settlement, with any 
changes in fair value recognised for the period.

The  proceeds  received  from  the  exercise  of  the  equity  instruments,  net  of  any  directly  attributable 
transaction costs, are credited to share capital when the equity instruments are exercised.

2.23  Derivative Financial Instruments 

The Group uses derivative financial instruments to hedge against risks associated with foreign currency and 
interest rate fluctuations. Foreign exchange forward contracts are used to hedge its risks associated primarily 
with foreign currency fluctuations. Interest rate swap contracts are used to hedge its risks associated with 
interest rate fluctuations. It is the Group’s policy not to trade in derivative financial instruments.

Derivatives  are  initially  recognised  at  fair  value  on  the  date  a  derivative  contract  is  entered  into  and  are 
subsequently re-measured at their fair value. The changes in fair value of any derivative instruments that do 
not qualify for hedge accounting are recognised immediately in the profit statement.

The Group applies hedge accounting for certain hedging relationships, which qualifies for hedge accounting. 
For the purpose of hedge accounting, these hedges are classified as cash flow hedges. At the inception of 
a  hedge  relationship,  the  Group  formally  designates  and  documents  the  hedge  relationship  to  which  the 
Group  wishes  to  apply  hedge  accounting  and  the  risk  management  objective  and  strategy  for  undertaking 
the hedge. Such hedges are expected to be highly effective in achieving offsetting changes in cash flow and 
are assessed on an ongoing basis to determine that they actually have been highly effective throughout the 
financial reporting periods for which they were designated. Hedges which meet the strict criteria for hedge 
accounting are accounted for as follows:

The effective portion of the gain or loss on the hedging instrument is recognised directly as other comprehensive 
income in hedging reserve, while any ineffective portion is recognised immediately in the profit statement. 
Amounts recognised as other comprehensive income are transferred to the profit statement when the hedged 
transaction affects the profit statement, such as when the hedged financial income or financial expense is 
recognised  or  when  a  forecast  sale  occurs.  Where  the  hedged  item  is  the  cost  of  a  non-financial  asset  or 
non-financial liability, the amounts recognised as other comprehensive income are transferred to the initial 
carrying amount of the non-financial asset or liability. If the forecast transaction or firm commitment is no 
longer expected to occur, amounts previously recognised in equity are transferred to the profit statement. If 
the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its 
designation as a hedge is revoked, amounts previously recognised in other comprehensive income remain in 
other comprehensive income until the forecast transaction or firm commitment occurs.

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2.23  Derivative Financial Instruments (cont’d) 

The  fair  value  of  forward  foreign  currency  contracts  is  calculated  by  reference  to  current  forward  foreign 
exchange rates for contracts with similar maturity profiles. The fair value of interest rate swap contracts is 
determined by reference to market values for similar instruments.

2.24  Derecognition of Financial Instruments

(a)  Financial Assets

A financial asset is derecognised when the contractual rights to receive cash flow from the asset have 
expired.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the 
sum of the consideration received (including any new asset obtained less any new liability assumed) 
and any cumulative gain or loss that has been recognised in other comprehensive income is recognised 
in the profit statement.

(b)  Financial Liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled 
or has expired.

Where  an  existing  financial  liability  is  replaced  by  another  from  the  same  lender  on  substantially 
different terms, or the terms of an existing liability are substantially modified, such an exchange or 
modification is treated as a derecognition of the original liability and the recognition of a new liability, 
and the difference in the respective carrying amounts is recognised in the profit statement.

2.25  Financial Guarantee

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse 
the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with 
the terms of a debt instrument.

Financial  guarantees  are  recognised  initially  at  fair  value,  adjusted  for  transaction  costs  that  are  directly 
attributable  to  the  issuance  of  the  guarantee.  Subsequent  to  initial  recognition,  financial  guarantees  are 
recognised as income in the profit statement over the period of the guarantee. If it is probable that the liability 
will be higher than the amount initially recognised less amortisation, the liability is recorded at the higher 
amount with the difference charged to the profit statement.

2.26  Leases

The  determination  of  whether  an  arrangement  is,  or  contains  a  lease  is  based  on  the  substance  of  the 
arrangement at inception date: whether fulfilment of the arrangement is dependent on the use of a specific 
asset  or  assets  and  the  arrangement  conveys  a  right  to  use  the  asset,  even  if  that  right  is  not  explicitly 
specified in an arrangement.

137

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
 
 
2.  

SUMMAR Y O F S IGNIF ICAN T AC C OUNTI NG POL ICI ES ( CO NT’D)

2.26  Leases (cont’d)

(a)  As Lessee

Finance  leases  which  transfer  to  the  Group  substantially  all  the  risks  and  rewards  incidental  to 
ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased 
asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also 
added to the amount capitalised. Lease payments are apportioned between the finance charges and 
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of 
the liability. Finance charges are charged to profit statement. Contingent rents, if any, are charged as 
expenses in the periods in which they are incurred.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and 
the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the 
lease term.

Operating lease payments are recognised as an expense in profit statement on a straight-line basis 
over  the  lease  term.  The  aggregate  benefit  of  incentives  provided  by  the  lessor  is  recognised  as  a 
reduction of rental expense over the lease term on a straight-line basis.

(b)  As Lessor

Leases where the Group retains substantially all the risks and rewards of ownership of the asset are 
classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added 
to the carrying amount of the leased asset and recognised over the lease term on the same bases as 
rental  income.  The  accounting  policy  for  rental  income  is  stated  in  Note  2.19.  Contingent  rents  are 
recognised as revenue in the period in which they are earned.

(c)  Other Long-Term Assets

For  finance  leases  where  the  minimum  lease  payments  have  been  fully  received  by  the  Group,  the 
other long-term assets represents the unguaranteed residual value which is the portion of the residual 
value of the leased asset, the realisation of which by the lessor is not assured or is guaranteed solely 
by a party related to the lessor. Lessors shall initially recognise such assets in their balance sheets and 
present them as a receivable at an amount equal to the net investment in the lease. For subsequent 
measurement,  the  recognition  of  finance  income  shall  be  based  on  a  pattern  reflecting  a  constant 
periodic rate of return on the lessor’s net investment in the lease. Estimated unguaranteed residual 
values used in computing the lessor’s gross investment in a lease are reviewed regularly. If there has 
been a reduction in the estimated unguaranteed residual value, the income allocation over the lease 
term is revised and any reduction in respect of amounts accrued is recognised immediately.

2.27  Exceptional Items

Exceptional  items  are  one-off  items  of  income  and  expense  of  such  size,  nature  or  incidence  that  their 
disclosure is relevant to explain the performance of the Company and Group for the year arising from non-
recurring and non-operating transactions.

2.28  Share Capital and Share Issuance Expenses

Proceeds  from  issuance  of  ordinary  shares  and  redeemable  preference  shares  are  recognised  as  share 
capital in equity. Incremental costs directly attributable to the issuance of such shares are deducted against 
share capital.

138

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
 
 
 
 
 
 
2.  

SUMMAR Y O F S IGNIF ICAN T AC C OUNTI NG POL ICI ES ( CO NT’D)

2.29  Related Parties

A related party is defined as follows:

(a) 

A person or a close member of that person’s family is related to the Group and the Company if that 
person:

(i) 

Has control or joint control over the Company;

(ii) 

Has significant influence over the Company; or

(iii) 

 Is a member of the key management personnel of the Group or Company or of a parent of the 
Company.

(b)  An entity is related to the Group and the Company if any of the following conditions applies:

(i) 

(ii) 

 The entity and the Company are members of the same group (which means that each parent, 
subsidiary and fellow subsidiary is related to the others);

 One entity is an associate or joint venture of the other entity (or an associate or joint venture of 
a member of a group of which the other entity is a member);

(iii) 

Both entities are joint ventures of the same third party;

(iv) 

One entity is a joint venture of a third entity and the other entity is an associate of the third entity;

(v) 

 The entity is a post-employment benefit plan for the benefit of employees of either the Company 
or  an  entity  related  to  the  Company.  If  the  Company  is  itself  such  a  plan,  the  sponsoring 
employers are also related to the Company;

(vi) 

The entity is controlled or jointly controlled by a person identified in (a);

(vii) 

 A person identified in (a)(i) has significant influence over the entity or is a member of the key 
management personnel of the entity (or of a parent of the entity).

2.30  Contingencies

A contingent liability is:

(a) 

(b) 

a possible obligation that arises from past events and whose existence will be confirmed only by the 
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of 
the Group and the Company; or

a present obligation that arises from past events but is not recognised because it is not probable that 
an outflow of resources embodying economic benefits will be required to settle the obligation or the 
amount of obligation cannot be measured with sufficient reliability.

Contingent  liabilities  are  not  recognised  on  the  balance  sheet  of  the  Group  and  the  Company,  except  for 
contingent  liabilities  assumed  in  a  business  combination  that  are  present  obligations  and  which  the  fair 
values can be reliably determined.

139

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
 
 
 
 
 
 
 
3.  

REVENUE

Properties held for sale
   – recognised on completed contract method
   – recognised on percentage of completion method

Rent and related income
Management fee income
Hotel income
Others

4. 

COST  OF S ALES

Properties held for sale

5. 

OTHER  IN CO M E/ (LO SSE S)

Fair value gain/(loss) on foreign currency forward contracts
Foreign exchange (loss)/gain
Loss on disposal of property, plant and equipment
Others

Group

2014
$'000

2013
$'000

1,527,052
694,381
2,221,433

769,310
872,043
1,641,353

371,490
67,732
60,757
13,499
2,734,911

334,983
64,926
–
11,487
2,052,749

Group

2014
$'000

2013
$'000

(1,704,708)

(1,241,094)

Group

2014
$'000

1,490
(2,208)
(2,820)
208
(3,330)

2013
$'000

(3,922)
1,899
(625)
87
(2,561)

140

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 20146.  

TR ADI NG PRO F IT

Trading profit is stated after crediting:
Write-back of allowance for doubtful trade receivables
Reversal of write-down to net realisable value of completed  

properties held for sale

and charging:
Write down to net realisable value of properties held for sale
Allowance for doubtful trade receivables
Depreciation of property, plant and equipment
Amortisation of intangible assets
Audit fees paid to:
   – auditors of the Company
   – other auditors
Non-audit fees paid to:
   – auditors of the Company
   – other auditors
Property tax
Directors of the Company:
  – Fee
  – Remuneration of members of Board Committees
  – Remuneration
  – Provident Fund contribution
  – Employee share-based expense
Resigned Directors of the Company:
  – Fee
  – Remuneration of members of Board Committees
  – Remuneration
Key executive officers:
  – Remuneration
  – Provident Fund contribution
  – Employee share-based expense
Staff costs
Defined contribution plans
Employee share-based expense

Group

2014
$'000

2013
$'000

Note

22

1,932

2,041

–

137

22
15
20(a)

4,199
1,093
8,199
538

632
1,750

240
337
20,856

622
499
–
–
–

32
17
–

6,282
66
2,178
94,537
7,670
3,081

8,589
2,556
7,655
498

535
924

827
1,052
20,114

–
–
3,066
19
1,587

–
–
62

5,153
101
1,344
56,583
5,053
2,453

141

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014Note

18

Note

20(b)

Group

2013
$'000

–
–

2014
$'000

125
177

Group

2014
$'000

2013
$'000

8,443
7,143
13,509
29,095

–
400

2,150
–
31,645

3,880
6,382
6,666
16,928

290
800

–
441
18,459

Group

2014
$'000

2013
$'000

(23,887)
(19,063)
(42,950)

–
(42,950)

(21,291)
(57,439)
(78,730)

(698)
(79,428)

7.  

IN VES T MEN T INCOM E

Dividend income from available-for-sale financial assets
Write-back of provision for impairment of an associate

8. 

IN TEREST  INCOM E

Interest income from loans and receivables
   –  related companies
   –  non-controlling interest
   –  fixed deposits and bank balances

Interest income from available-for-sale assets
   –  quoted non-equity investments
Interest income accretion from other long-term assets
Interest rate swaps
   –  unrealised
   –  realised

9. 

IN TERES T EX PEN SE

Interest expense
   –  loans and borrowings
   –  related companies

Interest rate swaps
   –  unrealised

142

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201410.   EXCEPTIO NAL  IT EMS

Gain on disposal of investment properties to an associate
Loss on redemption of quoted non-equity investments
Write-back of over-provision of bank profit share
Write off of Part Consideration of the Loans
(Loss)/gain on dilution in an associate's interest
Transaction costs on acquisition of subsidiaries
Gain on disposal of financial assets
Share of associates' exceptional items

Note

14

27
27

16(b)

2014
$'000

14,729
–
3,114
(41,776)
(637)
(88,111)
–
(7,106)
(119,787)

Group

2013
$'000

–
(622)
4,337
–
1,162
–
35,260
6,272
46,409

Current  year’s  share  of  associates’  exceptional  items  relates  to  share  of  an  associate’s  transaction  costs 
arising from acquisition of investment properties. Prior year’s share of exceptional items relates to associates’ 
gain on disposal of investment properties.

Included  in  exceptional  items  are  audit  fees  paid  to  other  auditors  of  $122,000  (2013:  Nil),  non-audit  fees 
paid to auditors of the Company of $624,000 (2013: Nil) and non-audit fees paid to other auditors of $318,000  
(2013: Nil).

11.  TAXATI ON

Based on profit for the year:
Current taxation
Withholding tax
Deferred taxation

Under/(over) provision in prior years:
Current taxation
Deferred taxation

Group

2014
$'000

2013
$'000

75,412
6,985
61,732
144,129

1,509
9,875
11,384
155,513

57,996
3,941
38,582
100,519

(3,163)
(773)
(3,936)
96,583

143

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201411.   TAXATI ON ( C ON T’D)

A reconciliation of the statutory tax rate to the Group’s effective tax rate applicable to profit before taxation and 
non-controlling interests for the years ended 30 September is as follows:

Singapore statutory rate
Income not subject to tax
Expenses not deductible for tax purposes
Utilisation of previously unrecognised tax losses
Under/(over) provision in prior years
Deferred tax benefits on losses not recognised
Effect of tax losses not recognised
Effect of different tax rates of other countries
Tax effect of fair value adjustments
Withholding tax
Transfer of losses under group relief
Others
Effective tax rate

Group

2014
%

17.0
(2.5)
5.8
(3.0)
1.6
0.4
0.3
3.5
(2.9)
1.0
–
1.1
22.3

2013
%

17.0
(1.6)
1.4
(1.0)
(0.5)
0.8
0.1
0.4
(5.6)
0.5
(0.2)
0.3
11.6

During  the  current  year,  in  relation  to  Year  of  Assessment  (“YA”)  2014,  certain  subsidiaries  in  Singapore 
have transferred losses of $7,956,000 (YA 2013: $72,706,000) to set off against the taxable income of other 
companies  in  the  Group.  In  the  profit  statement  for  the  year,  no  tax  benefits  were  recognised  on  the  tax 
losses utilised under the Singapore group relief system (FY 2013: $1,933,900). Tax benefits of $16,047,000 
(2013: $14,694,000) arising from the utilisation of group relief have not been recognised as they are subject 
to compliance with the relevant tax legislation governing group relief and agreement of the Inland Revenue 
Authority of Singapore.

In the United Kingdom, during the year the corporate tax rate was reduced from 23% to 21% effective from 1 
April 2014. In FY 2013, the corporate tax rate was reduced from 24% to 23% effective from 1 April 2013. 

As  at  30  September  2014,  certain  subsidiaries  have  unutilised  tax  losses  of  approximately  $639,555,000 
(2013: $253,389,000) and unabsorbed capital allowances of $9,537,000 (2013: Nil) available for set off against 
future  taxable  profits  and  taxable  capital  gains  respectively  of  which  deferred  tax  assets  of  $124,909,000 
(2013: $1,950,000) have been recognised. Included in the unutilised tax losses as at 30 September 2014 are 
$435,595,000 arising from acquisition of Australand Property Group, which $104,910,000 deferred tax assets 
are recognised as part of the Purchase Price Allocation (“PPA”) as disclosed in Note 16(b). The use of these 
tax losses is subject to certain statutory requirements being met in the various legal jurisdiction. Tax losses 
amounting to $13,020,000 (2013: 13,231,000) can be carried forward for 5 years subsequent to the year of the 
loss, while the remaining tax losses have no expiry dates.

144

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201412.   EARNI NG S PE R SH AR E

Basic and diluted earnings per share is computed by dividing the Group’s attributable profit (net of preference 
dividends paid) by the weighted average number of ordinary shares in issue during the financial year. The 
following table reflects the profit and share data used in the computation of basic and diluted earnings per 
share for the year ended 30 September:

Attributable profit to shareholders of the Company
   – before fair value change and exceptional items
   – after fair value change and exceptional items

Group

2014
$'000

2013
$'000

500,995
500,711

401,080
722,303

No. of Shares

'000

'000

Weighted average number of ordinary shares in issue

2,457,316

753,292

Basic and diluted earnings per share
   – before fair value change on investment properties and exceptional items
   – after fair value change on investment properties and exceptional items

20.4¢
20.4¢

53.2¢
95.9¢

There are no potential dilutive ordinary shares in existence for the years presented.

13.  SEGM ENT  INFOR MAT ION

The Group’s operating businesses are organised and managed separately according to the nature of activities. 
During  the  year,  the  Group  acquired  Australand  Property  Group  (“Australand”)  whose  operating  business 
include  residential,  commercial,  industrial  and  retail  development,  and  investment  in  income  producing 
commercial  and  industrial  properties,  property  trust  management  and  property  management.  All  of 
Australand’s operations are in Australia. As Australand is a significant business group, the Group manages 
it  as  a  separate  operating  business  segment  on  its  own.  With  the  inclusion  of  Australand,  the  Group’s 
operating business segments are namely investment properties, Real Estate Investment Trusts, development 
properties, serviced residences, Australand and corporate and others. Serviced residences comprise serviced 
apartments and related management consultancy services. 

The Group operates in six main geographical areas, namely, Singapore, Australia, Europe, China, Thailand 
and  others.  Geographical  segment  revenue  is  based  on  geographical  location  of  the  Group’s  customers. 
Geographical segment assets is based on geographical location of the Group’s assets. Segment accounting 
policies are the same as the policies described in Note 2. Inter-segment sales are based on terms agreed 
between the related companies.

145

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
13.   SEGM ENT  INFOR MAT ION  (C ON T ’D)

Year ended 30 September 2014 

The following table presents financial information regarding business segments:

Business segment

Investment
Properties
$'000

REIT
$'000

Development

Corporate

Properties Hospitality Australand
$'000

$'000

$'000

& Others Eliminations
$'000

$'000

Group
$'000

Revenue – external
Revenue – inter-segment
Revenue – intra-segment
Total revenue

Subsidiaries and joint 

ventures

Associates and equity –
   accounted entities

PBIT *
Interest income
Interest costs

Profit before fair value 
change, taxation and 
exceptional items
Fair value change on 

investment properties

Share of associates’ 

fair value change on 
investment properties

Profit before taxation and
  exceptional items
Exceptional items

Profit before taxation
Taxation

Profit for the year

Non-current assets
Current assets
Investments in associates 
and equity – accounted 
entities
Tax assets
Bank deposits and cash 

balances
Total assets

Liabilities
Loans and borrowings
Tax liabilities
Total liabilities

Other segment information
Additions to non-current 

assets

Additions to intangible 

assets
Depreciation
Write down to net realisable 
value of properties held 
for sale

Exceptional items

146

134,142
3,985
–
138,127

68,384

–
–
–
–

–

2,235,682
–
–
2,235,682

267,898
–
9,531
277,429

47,110
–
–
47,110

50,079
35,524
19,694
105,297

– 2,734,911
–
(39,509)
(29,225)
–
(68,734) 2,734,911

494,547

67,782

5,599

518

–

54,389

(3,792)

–

803

1,132

68,384

54,389

490,755

67,782

6,402

1,650

63,315

–

–

56,249

–

–

17,047

–

–

–

–

1,879

–

–

–

–

–

636,830

52,532

689,362
31,645
(42,950)

678,057

80,362

58,128

816,547
(119,787)

696,760
(155,513)

541,247

3,225,273
14,696

–
–

13,527 1,225,443 3,292,323
278,546 1,705,422

4,343,867

232,023
65,729

– 7,988,589
– 6,408,260

– 1,245,261

136,832

–

112,081

4,881

76,319

–

1,027,830

181,243

352,269

194,252

744,001

–
116

–

–
–

102

21,623

7,929

2,532

–
85

–
6,743

446,348
487

162
778

–
–

–
(7,744)

4,199
3,114

–
(1,787)

–
(53,606)

–
(59,764)

– 1,499,055
111,983

883,604
16,891,491

– 1,831,913
7,616,375
355,428
9,803,716

–

–
–

–
–

776,187

446,510
8,209

4,199
(119,787)

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
13.   SEGM ENT  INFOR MAT ION  (C ON T ’D)

Year ended 30 September 2014 (cont’d)

Business segment

Investment
Properties
$'000

REIT
$'000

Development

Corporate

Properties Hospitality Australand
$'000

$'000

$'000

& Others Eliminations
$'000

$'000

Group
$'000

Attributable profit before
   exceptional items
Exceptional items
Attributable profit

113,616
–
113,616

102,219
(7,744)
94,475

351,640
2,492
354,132

40,111
(7,839)
32,272

(8,794)
(53,606)
(62,400)

28,380
(59,764)
(31,384)

–
–
–

627,172
(126,461)
500,711

The following table presents financial information regarding geographical segments:

Geographical segment

Singapore

Australia

$'000

$'000

Europe

$'000

China

$'000

Thailand

Others(1)

$'000

$'000

Group

$'000

Total revenue

PBIT *

1,140,087

1,011,220

400,673

147,135

291,918

87,328

238,659

39,121

7,582

3,314

45,445

11,791

2,734,911

689,362

Non-current assets

Current assets
Investments in associates
   and equity – accounted 

entities

Tax assets
Bank deposits and cash
   balances

Total assets

Liabilities

Loans and borrowings

Tax liabilities

Total liabilities

Other segment information
Additions to non-current
   assets

Additions to intangible assets

Depreciation
Write down to net realisable 

value of properties held for 
sale

Exceptional items

3,575,046

3,720,152

2,425,013

3,011,479

300,374

251,669

260,859

562,910

7

132,151

7,988,589

35,901

121,288

6,408,260

1,249,634

112,081

–

88,937

47,896

507

1,499,055

111,983

883,604

16,891,491

847,608

573,875

108,904

289,791

616

11,119

1,831,913

7,616,375

355,428

9,803,716

747,828

162

2,082

24,800

446,348

3,268

–

–

(56,492)

(67,956)

2,644

–

1,346

2,076

4,661

300

–

973

–

–

–

–

3

–

–

615

–

537

776,187

446,510

8,209

2,123

4,199

–

(119,787)

*   PBIT – Profit before interest, fair value change, taxation and exceptional items.
(1)  Others – New Zealand, Vietnam, Philippines, Indonesia and Malaysia.

147

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
13.   SEGM ENT  INFOR MAT ION  (C ON T ’D) 

Year ended 30 September 2013

The following table presents financial information regarding business segments:

Business segment

Investment
Properties
$'000

Development

REIT
$'000

Properties Hospitality
$'000

$'000

136,224
2,346
–
138,570

63,032

–
–
–
–

–

1,682,379
–
–
1,682,379

183,833
484
9,661
193,978

375,454

69,658

–

54,452

3,923

–

63,032

54,452

379,377

69,658

Corporate
& Others
$'000

50,313
38,660
15,824
104,797

3,458

1,161

4,619

Revenue – external
Revenue – inter-segment
Revenue – intra-segment
Total revenue

Subsidiaries and joint 

ventures

Associates and equity –
  accounted entities

PBIT *
Interest income
Interest costs

Profit before fair value
   change, taxation and
   exceptional items
Fair value change on

investment properties
Share of associates’ fair
   value change on 

investment properties

Profit before taxation
   and exceptional items
Exceptional items

Profit before taxation
Taxation

Profit for the year

Non-current assets
Current assets
Investments in associates
   and equity – accounted
   entities
Tax assets
Bank deposits and cash
   balances
Total assets

Liabilities
Loans and borrowings
Tax liabilities
Total liabilities

129,960

–

–

107,771

–

–

35,923

–

–

2,089

1,759,211
289,847

–
–

14,320
4,786,822

1,429,336
347,755

67,866
184,428

–

910,897

142,232

–

2,854

250,240

–

1,620,576

276,872

784,205

Other segment information
Additions to non-current 

assets

Additions to intangible 

assets
Depreciation
Write-down to net realisable
   value of properties held 

for sale

Exceptional items

24,062

–
139

–
–

148

–

–
–

101

–
308

77,157

13,385

–
6,480

143
770

–
5,512

8,452
4,337

–
–

–
36,560

Eliminations
$'000

Group
$'000

–
(41,490)
(25,485)
(66,975)

2,052,749
–
–
2,052,749

–

–

–

–

–

–
–

–

–

–

–
–

–
–

511,602

59,536

571,138
18,459
(79,428)

510,169

165,883

109,860

785,912
46,409

832,321
(96,583)

735,738

3,270,733
5,608,852

1,055,983
2,937

506,784
10,445,289

2,931,893
1,804,508
230,602
4,967,003

114,705

143
7,697

8,452
46,409

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
  
13.   SEGM ENT  INFOR MAT ION  (C ON T ’D)

Year ended 30 September 2013 (cont’d)

Business segment

Investment
Properties
$'000

Development
Properties
$'000

REIT
$'000

Hospitality
$'000

Corporate
& Others
$'000

Eliminations
$'000

Group
$'000

Attributable profit before 

exceptional items

Exceptional items
Attributable profit

176,147
–
176,147

156,927
5,512
162,439

281,908
3,470
285,378

68,754
–
68,754

(6,974)
36,559
29,585

–
–
–

676,762
45,541
722,303

The following table presents financial information regarding geographical segments:

Geographical segment

Singapore
$'000

Australia
$'000

Total revenue
PBIT *

1,583,514
499,352

187,105
4,230

Europe
$'000

81,321
18,465

2,371,445
3,016,155

88,086
1,526,822

428,029
337,241

China
$'000

Thailand
$'000

Others(1)
$'000

Group
$'000

157,409
29,552

259,841
580,027

20,328
7,896

10
42,038

23,072
11,643

2,052,749
571,138

123,322
106,569

3,270,733
5,608,852

Non-current assets
Current assets
Investments in associates 
and equity – accounted 
entities
Tax assets
Bank deposits and cash

balances
Total assets

Liabilities
Loans and borrowings
Tax liabilities
Total liabilities

Other segment information
Additions to non-current 

assets

Additions to intangible assets
Depreciation
Write- down to net realisable 
value of properties held 
for sale

Exceptional items

913,547

–

–

97,252

44,980

204

2,133,113

378,160

211,224

163,444

8,298

37,654

1,055,983
2,937

506,784
10,445,289

2,931,893
1,804,508
230,602
4,967,003

26,642
143
2,298

–
42,072

61,375
–
1,639

26,255
–
2,011

8,589
–

(137)
4,337

184
–
1,148

–
–

1
–
4

–
–

248
–
597

–
–

114,705
143
7,697

8,452
46,409

*   PBIT – Profit before interest, fair value change, taxation and exceptional items.
(1)  Others – New Zealand, Vietnam, Philippines, Indonesia and Malaysia.

149

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
14.  

IN VES T MEN T PR OPE RT IES

Group
Balance Sheet
At Cost
At 1 October 2012
Currency re-alignment
Transfer upon completion
Additions
Fair value change

At 30 September 2013 and 1 October 2013
Currency re-alignment
Transfer from prepayments
Transfer from properties held for sale
Reclassification to other long-term assets
Additions
Disposals
Fair value change
Acquisition of subsidiaries
At 30 September 2014

Investment
Properties
Completed
Investment
Under
Properties Construction
$'000

$'000

Total
Investment
Properties
$'000

2,500,581
15,470
105,566
83,784
165,883

2,871,284
(40,581)
–
400,000
(101,848)
35,669
(499,409)
80,362
2,806,053
5,551,530

320,853
–
(105,566)
28,663
–

243,950
(634)
259,401
–
–
736,368
–
–
31,716
1,270,801

2,821,434
15,470
–
112,447
165,883

3,115,234
(41,215)
259,401
400,000
(101,848)
772,037
(499,409)
80,362
2,837,769
6,822,331

During the year, the Group disposed of $499,409,000 of investment properties under the hospitality segment 
to an associate. The gain on disposal amounted to $14,729,000 (Note 10). 

Profit Statement
Rental income from completed investment properties:
   – Minimum lease payments
   – Contingent rent based on tenants' turnover

2014
$'000

2013
$'000

269,980
1,989
271,969

229,995
2,894
232,889

Direct operating expenses (including repairs and maintenance) arising from:
   – Rental generating properties

128,052

85,933

150

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
14.  

IN VES T MEN T PR OPE RT IES ( C ON T’D )

Company
Balance Sheet
At Cost
At 1 October 2012
Fair value change

At 30 September 2013 and 1 October 2013
Fair value change
At 30 September 2014

(a)  Completed Investment Properties

Completed
Investment
Properties
$'000

1,550
100

1,650
(50)
1,600

Completed investment properties comprise serviced residences and commercial properties that are leased 
mainly to third parties under operating leases (Note 40).

Completed investment  properties  are stated at fair value which  has been  determined based on  valuations 
performed at balance sheet date. Valuations are performed by accredited internal or external independent 
valuers with recognised and relevant professional qualification and with recent experience in the location and 
category of the properties being valued. 

The  valuations  are  based  on  open  market  values  on  the  highest  and  best  use  basis  and  were  prepared 
primarily using the Direct Comparison Method, Income/Investment Approach, Discounted Cash Flow Analysis 
and Capitalisation Method. In relying on the valuation reports, management has exercised its judgement and 
is satisfied that the valuation methods and estimates are reflective of current market conditions.

151

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201414.  

IN VES T MEN T PR OPE RT IES ( C ON T’D )

(a)  Completed Investment Properties (cont’d)

Where external independent professional valuations were obtained, these were carried out by the following 
valuers:

Country

Singapore
United Kingdom
Australia

Philippines
Vietnam
Indonesia
China

2014
Valuers

2013
Valuers

Knight Frank Pte Ltd
Savills Commercial Limited
CBRE Valuations Pty Limited
Knight Frank Australia Pty Ltd
Jones Lang Lasalle Advisory
  Services Pty Limited
Savills Valuations Pty Ltd
CIVAS (VIC) Pty Limited
M3 Property Pty Ltd
Urbis Valuations Pty Limited
Asian Appraisal Company, Inc.
Colliers International
KJPP Rengganis, Hamid & Rekan
Savills Real Estate Valuation

Knight Frank Pte Ltd
Savills Commercial Limited
CBRE Valuations Pty Limited
–

–
–
–
–
–
Asian Appraisal Company, Inc.
Colliers International
KJPP Rengganis, Hamid & Rekan
Savills Real Estate Valuation

(Beijing) Company

(Beijing) Company

(b) 

Investment Properties under Construction

Investment property under construction is valued annually by internal or external valuers by estimating the 
fair value of the completed investment property and then deducting from that amount the estimated costs to 
complete the construction and a reasonable profit margin on construction and development. The estimated 
cost to complete is determined based on the construction cost per square metre in the pertinent area.

Where external independent professional valuations were obtained, these were carried out by the following 
valuers:

Country

2014
Valuers

2013
Valuers

Singapore

Knight Frank Pte Ltd

Knight Frank Pte Ltd

IPUC  amounting  to  approximately  $1,234,959,000  (2013:  $243,950,000)  have  been  mortgaged  to  banks  as 
securities for bank facilities.

152

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
15.   PR OPERTY,  PLANT  AND  EQ UIPM E NT

Group
Cost
At 1 October 2012
Currency re-alignment
Additions
Disposals/write-offs

At 30 September 2013 and
   1 October 2013
Currency re-alignment
Acquisition of subsidiaries
Additions
Disposals/write-offs
At 30 September 2014

Accumulated Depreciation
At 1 October 2012
Currency re-alignment
Charge for the year 2013
Disposals/write-offs

At 30 September 2013 and
  1 October 2013
Currency re-alignment
Charge for the year 2014
Acquisition of subsidiaries
Disposals/write-offs
At 30 September 2014

Net Book Value
At 30 September 2014
At 30 September 2013

Freehold
Land and
Buildings
$'000

Equipment,
Furniture
and Fittings
$'000

Motor
Vehicles
$'000

Others
$'000

Total
$'000

–
–
–
–

–
(1,599)
230,271
–
–
228,672

–
–
–
–

–
(18)
1,144
–
–
1,126

67,144
682
5,251
(2,299)

70,778
(1,812)
34,686
8,638
(30,259)
82,031

34,082
(532)
7,601
(1,674)

39,477
(699)
6,970
4,044
(16,333)
33,459

1,062
24
113
–

1,199
(14)
–
53
–
1,238

787
18
96
–

901
33
95
–
–
1,029

–
–
–
–

–
(362)
3,335
–
–
2,973

–
–
–
–

–
–
–
–
–
–

68,206
706
5,364
(2,299)

71,977
(3,787)
268,292
8,691
(30,259)
314,914

34,869
(514)
7,697
(1,674)

40,378
(684)
8,209
4,044
(16,333)
35,614

227,546
–

48,572
31,301

209
298

2,973
–

279,300
31,599

153

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201415.   PR OPERTY,  PLANT  AND  EQ UIPM E NT (CO NT’D )

Company
At Cost
At 1 October 2012, 30 September 2013,
  1 October 2013 and 30 September 2014

Accumulated Depreciation
At 1 October 2012
Charge for the year 2013

At 30 September 2013 and 1 October 2013
Charge for the year 2014
At 30 September 2014

Net Book Value
At 30 September 2014
At 30 September 2013

Equipment,
Furniture 
and
Fittings
$'000

53

51
1

52
1
53

–
1

The depreciation charge for the year is included in the financial statements as follows:

Charged to profit statement (Note 6)
Capitalised in properties held for sale

Group

2013
$'000

7,655
42
7,697

2014
$'000

8,199
10
8,209

Company

2014
$'000

2013
$'000

1
–
1

1
–
1

16. 

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES 

Company

2014
$'000

2013
$'000

1,689,533
(80,490)
1,609,043

1,637,117
(80,490)
1,556,627

Investments in subsidiaries
Unquoted shares, at cost
Allowance for impairment

154

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201416.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

Balances with subsidiaries
Amounts due from subsidiaries
   –  interest free
   –  interest bearing

Amounts due to subsidiaries
   –  interest free
   –  interest bearing
Net balances with subsidiaries

Note

22

27

Company

2014
$'000

2013
$'000

1,165,355
2,063,777
3,229,132

1,109,011
1,163,465
2,272,476

(521,993)
(125,425)
2,581,714

(938,299)
–
1,334,177

Amounts due from subsidiaries are non-trade related, unsecured and payable in cash. In respect of interest-
bearing amounts, interest of between 0.2% to 5.8% (2013: between 0.2% to 6.7%) per annum was charged.

Amounts due to subsidiaries are non-trade related, unsecured and payable in cash. In respect of interest-
bearing amounts, interest of 5.8% (2013: Nil) per annum was charged.

Balances which are payable on demand have been classified as current while balances with no fixed terms 
of repayment and not expected to be repaid within the next 12 months have been classified as non-current. 
Refer to disclosures in Notes 22 and 27 respectively.

Details of significant subsidiaries are included in Note 43.

(a) 

Incorporation/Constitution of Subsidiaries 

The following subsidiaries of the Group and Company were incorporated during the financial year:

Subsidiaries of the Group

Incorporated
in

Date of
Incorporation

Paid-up Capital

Group's
Effective
Interest

Frasers Hospitality Group Pte. Ltd.
Frasers Hospitality Asset Management 

Singapore

10 October 2013

S$500,000

100%

Pte. Ltd.

Singapore 20 November 2013

S$1,000,000

100%

Frasers Hospitality Trust Management 

Pte. Ltd.

FCL Bridgepoint Australia Pty Ltd
Frasers Hospitality Sydney Investments 

Singapore
Australia

13 January 2014
7 February 2014

Pty Ltd

Australia

23 May 2014

Frasers Hospitality Dalian Holding  

Pte. Ltd.

Frasers Hospitality Berlin  

Investments Ltd

Frasers Hospitality ML Pte. Ltd.
Frasers Sydney ML Hotel Pty Ltd
Frasers Amethyst Pte. Ltd.
Sembawang Residences Pte. Ltd.

Singapore
United 
Kingdom
Singapore
Australia
Singapore
Singapore

11 June 2014

17 June 2014
18 June 2014
19 June 2014
27 June 2014
13 August 2014

S$1
A$2

A$1

S$2

GBP2
S$1
A$1
S$1
S$1,000,000

100%
100%

100%

100%

100%
100%
100%
100%
80%

155

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201416.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries 

(i) 

On 24 April 2014, FCL (Fraser) Pte. Ltd. (“FCL (Fraser)”), a wholly-owned subsidiary of the Company, 
completed  the  acquisition  of  100%  shareholding  interest  in  Teycotel  BCN,  S.L.  (“Teycotel  BCN”),  a 
company incorporated in Spain. Teycotel BCN is the owner of “Hotel Porta Marina”, which is located in 
Barcelona, Spain. Teycotel BCN also holds all the shares in Teycotel Gestio Hotels, S.L., the operator 
of the Hotel. The consideration is approximately EUR1,078,000 (approximately S$1,868,000), and was 
arrived  at on a  “willing-buyer-willing-seller” basis,  taking into account the net tangible asset value 
of Teycotel BCN as at 31 March 2014 of approximately EUR877,000 (approximately S$1,518,000). The 
purchase price was paid in cash and funded from internal sources. As part of the acquisition, by way of 
shareholder’s loan to Teycotel BCN, FCL (Fraser) procured repayment of certain outstanding loans and 
debts owing by Teycotel Gestio amounting to approximately EUR4,528,000 (approximately S$7,840,000). 

The fair value of the identifiable assets and liabilities of Teycotel BCN as at acquisition date were:

Fair Value
Recognised on
Acquisition
$'000

26,460
674
978
73
28,185

(868)
(24,621)
(25,489)

2,696
(828)
1,868

1,868
(73)
1,795

Investment properties
Property, plant and equipment
Trade and other receivables
Cash and cash equivalents

Trade and other payables
Bank borrowings

Total identifiable net assets at fair value
Negative goodwill arising from acquisition

Total consideration
Cash of subsidiary acquired
Net cash outflow on acquisition of subsidiary

156

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
16.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries (cont’d)

Negative goodwill arising from acquisition

The negative goodwill of $828,000 arose due to excess of fair value of its identifiable net assets over 
consideration. The negative goodwill recognised is not expected to be taxable for income tax purposes.

Impact of the acquisition on profit statement

From the acquisition date, Teycotel BCN has contributed $2,204,000 of revenue and $697,000 to the 
Group’s profit for the year. If the business combination had taken place at the beginning of the year, the 
contribution by Teycotel BCN to the Group’s revenue and Group’s profit for the year would have been 
$2,915,000 and $384,000 respectively.

(ii) 

On 20 June 2014, Frasers Hospitality Investments Melbourne Pte. Ltd., a wholly-owned subsidiary of 
the Company, completed the acquisition of 100% unitholding in Lasalle 61 Philip Sub Trust, a unit trust 
established in Australia by a trust deed and 100% of the issued share capital of Ananke Holdings Pty 
Ltd (“Ananke”), a company incorporated in Australia (collectively, the “Sofitel”). 

The  aggregate  consideration  for  the  acquisition  was  approximately  A$202.7  million  (approximately 
S$237.2 million), and was arrived at on a “willing-buyer-willing-seller” basis, taking into account the 
valuation  of  the  hotel,  Sofitel  Wentworth  Sydney,  of  approximately  A$202.0  million  (approximately 
S$236.3 million), the net cash and accounts receivable and payable of the Sub Trust and Ananke of 
approximately A$1.7 million (approximately S$2.0 million). The purchase price was paid in cash and 
funded from borrowings and internal resources.

The fair value of the identifiable assets and liabilities of subsidiaries as at the acquisition date were:

Property, plant and equipment
Trade and other receivables
Cash and cash equivalents

Trade and other payables

Total identifiable net assets at fair value
Goodwill arising from acquisition
Total consideration
Cash of subsidiaries acquired
Cash outflow on acquisition of subsidiaries

Transaction costs

Fair Value
Recognised on
Acquisition
$'000

230,068
20,535
8,936
259,539

(26,932)

232,607
1,451
234,058
(8,936)
225,122

Transaction costs related to the acquisition of $12,901,000 have been recognised in the “Exceptional 
Items” in the Group’s profit statement for the year ended 30 September 2014.

157

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201416.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries (cont’d) 

Goodwill arising from acquisition

The  goodwill  of  $1,451,000  represents  excess  purchase  consideration  paid  over  the  fair  value  of  its 
identifiable net assets and is written off in the “Exceptional Items” in the Group’s profit statement for 
the year ended 30 September 2014. None of the goodwill recognised is expected to be deductible for 
income tax purposes.

Impact of the acquisition on profit statement

From the acquisition date, Sofitel has contributed revenue of $14,596,000 and loss of $1,382,000 to the 
Group’s profit for the year. If the business combination had taken place at the beginning of the year, 
the contribution by Sofitel to the Group’s revenue and the Group’s profit for the year would have been 
$53,650,000 and gain of $2,649,000, respectively.

Provisional accounting of the acquisition of Sofitel

As a consequence of the acquisition, a new tax consolidated group would be created in Sydney whereby 
the  tax  bases  of  the  subsidiaries  would  be  reset  and  taxes  would  be  recomputed  and  reassessed. 
Accordingly, the deferred tax liabilities as at 30 September 2014 have been provisionally determined 
and would be adjusted accordingly on a retrospective basis when the tax provisions are finalised.

(iii) 

On 14 July 2014, Frasers Hospitality ML Pte. Ltd. (“FHML”), a wholly-owned subsidiary of the Company, 
completed  the  acquisition  of  K.K.  Shinkobe  Holding  (“SKH”)  and  P  I  Hotel  Management  Limited 
(“PIHML”).

On 17 July 2014, FHML completed the acquisition of BCH Hotel Investment Pte Ltd (“BCH”), JBB Hotels 
Sdn. Bhd. (“JBB”), Golden Shower Development (PTC) Ltd. (in its capacity as trustee of Viewgrand Trust 
C) (“GSD”) and Viewgrand Trust C (“Trust C”).

The acquired entities are the master lessees and tenants of the six hotels that Frasers Hospitality Trust 
acquired from TCC Group. The consideration for the shares for each of the entities is set out in the table 
below. The sellers are part of the TCC Group.

Operating
Entities

BCH

JBB

SKH

PIHML

Viewgrand  
  Trust C
GSD (as trustee  
  of Viewgrand  
  Trust C)

Seller

Purchaser

Consideration

Net Tangible
Asset Value

Pacific Coast Assets Inc. Frasers Hospitality

SGD5,254,419

SGD3,725,280

Newood Assets Limited

Excellence Prosperity
   (Singapore) Pte Ltd
Rakestone Limited,
   Reenstone Limited 
   and Global-Link 
   Investments Limited
Yellowood Development
   (PTC) Ltd
Mr Chia Kwok Ping

   ML Pte. Ltd.
Frasers Hospitality
   ML Pte. Ltd.
Frasers Hospitality
   ML Pte. Ltd.
Frasers Hospitality
   ML Pte. Ltd.

Frasers Sydney ML
   Hotel Pty Ltd
Frasers Sydney ML
  Hotel Pty Ltd

MYR4,170,888 MYR4,170,888

JPY449,326,178 JPY255,142,938

GBP2,902,959

GBP2,902,959

AUD2,248,018

AUD2,248,018

USD1

USD1

158

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201416.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries (cont’d) 

(iii) 

The consideration was arrived at on a “willing-buyer-willing-seller” basis and based on the net asset 
value of each of the entities. The consideration was paid in cash on completion and funded from internal 
sources.

The fair value of the identifiable assets and liabilities of subsidiaries as at the acquisition date were:

Trade and other receivables
Cash and cash equivalents
Deferred tax assets

Trade and other payables

Total identifiable net assets at fair value
Goodwill arising from acquisition
Total consideration
Cash of subsidiaries acquired
Cash inflow on acquisition of subsidiaries

Transaction costs

Fair Value
Recognised on
Acquisition
$'000

24,171
46,567
1,845
72,583

(55,501)

17,082
3,818
20,900
(46,567)
(25,667)

Transaction  costs  related  to  the  acquisition  of  $1,294,000  have  been  recognised  in  the  “Exceptional 
Items” in the Group’s profit statement for the year ended 30 September 2014.

Goodwill arising from acquisition

The  goodwill  of  $3,818,000  represents  excess  purchase  consideration  paid  over  the  fair  value  of  its 
identifiable net assets and is written off in the “Exceptional Items” in the Group’s profit statement for 
the year ended 30 September 2014. None of the goodwill recognised is expected to be deductible for 
income tax purposes. 

Impact of the acquisition on profit statement

From  the  acquisition  date,  the  operating  entities  contributed  revenue  of  $46,160,000  and  loss 
of  $4,057,000  to  the  Group’s  profit  for  the  year.  If  the  business  combination  had  taken  place  at  the 
beginning  of  the  year,  the  revenue  and  profit  net  of  tax  contributed  by  the  operating  entities  to  the 
Group would have been $220,288,000 and $18,610,000 respectively.

159

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
16.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries (cont’d) 

(iv) 

On 1 July 2014, the Group, through its wholly-owned subsidiary, Frasers Amethyst Pte. Ltd. (“Frasers 
Amethyst”) launched an off-market take over offer (the “Offer”) to acquire up to 100% of Australand 
Property Group (“Australand”) for A$4.48 cash per Australand security.

Australand  is  one  of  Australia’s  leading  diversified  property  groups  with  activities  that  span  across 
Australia  and  property  segments.  The  acquisition  of  Australand  is  expected  to  deliver  significant 
benefits to the Group, including:

1. 

2. 

3. 

4. 

Increasing contribution from outside of Singapore;

Increasing contribution from recurring income, which correspondingly increase the stability and 
visibility of the Group’s earnings;

A quality platform with immediate scale in Australia, a core market;

Ownership of an attractive commercial and industrial portfolio with development capabilities in 
Australia; and

5. 

Enhancing the Group’s residential development capabilities in Australia.

The  offer  closed  in  accordance  with  the  bidder’s  statement  of  FCL  Bidder  dated  1  July  2014  (as 
supplemented by FCL Bidder’s supplementary bidder’s statement dated 31 July 2014) (the “Bidder’s 
statement”).

As at 30 September 2014, together with on-market purchases, the Group acquired 98.6% shareholdings 
in Australand. The Group was entitled to mandatorily purchase the remaining 1.4% which was completed 
on 31 October 2014. As at 30 September 2014, the Group accrued for the cost of the remaining 1.4% and 
consolidated Australand as a wholly-owned subsidiary. 

Transaction costs

Transaction costs related to the acquisition of $69,475,000 have been recognised in “Exceptional Items” 
in the Group’s profit statement for the year ended 30 September 2014.

Goodwill arising from acquisition

The Group has engaged an independent firm to perform purchase price allocation exercise (“PPA”) for 
Australand. Based on the PPA, part of the consideration paid for the net assets acquired have been 
identified and provisionally allocated to properties held for sale, deferred tax assets and liabilities and 
brand, and the residual excess of consideration paid over the fair values of identifiable net assets have 
been recorded as goodwill amounting to $431,879,000.

Impact of the acquisition on profit statement

From the acquisition date, Australand has contributed revenue of $47,110,000 and loss for the period 
of  $8,794,000  to  the  Group.  Australand  has  a  financial  year  end  of  31  December.  If  the  business 
combination had taken place at the beginning of Australand’s financial year, Australand’s contribution 
to the Group’s revenue and Group’s profit after tax would have been $475.7 million and $115.5 million, 
respectively.

160

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
 
 
16.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  SUB S ID IA RIES  (CO NT’D)

(b)  Acquisition of Subsidiaries (cont’d) 

Provisional accounting of the acquisition of Australand

As at 30 September 2014, the fair value of the Australand brand of $23,098,000, fair value of properties 
held  for  sale  of  $1,616,052,000,  deferred  tax  assets  of  $104,910,000,  deferred  tax  liabilities  of 
$37,513,000  and  goodwill  of  $431,879,000  have  been  determined  on  a  provisional  basis  as  the  final 
results  of  the  PPA  have  not  been  received  by  the  date  the  financial  statements  was  authorised  for 
issue. Goodwill arising from this acquisition, the carrying amounts of the brands and properties held 
for sale, deferred tax assets and liabilities will be adjusted accordingly on a retrospective basis when 
the valuations of the brands, properties held for sale and taxes are finalised.

The fair value of the identifiable assets and liabilities of Australand as at the acquisition were:

Investment properties
Property, plant and equipment
Investment in equity – accounted entities
Intangible assets
Properties held for sale
Deferred tax assets (net)
Trade and other receivables and prepayments
Cash and cash equivalents

Trade and other payables
Bank borrowings

Total identifiable net assets at fair value
Goodwill arising from acquisition
Total consideration
Cash of subsidiaries acquired
Cash outflow on acquisition of subsidiaries

Fair Value
Recognised on
Acquisition
$'000

2,811,309
33,506
115,827
23,569
1,616,052
67,397
173,560
86,716
4,927,936

(612,725)
(1,721,275)
(2,334,000)

2,593,936
431,879
3,025,815
(86,716)
2,939,099

161

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
17.  

IN VES T MEN TS I N AND  BALANC ES  W I TH  JOI NT  VE NTU RES

Investments in joint ventures
Unquoted investments, at cost

Balances with joint ventures
Loans from joint ventures

Company

2014
$'000

2013
$'000

Note

500

500

27

(98,918)

(50,568)

Loans to joint ventures are interest free, unsecured and repayable in cash on demand.

Details of joint ventures are included in Note 43.

The  aggregate  amounts  of  current  assets,  non-current  assets,  current  liabilities,  non-current  liabilities, 
income and expenses related to the Group’s interests in the joint ventures are as follows:

Group

2014
$'000

2013
$'000

409,790
85,259
495,049

306,684
105,131
411,815

1,177,915
384,872
1,562,787

659,144
542,609
1,201,753

Group

2014
$'000

2013
$'000

708,319
8,899
(493,461)
(3,478)
19
(39,354)
180,944

602,524
34,934
(441,707)
(4,218)
–
(27,154)
164,379

Assets and Liabilities
Current assets
Non-current assets
Total assets

Current liabilities
Non-current liabilities
Total liabilities

Results
Revenue
Fair value change on investment properties
Cost of sales and expenses
Interest expense
Interest income
Taxation
Profit for the year

162

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201418.  

IN VES T MEN TS IN AND  BA LA NCES  WITH A SSOC IATE S A ND  E QU ITY – AC C OU NTE D EN TITIES

Group

Company

Note

2014
$'000

2013
$'000

2014
$'000

2013
$'000

Investments in associates and
   equity – accounted entities
Shares, at cost
Negative goodwill on acquisition
Share of post-acquisition reserves
Allowance for impairment

Balances
Loans to
  –  non-current – associates
  –  non-current – equity – accounted entities
   –  current – associates
   –  current – equity – accounted entities

22
22
22
22

1,205,093
97,074
196,888
–
1,499,055

784,061
97,712
174,387
(177)
1,055,983

–
–
–
–
–

88,833
17,917
18,227
10,012
134,989

77,675
–
8,071
–
85,746

–
–
8,313
–
8,313

Loan (from)
   –  non-current – an associate

Investments are represented by:
Quoted instruments
  Market value: $1,196,063,000 

(2013: $854,938,000)

Unquoted instruments

27

(40,912)

–

1,245,261

910,897

253,794
1,499,055

145,086
1,055,983

–

–

–
–

–
–
–
–
–

–
–
–
–
–

–

–

–
–

Except  for  $63,617,000  (2013:  $63,617,000)  which  bear  interest  at  6.2%  (2013:  6.2%)  per  annum  and  are 
repayable in November 2022, non-current loans to associates are unsecured, interest free, payable in cash 
and have no fixed repayment terms.

The loan from an associate of $40,912,000 (2013: Nil) bears interest at 6.2% (2013: Nil) per annum, is unsecured 
and is repayable in September 2016.

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

Allowance for impairment
At 1 October
Write-back of allowance
At 30 September

177
(177)
–

177
–
177

–
–
–

–
–
–

163

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
18.  

 IN VES T MEN TS IN AND  BA LA NCES  WITH A SSOC IATE S A ND  E QU ITY – AC C OU NTE D EN TITIES 
(CONT’D )

(a)

Share of results of associates and equity- accounted entities
Share of results
Share of exceptional items
Share of fair value change on investment properties
Profit for the year

Share of other comprehensive income of associates and equity 
  –  accounted entities comprise of:

Share of capital reserve
Share of foreign translation reserve
Share of fair value reserve
Share of hedging reserve
Other comprehensive income for the year

(b)  Frasers Centrepoint Trust (“FCT”) 

(i) 

Payment of Management Fees by Way of Units in FCT

Group

2014
$'000

2013
$'000

52,532
(7,106)
58,128
103,554

59,536
6,272
109,860
175,668

(723)
(3,143)
468
(70)
(3,468)

109
(15,507)
(33)
382
(15,049)

The  Group,  through  its  subsidiary,  Frasers  Centrepoint  Asset  Management  Ltd.  (“FCAM”)  as  the 
manager of FCT, received the following Units in FCT in payment of 20% of its management fees for the 
year from 1 October 2013 to 30 September 2014 (the “Relevant Period”):

Relevant Period

Date Received

No. of
Units
Received

Issued
Price
 $ 

Value of
Units
Received
 $ 

Aggregate of

Aggregate of
FCT Units FCT Units held
held by FCAM by the Group

1 July 2013 to
  30 September 2013

1 October 2013 to
  31 December 2013

1 January 2014 to
  31 March 2014

1 April 2014 to
   30 June 2014

24 October 2013

321,640 

 1.8515 

595,516 

25,074,435 

338,574,435 

23 January 2014

350,516 

 1.7506 

613,613 

25,424,951 

338,924,951 

24 April 2014

345,392 

 1.7605 

608,063 

25,770,343 

339,270,343 

24 July 2014

352,747 

 1.8638 

657,450 
2,474,642 

26,123,090 

339,623,090 

The payment of such fees in the form of Units is provided for in the Trust Deed constituting FCT dated 5 
June 2006. The Issue Price is the volume weighted average price of the Units traded on the Singapore 
Exchange Securities Trading Limited for the last ten business days of the Relevant Period.

164

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
18.  

 IN VES T MEN TS IN AND  BA LA NCES  WITH A SSOC IATE S A ND  E QU ITY – AC C OU NTE D EN TITIES 
(CONT’D )

(b)  Frasers Centrepoint Trust (“FCT”) (cont’d)

(ii)  Acquisition Fees

The  Group,  through  FCAM,  received  1,662,125  Units  in  FCT  issued  at  a  price  of  $1.835  per  Unit,  in 
payment of acquisition fee of $3,050,000 payable in respect of the acquisition by FCT of Changi City 
Point, calculated at 1.0% of $305.0 million, the purchase consideration for the acquisition, which was 
completed on 16 June 2014. 

(iii)  Private Placement of 36,171,000 New Units in FCT

On 16 June 2014, FCT acquired Changi City Point for a purchase consideration of $305.0 million from 
Ascendas Frasers Pte. Ltd., a joint venture of the Group. The acquisition is financed with a combination 
of equity and debt financing. Equity financing is in the form of a private placement of a total of 88.0 
million  new  units  in  FCT,  of  which  FCL  Trust  Holdings  Pte.  Ltd.,  a  wholly-owned  subsidiary  of  the 
Company, is placed 36,171,000 units.

With the above payments of management fees and acquisition fees by way of Units in FCT and private 
placement of new units, the Group and FCAM hold an aggregate of 377,456,215 and 27,785,215 Units in 
FCT, representing 41.2% and 3.0% of the total issued FCT Units, respectively.

(c)  Frasers Commercial Trust (“FCOT”)

Payment of Management Fees by way of Units in FCOT

The Group, through its subsidiary, Frasers Centrepoint Asset Management (Commercial) Ltd. (“FCAMC”) as 
the manager of FCOT, received the following units in FCOT in payment of approximately 45% to 80% of its 
management fees for the year from 1 October 2013 to 30 September 2014 (the “Relevant Period”):

Relevant Period

Date Received

No. of
Units
Received

Issued
Price
$

Value of
Units
Received
$

Aggregate of

Aggregate of
FCOT Units FCOT Units held
by the Group

held by FCAMC

1 July 2013 to
  30 September 2013

1 October 2013 to
  31 December 2013

1 January 2014 to
  31 March 2014

1 April 2014 to
  30 June 2014

25 October 2013

1,539,732

1.2533

1,929,746

83,378,546

184,763,525

24 January 2014

586,569

1.2552

736,261

83,965,115

185,350,094

25 April 2014

694,880

1.2507

869,086

84,659,995

186,044,974

23 July 2014

883,707

1.3512

1,194,065
4,729,158

85,543,702

186,928,681

165

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201418.  

 IN VES T MEN TS IN AND  BA LA NCES  WITH A SSOC IATE S A ND  E QU ITY – AC C OU NTE D EN TITIES 
(CONT’D )

(c)  Frasers Commercial Trust (“FCOT”) (cont’d)

The payment of such management fees in the form of Units is provided for in the Trust Deed constituting FCOT 
dated 12 September 2005. The Issue Price is the volume weighted average price of the Units traded on the 
Singapore Exchange Securities Trading Limited for the last ten business days of the Relevant Period.

With  the  above  payments  of  management  fees  by  way  of  Units  in  FCOT,  the  Group  and  FCAMC  hold  an 
aggregate  of  186,928,681  and  85,543,702  Units  in  FCOT,  representing  27.6%  and  12.6%  of  the  total  issued 
FCOT Units, respectively.

(d)  Frasers Hospitality Trust (“FHT”)

In June 2014, FCL Investments Pte. Ltd. (“FCLI”), a wholly-owned subsidiary of the Company, was issued the 
initial stapled security in FHT.

On 14 July 2014, the listing date of FHT, FCLI was issued 262,377,999 stapled securities C, representing 22.0% 
of the total number of stapled securities in issue, amounting to $230,893,000.

(e)  The summarised financial information of the associates, not adjusted for the proportion of ownership 

interest held by the Group, is as follows:

Assets and Liabilities
Total assets
Total liabilities

Results
Revenue
Profit for the year

Group

2014
$'000

2013
$'000

8,693,261
4,396,132

5,439,278
2,390,513

401,608
189,900

428,291
482,942

(f) 

Subsidiaries’ Investments in Equity – Accounted Entities

(i) 

The  Group’s  share  of  the  consolidated  assets  and  liabilities  of  the  equity  –  accounted  entities  is  as 
follows:

Group

2014
$'000

2013
$'000

250,703
(138,622)

–
–

Assets and Liabilities
Total assets
Total liabilities

166

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
18.  

 IN VES T MEN TS IN AND  BA LA NCES  WITH A SSOC IATE S A ND  E QU ITY – AC C OU NTE D EN TITIES 
(CONT’D )

(f) 

Subsidiaries’ Investments in Equity – Accounted Entities (cont’d)

(ii) 

The  Group’s  share  of  the  consolidated  results  of  the  equity  –  accounted  entities  for  the  year  is  as 
follows:

Results
Revenue
Profit after taxation

19.  FI NA NCIA L ASSETS

Available-for-sale financial assets:
Unquoted
Equity investments, at cost
Allowance for impairment

Quoted
Equity investments
Allowance for impairment

Group

2013
$'000

–
–

2014
$'000

2,659
803

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

3,303
(1,155)
2,148

3,303
(1,155)
2,148

3,303
(1,155)
2,148

3,303
(1,155)
2,148

24
(8)
16

24
(8)
16

–
–
–

–
–
–

Total available-for-sale financial assets

2,164

2,164

2,148

2,148

The unquoted equity investments are measured at cost less impairment losses as there are no active markets 
for  these  investments  and  other  methods  of  determining  fair  value  do  not  result  in  a  reliable  estimate  
(Note 37(e)).

167

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201420(a).  INTANGIBLE ASSETS

At Cost
At 1 October 2012
Additions

30 September 2013 and
   1 October 2013
Additions
Acquisition of subsidiaries
Currency re-alignment
At 30 September 2014

Accumulated Amortisation
At 1 October 2012
Amortisation

At 30 September 2013 and
   1 October 2013
Amortisation
At 30 September 2014

Net Book Value
At 30 September 2014
At 30 September 2013

Management Contracts

Management Management
Contracts
(Finite

Contracts
(Indefinite
Useful Life) Useful Life) Goodwill
$'000

$'000

$'000

Brand
$'000

Others
$'000

Total
$'000

62,601
–

62,601
–
–
–
62,601

–
–

–
–
–

4,648
–

4,648
–
–
–
4,648

2,450
490

2,940
490
3,430

–
–

–
–

–
–
431,879
(8,629)
423,250

–
–
23,569
(471)
23,098

–
–

–
–
–

–
–

–
–
–

43
142

185
162
–
–
347

8
8

16
48
64

67,292
142

67,434
162
455,448
(9,100)
513,944

2,458
498

2,956
538
3,494

62,601
62,601

1,218
1,708

423,250
–

23,098
–

283
169

510,450
64,478

Management contracts relate to fair values of management contracts held by certain acquired subsidiaries 
prior to the acquisition of the subsidiaries by the Group. 

Management  contracts  with  a  cost  of  $62,601,000  (2013:  $62,601,000)  are  assessed  to  have  an  indefinite 
useful life and not amortised. This is the value ascribed to management contracts entered into between a 
subsidiary and an associate. Management is of the view that these intangible assets have an indefinite useful 
life as the contracts are contracts which go into perpetuity, and will only be terminated upon the removal of 
the subsidiary as the manager, when Frasers Commercial Trust is dissolved. 

The remaining useful life of management contracts with finite useful life is 1 (2013: 2) year.

The recoverable amount of the management contracts has been determined based on value in use calculations 
using a projection of the management fee income covering a 5-year period. The pre-tax discount applied to 
the projections is 10% (2013: 10%) and the forecast growth rate used beyond the 5-year period is 2% (2013: 
2%). Based on the recoverable amount, no impairment is necessary.

Amortisation charge of $538,000 (2013: $498,000) is included in administrative costs in the profit statement.

168

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201420(a).  INTANGIBLE ASSETS (CONT’D)

Goodwill

As disclosed in Note 16(b), goodwill is provisionally recorded on the acquisition of Australand arising from 
excess purchase consideration paid over the fair value of its identifiable net assets.

Brand

As disclosed in Note 16(b), brand, arising from the acquisition of Australand, has been provisionally valued at 
$23,098,000 as at 30 September 2014 based on an independent professional valuation. No amortisation has 
been charged for the year.

20(b).  OTHER LONG-TERM ASSETS

For  finance  leases  where  the  minimum  lease  payments  have  been  fully  received  by  the  Group,  the  other 
long-term  assets  represents  the  unguaranteed  residual  value  in  relation  to  the  Group’s  freehold  interest 
retained in certain properties after the expiry of the respective leases. In the current year, finance income is 
recognised based on average long-term inflationary rate in Singapore and the interest accretion recognised 
in the profit statement for the year amounted to $400,000 (2013: $800,000).

21.  PR EPAYME NTS

Non-current
   – Prepayments

Current
   – Prepaid land and development costs
   – Other prepayments

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

10,141

–

480,244
31,292
521,677

398,033
11,901
409,934

–

–
–
–

–

–
–
–

Prepaid land and development costs relate to tender deposits and stamp duties paid in respect of tender of 
two land parcels at:

(1) 

Yishun  Avenue  2  /  Yishun  Central  1  (Lot  3685T  MK19)  for  a  mixed  commercial  and  residential 
development integrated with a bus interchange and a community club. Vacant possession of the land 
parcel is expected to take place at the end of December 2014.

Upon obtaining vacant possession of the land parcel from the Housing and Development Board, the 
prepayments will be reclassified to development properties held for sale and investment properties 
under construction according to their intended uses.

(2) 

Sembawang Avenue for a residential development. Subsequent to the year end, the land acquisition 
was completed in October 2014 and an amount of $59,960,000 has been reclassified to development 
properties held for sale.

169

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
22.   TR ADE AND OTH ER REC E IVABL ES

Other receivables (non-current)
Amounts due from subsidiaries
Loans to associates
Loans to equity – accounted entities
Loan to a non-controlling interest
Sundry debtors

Trade receivables (current)
Trade receivables
Sales proceeds and progress billing receivables

Other receivables (current)
Tax recoverable
Accrued interest income
Staff loans and advances
Sundry debtors
Other deposits
Amount due from holding company
Amounts due from subsidiaries
Loans to associates
Loans to equity – accounted entities
Amounts due from related companies
Amounts due from a related party
Rental deposits paid to an associate

Note

16
18
18

16
18
18

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

–
88,833
17,917
96,242
42,573
245,565

75,390
549,939
625,329

2,056
5,476
791
63,727
7,580
–
–
18,227
10,012
2,609
911
14,819
126,208

–
77,675
–
90,429
–
168,104

34,077
187,812
221,889

2,665
3,393
896
36,499
5,438
16,551
–
8,071
–
7,361
–
–
80,874

2,522,213
–
–
–
–
2,522,213

1,710,382
–
–
–
–
1,710,382

–
–
–

–
–
–
5,298
12
–
706,919
8,313
–
1,084
–
–
721,626

2
–
2

–
–
–
1
–
–
562,094
–
–
–
–
–
562,095

Total trade and other receivables (current)

751,537

302,763

721,626

562,097

Total trade and other receivables
   (current and non-current)

Trade Receivables

997,102

470,867

3,243,839

2,272,479

Trade receivables comprise mainly rental receivable and management fee receivable, are non-interest bearing 
and are recognised at their original invoiced amounts which represent their fair values on initial recognition.

Included  in  trade  receivables  are  management  fee  receivable  from  associates  amounting  to  $13,544,000 
(2013: $738,000).

170

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201422.   TR ADE AND OTH ER REC E IVABL ES  (CO NT’D )

Sales Proceeds and Progress Billing Receivables

Sales proceeds receivable relate to the balance of sales proceeds from completed properties held for sale 
which will be received upon issue of notice of vacant possession, certificate of statutory completion, expiry of 
defect liability period and/ or title subdivision.

Progress billing receivables relate to the outstanding balance of progress billings which are due within 14 
days after the purchasers receive the notices to make payments.

Sundry Debtors

Included in sundry debtors are $9,762,000 and $42,129,000 (2013: Nil and Nil), being current and non-current 
expected cash flows associated with receivables from joint development agreements. The timing of expected 
receipts of these cash flows were based on cash flow forecast carried out in conjunction with detailed reviews 
of the project feasibility studies.

Related Companies Balances

Amounts due from holding, related companies and related party are non-trade related, unsecured, interest 
free and repayable on demand in cash.

Loan to a Non-controlling Interest

Loan to a non-controlling interest (“NCI”) relates to the NCI’s share of shareholders’ loan contributions to 
a subsidiary, Frasers (Australia) Pte. Ltd. (“Frasers Australia”) paid on behalf by FCL Clover Pte. Ltd. (“FCL 
Clover”), another subsidiary of the Company. The amount is repayable in cash and bears interest at a fixed 
rate of 8% (2013: 8%) per annum.

The loan to a NCI shall be repaid out of:

(i) 

all repayment of shareholders loans and interest accrued thereon made by Frasers Australia to the 
extent of the NCI’s share thereof;

(ii) 

all distributions made by Frasers Australia to the extent of the NCI’s share thereof;

(iii) 

all dividends declared or made by Frasers Australia to the extent of the NCI’s share thereof derived 
from Frasers Broadway Pty Limited (“Frasers Broadway”) and Frasers Queens Pty Limited (“Frasers 
Queens”) (subsidiary and associate of Frasers Australia respectively); and

(iv) 

half of all dividends declared or made by Frasers Australia to the extent of the NCI’s share thereof 
derived from subsidiaries of Frasers Australia other than Frasers Broadway and Frasers Queens.

The amount has no fixed date of repayment.

The amount is secured:

(i) 

by way of first fixed charge to FCL Clover all the NCI’s right, title and interest in and to the shares that 
it may from time to time hold in the capital of Frasers Australia and all its rights attaching or relating 
thereto; and

(ii) 

assignment by the NCI all its rights, title and interest in and to all moneys payable to the NCI by Frasers 
Australia in respect of loans made by the NCI to Frasers Australia.

171

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201422.   TR ADE AND OTH ER REC E IVABL ES  (CO NT’D )

There is no concentration of credit risk with respect to the trade receivables of the Group as they consist of a 
large number of customers that are geographically dispersed. The Group does not have any significant credit 
risk exposure to a single customer or group of customers. The Group generally holds collateral in the form of 
bank deposits, bank guarantees or mortgages over assets until completion.

The credit risk associated with receivables from equity – accounted entities is monitored through management’s 
review of project feasibilities and the Group’s ongoing involvement in the operations of these entities.

(a)  Credit risk by business segments

The maximum exposure to credit risk for trade receivables and sales proceeds receivable at the balance sheet 
date by business segment is as follows:

Investment properties
Development properties
Hospitality
Australand
Corporate & others

2014
$'000

1,445
542,709
30,031
22,993
14,607
611,785

Group

2013
$'000

1,870
190,508
15,249
–
14,262
221,889

Company

2014
$'000

2013
$'000

–
–
–
–
–
–

–
–
–
–
2
2

(b)  Trade receivables that are past due but not impaired 

The Group had trade receivables amounting to $20,558,000 (2013: $15,758,000) that are past due at balance 
sheet date but not impaired. These receivables are unsecured and the aging analysis at the balance sheet 
date is as follows:

Group

2014
$'000

2013
$'000

9,026
2,131
348
9,053
20,558

12,385
1,203
1,273
897
15,758

Trade receivables past due:
1 to 30 days
31 to 60 days
61 to 90 days
More than 90 days

172

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
22.   TR ADE AND OTH ER REC E IVABL ES  (CO NT’D )

(c)  Trade receivables that are impaired 

The Group’s trade receivables that are impaired at the balance sheet date and the movements of the allowance 
account used to record the impairment are as follows:

Trade receivables – nominal amounts
Allowance for impairment

Movements in allowance account:
At 1 October
Charge for the year
Write-back of allowance
Written off
Exchange differences
At 30 September

Group

Collectively Impaired
2013
$'000

2014
$'000

Individually Impaired
2013
$'000

2014
$'000

760
(9)
751

–
10
(5)
(4)
8
9

–
–
–

–
–
–
–
–
–

1,786
(1,786)
–

2,816
1,083
(1,932)
(146)
(35)
1,786

2,816
(2,816)
–

2,405
2,556
(2,041)
(54)
(50)
2,816

Trade and other receivables that are individually determined to be impaired at the balance sheet date relate 
to debtors that are in significant financial difficulties and have defaulted on payments. These receivables are 
not secured by any collateral or credit enhancements.

Based  on  the  Group’s  historical  experience  in  the  collection  of  receivables,  management  believes  that  no 
additional credit risk beyond that provided for is inherent in the Group’s trade and other receivables.

23.   DEFER RED TAX  ASS ET S  AND LIAB ILI TIES

(a)  Deferred Tax Assets

Group

Balance Sheet

2014
$'000

2013
$'000

Profit Statement
2013
$'000

2014
$'000

Unabsorbed losses and capital allowances
Provisions, expenses and income taken  

in a different period

Arising from acquisition of a subsidiary
   group due to carried forward losses

161

232

6,912

2,705

104,910
111,983

–
2,937

–

–

–
–

(115)

(46)

–
(161)

173

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201423.   DEFERR ED TAX  A SS ET S  AND LIABIL ITIE S ( CO NT’D )

(b)  Deferred Tax Liabilities

Group

Balance Sheet

2014
$'000

2013
$'000

Profit Statement
2013
$'000

2014
$'000

18,531
46,875

97,153
306

13,803
35,493

71,757
(1,084)

37,513
200,378

–
119,969

3,949
11,648

74,367
(98)

–
89,866

(356)
(19,838)

(6,121)
(26,315)
174,063

(121)
(1,950)

(116)
(18,100)

30
(2,041)
117,928

(43)
(18,259)
71,607

770
(561)

39,342
(1,587)

–
37,964

3
–

3
6
37,970

Group

2014
$'000

2013
$'000

4,780,210
(93,725)
4,686,485
385,175
5,071,660
(826,238)
4,245,422

4,515,741
(51,021)
4,464,720
469,864
4,934,584
(1,035,875)
3,898,709

835,371
(1,298)
834,073
5,079,495

861,079
(22,735)
838,344
4,737,053

Deferred tax liabilities at the end of the financial year 

related to the following:

Deferred tax liabilities
Differences in depreciation
Tax effect on revaluation surplus
Provisions, expenses and income
   taken in a different period
Others
Arising from acquisition of a subsidiary group due to 

fair value uplift allocated to assets in the PPA

Gross deferred tax liabilities

Less:
Deferred tax assets
Employee benefits
Unabsorbed losses and capital allowances
Provisions, expenses and income
   taken in a different period
Gross deferred tax assets
Net deferred tax liabilities

24.  PR OPERTIES  H E LD  FO R S AL E  

Development properties held for sale
Properties in the course of development, at cost
Write down to net realisable value

Development profit

Progress payments received

Completed properties held for sale
Completed units, at cost
Write down to net realisable value

Total properties held for sale

174

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201424.   PR OPERTIES  HE LD FOR  SALE  ( C O NT’D)  

(a) 

During the year, net interest expense of $50,825,000 (2013: $69,908,000) arising from borrowings obtained 
specifically for the projects were capitalised as cost of development properties held for sale. 

The borrowing cost of loans used to finance the projects have been capitalised at interest rates of between 
1.1% and 5.7% (2013: 1.0% and 7.3%) per annum. 

(b) 

The following table provides information about agreements that are in progress at the reporting date whose 
revenue are recognised on a percentage of completion basis.

Aggregate costs incurred and recognised to date
Less: Progress billings

Group

2014
$'000

2013
$'000

1,609,112
(826,238)
782,874

2,632,851
(1,035,875)
1,596,976

(c) 

(d) 

Included  in  development  properties  held  for  sale  are  projects  of  approximately  $567,320,000  (2013: 
$926,395,000) which are expected to be completed within the next twelve months. 

Included in development properties held for sale are the following significant transactions between the Group 
and related parties which took place during the year at terms agreed between the parties:

Interest expense
  –  Paid to related companies
   –  Paid to related parties

Development costs
   –  Paid to related parties

Project management fees
   –  Paid to related parties

Group

2014
$'000

2013
$'000

6,618
9,358

17,205
4,422

70,500

91,496

205

1,581

(e) 

Certain subsidiaries and joint ventures have granted fixed and floating charges over their properties held for 
sale totalling $1,709,912,000 (2013: $1,897,151,000) to banks as securities for credit facilities.

175

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
25.   DERIVAT IVE  F INANC IAL  INS TRUM ENTS

Assets
Cross currency interest rate swaps
Interest rate swaps
Foreign currency forward contracts

Comprise:
  –  Current
  –  Non-current

Liabilities
Cross currency interest rate swaps
Interest rate swaps
Foreign currency forward contracts

Comprise:
  –  Current
  –  Non-current

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

12,915
2,080
16,708
31,703

29,623
2,080
31,703

–
8,882
6,455
15,337

7,358
7,979
15,337

–
–
1,478
1,478

1,478
–
1,478

660
4,663
968
6,291

3,232
3,059
6,291

–
–
254
254

254
–
254

–
1,036
5,289
6,325

6,098
227
6,325

–
–
1,478
1,478

1,478
–
1,478

–
2,861
–
2,861

2,163
698
2,861

Cross Currency Interest Rate Swaps (“CCIRS”) 

In September 2014, US$130 million of guaranteed senior notes of a subsidiary were repaid and the associated 
US$140  million  cross  currency  swap  (notional  principal)  was  terminated  accordingly.  As  at  30  September 
2014, the Group had on issue US$40 million of guaranteed senior notes through the US Private Placement 
debt market (“USPP”). It is the Group’s policy to protect debt sourced overseas from exposure to volatility in 
exchange rates.

The Group had entered into a US$30 million cross currency swap contracts under which it is obliged to pay 
interest at variable rates in Australian Dollars (AUD) and to pay interest at fixed rates in United States Dollars 
(USD).

The USD components of the cross currency interest rate swaps are structured to provide USD necessary to 
pay the semi annual coupons on the USD Senior Notes to maturity. The settlement dates coincide with the 
dates on which interest is payable on the underlying debt. The AUD components of the cross currency, interest 
rate swaps are paid on a floating rate basis every 90 days.

The  fair  value  of  the  cross  currency  interest  rate  swap  as  at  30  September  2014  was  a  current  asset  of 
$12,915,000 (2013: current liability of $660,000).

In October 2014, the remaining USPP senior notes were repaid and associated CCIRS was terminated.

176

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201425.   DERIVAT IVE  F INANC IAL  INS TRUM ENTS  ( CO NT’D)

The Group has cross currency interest rate swap arrangements in place for the following loan amounts:

Notional amounts
Within one year

Interest Rate Swaps

Group

2014
$'000

2013
$'000

87,551

50,000

Derivative  financial  instruments  are  used  by  the  Group  to  hedge  exposure  to  interest  rate  risk  associated 
with movements in interest rates which impact on the borrowings of the Group and also to hedge exposure to 
exchange rate risk on foreign currency borrowings.

The Company and the Group have interest rate swap arrangements in place for the following loan amounts:

Notional amounts
Within one year
Between one to three years
After three years

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

163,386
1,130,361
1,055,080
2,348,827

190,797
236,587
–
427,384

43,890
81,510
–
125,400

82,537
44,443
–
126,980

At 30 September 2014, the fixed interest rates of the outstanding interest rate swap contracts range between 
0.5% to 4.0% (2013: between 0.5% to 4.0%) per annum.

Foreign Currency Forward Contracts 

The carrying amounts of the foreign currency forward contracts are accounted for at fair value through profit 
or loss.

The Company and the Group have foreign currency forward contracts arrangements in place for the following 
amounts:

Notional amounts
Within one year

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

807,238

196,027

205,166

146,027

177

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
26.   CASH  A ND  CA SH  EQUI VALENT S

Fixed deposits
Cash at bank and in hand
Amounts held under  
  "Project Account Rules – 1997 Ed”
Fixed deposits
Cash at banks

Cash and cash equivalents

Group

2014
$'000

2013
$'000

245,103
495,800

100,322
206,105

126,335
16,366
142,701
883,604

181,444
18,913
200,357
506,784

Company

2014
$'000

–
86,537

–
–
–
86,537

2013
$'000

12,585
15,841

–
–
–
28,426

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made 
in varying periods of between one day and three months depending on the immediate cash requirements of 
the Group, and earn interest at the respective short-term deposit rates.

The withdrawals from amounts held under “Project Account Rules – 1997 Ed” are restricted to payments for 
development expenditure incurred on properties developed for sale.

For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the following 
at the balance sheet date:

Fixed deposits and cash at banks and in hand
Bank overdrafts
Effect of exchange rate change on opening cash
Cash and cash equivalents in the consolidated cash flow statement

Note

28

Group

2014
$'000

2013
$'000

883,604
(5,440)
–
878,164

506,784
(1,037)
(3,138)
502,609

178

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201427.   TR ADE AND OTH ER PAYABL ES

Group

Company

Note

2014
$'000

2013
$'000

2014
$'000

2013
$'000

Trade payables

469,878

344,519

795

61

Other payables (current)
Amounts due to non-controlling 
   interests
Interest payable
Accrued operating expenses and
   sundry creditors
Land vendor liabilities
Provision for bank profit share
Rental deposits
Deposits
Amounts due to subsidiaries
Amounts due to holding company
Amounts due to associates
Loans from joint ventures
Amounts due to related companies
Progress billings received

145,228
16,872

159,082
5,015

358,587
20,789
–
36,400
35,302
–
–
1,877
8
14,695
520,756
1,150,514

149,790
–
14,036
41,314
25,681
–
7,427
–
–
675,665
302,629
1,380,639

–
191

19,511
–
–
–
–
13,127
–
–
98,918
–
–
131,747

–
206

2,996
–
–
–
–
212,821
–
–
50,568
272,124
–
538,715

16

18

Total trade and other payables (current)

1,620,392

1,725,158

132,542

538,776

Other payables (non-current)
Sundry creditors
Land vendor liabilities
Amounts due to subsidiaries
Loan from an associate
Amounts due to related companies

Total trade and other payables  
(current and non-current)

16
18

28,466
126,806
–
40,912
–
196,184

3,169
–
–
–
1,197,275
1,200,444

–
–
634,291
–
–
634,291

–
–
725,478
–
–
725,478

1,816,576

2,925,602

766,833

1,264,254

179

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201427.   TR ADE AND OTH ER PAYABL ES  (C ONT’D )

Trade Payables

Trade payables are non-interest bearing and are generally settled on 60 day terms. Included in trade payables 
is an amount of rent payable to an associate of $4,135,000 (2013: Nil).

Amounts due to Non-controlling Interests

Amounts due to non-controlling interests are non-trade in nature, unsecured, repayable in cash on demand 
and interest free except for amounts of $17,692,000 (2013: $17,372,000) which bear interest at 2.3% (2013: 
2.0%) per annum.

Accrued Operating Expenses and Sundry Creditors

Accrued  operating  expenses  and  sundry  creditors  include  provision  for  transaction  cost  and  outstanding 
consideration for the acquisition of a subsidiary by the Group, and the Company of $132,436 (2013: Nil) and 
$12,315 (2013: Nil), respectively.

Related Companies Balances

Amounts due to holding and related companies are non-trade related, unsecured and repayable in cash. The 
current amounts are repayable upon demand. 

Maturity of non-current amounts due to related companies is as follows:

Between 1 and 2 years
Between 3 and 5 years

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

–
–
–

641,845
555,430
1,197,275

–
–
–

–
–
–

The amounts are non-interest bearing except for the following:

Interest bearing

–

1,847,259

–

–

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

180

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
27.   TR ADE AND OTH ER PAYABL ES  (C ONT’D )

F&N Treasury Pte. Ltd. (“F&NT”), a related company of the Group, had, from time to time, extended loans 
(“F&NT  Loans”)  to  the  Group  for  various  purposes.  These  loans  were  interest  bearing  and  were  included 
in Related Companies balances as at 30 September 2013. Immediately prior to the Company’s listing on 9 
January 2014, the Company repaid the F&NT Loans by transferring the outstanding loans to FCL Treasury Pte. 
Ltd., a wholly-owned subsidiary of the Company, for a consideration of approximately $1.678 billion which was 
based on the estimated fair value of the F&NT Loans based on prevailing market interest rates. A part of the 
consideration of the F&NT Loans of $41,776,000 (Note 10) pertains to premium charged on the redemption of 
these Loans and this sum has been taken to the profit statement as a write off of Part Consideration of the 
Loans, which is reflected under the “Exceptional Items” line. This one-off cost was the difference between the 
estimated fair value of the F&NT Loans based on prevailing market interest rates at the time of redemption, 
and the carrying value of these loans.

Land Vendor Liabilities

When a subsidiary enters into unconditional contracts with land vendors to purchase properties for future 
development that contain deferred payment terms, these liabilities are disclosed at their present value.

The  amount  owing  to  some  land  vendors  of  $111,459,000  (2013:  Nil)  is  secured  over  the  properties  being 
purchased  until  the  balance  of  the  purchase  monies  has  been  paid  or  settlement  of  the  acquisition  has 
occurred.

Provision for Bank Profit Share

This provision was made in connection with the bank debt restructuring of Frasers Property UK, a subsidiary 
of the Group, during the year and comprises:

– 
– 

a 1% dividend known as “BEAD” as described above; and
a Deferred Restructuring Fees (“DRF”) pursuant to a refinanced facility, the Senior facilities (“SF”) with 
the bank, which is equal to 19% of any future profits arising on certain development properties held for 
sale in the United Kingdom.

The “BEAD” and “DRF” payouts, collectively known as the “Bank Profit Share”, are payable on the earlier of 
these three events:

– 
– 
– 

upon repayment of the SF; or
upon the maturity of the SF; or
upon the sale of the secured development properties in UK. 

During  the  current  year,  this  bank  profit  share  was  subsequently  settled  in  October  2013  upon  the  full 
repayment of the SF. An over-provision of $3,114,000 (Note 10) was written back to the profit statement, which 
is reflected under the “Exceptional Items” line.

181

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
28.   LOANS  AND BO RROW INGS

Weighted
Average
Effective
Interest Rate
2014
2013
%
%

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

3.2
1.2

2.5
–

1,072,231
5,440

107,260
1,037

3.1

4.0

416,096
1,493,767

520,838
629,135

2.9
3.7

5.4
3.7

2,927,224
125,000

34,751
125,000

2.2

2.4

3,070,384
6,122,608
7,616,375

1,015,622
1,175,373
1,804,508

–
–

–
–

–
–

–
–
–

–
–

–
–

–
–

–
–
–

Repayable within one year:
Unsecured
Bank loans
Bank overdrafts

Secured
Bank loans

Repayable after one year:
Unsecured
Bank loans
Medium Term Notes

Secured
Bank loans

Total loans and borrowings

(a) 

The secured bank loans, overdrafts and term loans are secured by certain subsidiaries and joint ventures by 
way of fixed and floating charges over certain assets and mortgages on freehold and leasehold land under 
development as disclosed in Notes 14 and 24.

(b)  Maturity of non-current loans and borrowings is as follows:

Group

Company

2014
$'000

2013
$'000

2014
$'000

2013
$'000

1,228,551
4,816,805
77,252
6,122,608

490,012
549,090
136,271
1,175,373

–
–
–
–

–
–
–
–

Between 1 and 2 years
Between 3 and 5 years
After 5 years
At 30 September

182

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201428.   LOANS  AND BO RROW INGS  ( C ON T ’D )

(c) 

(d) 

As at 30 September 2014, the Company and Group had interest rate swaps in place, which have the economic 
effect of converting borrowings from fixed rates to variable rates or vice versa. The terms of these interest 
rate swaps is discussed in Note 25, and the fair values are disclosed in Note 37. 

FCL Treasury Pte. Ltd. (“FCLT”), a wholly-owned subsidiary of the Company, established a S$1,000,000,000 
Multicurrency  Medium  Term  Note  Programme  (the  “Programme”),  to  be  unconditionally  and  irrevocably 
guaranteed by the Company on 21 March 2012. 

The Programme has been updated to:

(i) 

allow FCLT to issue, in addition to notes (the “Notes”) in bearer form, (i) Notes in registered form and 
(ii) perpetual securities in registered and/or bearer form (the “Perpetual Securities” and, together with 
the Notes, the “Securities”) under the Programme; and

(ii) 

increase  the  maximum  aggregate  principal  amount  of  Securities  that  may  be  issued  under  the 
Programme from S$1,000,000,000 to S$3,000,000,000. 

In connection with the foregoing, the Programme has been renamed as the “S$3,000,000,000 Multicurrency 
Debt Issuance Programme”.

29.  SHARE CAPITAL

Issued and fully paid:
Ordinary Shares
At 1 October
Issue of shares
At 30 September

Redeemable Preference Shares ("RPS")
At 1 October
Class B RPS
Redeemed during the year
At 30 September
Total share capital

(a)  Ordinary Shares

Group and Company

2014

2013

No. of Shares

$'000 No. of Shares

$'000

753,291,782
2,136,520,790
2,889,812,572

753,977
1,000,000
1,753,977

753,291,782
–
753,291,782

753,977
–
753,977

330,000
(330,000)
–

330,000
(330,000)
–
1,753,977

330,000
–
330,000

330,000
–
330,000
1,083,977

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All 
shares carry one vote per share without restriction.

The ordinary shares have no par value.

183

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201429.   SHARE CAPITAL  (C ON T’D)

(b)  Redeemable Preference Shares

The Class B RPS have no fixed maturity, are redeemable at the option of the Company on a Dividend Date and 
shall rank in priority to the ordinary shares of the Company in the entitlement to receive declared dividends and 
repayment of specified redemption amount upon any liquidation, dissolution or winding-up of the Company. 

Holders of Class B RPS shall be paid dividend at the same rate declared, and on the same date as that for the 
ordinary shares. Save in certain instances set out in the Company’s Articles and the Companies Act, the Class 
B RPS shall not confer on its holders the right to receive notice of or attend or vote at any general meeting of 
the Company. 

Subject  to  the  Companies  Act,  the  Class  B  RPS  shall  be  redeemed  by  the  Company  on  such  date  as  the 
Company and the holders of the Class B RPS may agree, or on liquidation, or winding-up of the Company, 
whichever is earlier.

(c)  Corporate Restructuring

Prior to the listing,

(i) 

(ii) 

Fraser  and  Neave,  Limited  (“F&N”)  subscribed  for  330,000,000  new  shares  for  a  total  subscription 
amount of $330.0 million;

the  Company  redeemed  all  the  redeemable  preference  shares  held  by  F&N  in  the  Company  for  an 
aggregate amount of $330.0 million; and 

(iii) 

F&N subscribed an additional 1,806,520,790 new ordinary shares for a total subscription amount of 
$670.0 million.

As  at  30  September  2014,  the  Company’s  issued  and  paid-up  ordinary  share  capital  was  $1,753,977,000 
comprising 2,889,812,572 ordinary shares.

30.  OTH ER  R ESE RVE S

Foreign currency translation reserve
Hedging reserve
Fair value adjustment reserve
Share-based compensation reserve
Dividend reserve
Other reserves

Group

Company

2014
$'000

(76,406)
2,790
671
12,231
179,168
(2,459)
115,995

2013
$'000

5,640
(382)
203
–
–
(1,736)
3,725

2014
$'000

–
2,736
–
12,200
179,168
–
194,104

2013
$'000

–
911
–
–
–
–
911

184

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
30.   OTH ER  R ESE RVE S ( C ON T ’D)

The movement of other reserves is as follows:

Hedging
Reserve
$'000

Fair Value
Adjustment
Reserve
$'000

Foreign
Currency
Translation
Reserve
$'000

Share-based
Compensation
Reserve
$'000

Dividend
Reserve
$'000

Other
Reserve
$'000

Total
$'000

Group
2014

Opening balance at
  1 October 2013

Other comprehensive 

income

Net fair value change of
   cash flow hedges
Foreign currency 

translation
Share of other 

comprehensive

(382)

203

5,640

3,242

–

–

–

–

(78,903)

   income of associates

(70)

468

(3,143)

3,172

468

(82,046)

–

–

–

–

–

–

(1,736)

3,725

–

–

–

–

–

3,242

– (78,903)

(723)

(3,468)

(723)

(79,129)

Other comprehensive
   income for the year

Contributions by and 

distributions to owners

Employee share-based
   expense
Dividend proposed

Total contributions by and
   distributions to owners

Closing balance at
   30 September 2014

–
–

–

–
–

–

–
–

–

12,231
–

–
179,168

–
12,231
– 179,168

12,231

179,168

– 191,399

2,790

671

(76,406)

12,231

179,168

(2,459) 115,995

185

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
30.   OTH ER  R ESE RVE S ( C ON T ’D)

Hedging
Reserve
$'000

Fair Value
Adjustment
Reserve
$'000

Foreign
Currency
Translation
Reserve
$'000

Other
Reserve
$'000

Total
$'000

Group
2013

Opening balance at 1 October 2012

(6,042)

35,136

29,920

(1,845)

57,169

Other comprehensive income
Net fair value change of cash
   flow hedges
Foreign currency translation
Realisation upon disposal of
  available-for-sale financial assets
Share of other comprehensive
   income of associates
Total other comprehensive
   income for the year

Closing balance at
   30 September 2013

Fair Value Adjustment Reserve

5,278
–

–
–

–
(8,773)

–

(34,900)

–

382

(33)

(15,507)

5,660

(34,933)

(24,280)

–
–

–

109

109

5,278
(8,773)

(34,900)

(15,049)

(53,444)

(382)

203

5,640

(1,736)

3,725

Fair value adjustment reserve represents the cumulative fair value changes, net of tax, of available-for-sale 
financial assets until they are disposed of or impaired.

Foreign Currency Translation Reserve

The foreign currency translation reserve represents exchange differences arising from the translation of the 
financial statements of foreign operations whose functional currencies are different from that of the Group’s 
presentation currency. It is also used to record the effect of hedging net investment in foreign operations and 
translating foreign currency loans which form part of the Group’s net investment in foreign operations.

Hedging Reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging 
instruments related to hedged transactions that have not yet occurred.

186

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
 
 
 
 
 
30.   OTH ER  R ESE RVE S ( C ON T ’D)

Share-based Compensation Reserve

Share-based compensation reserve represents the equity-settled share options granted by a subsidiary. The 
reserve is made up of the Group’s share of the cumulative value of services received from employees of the 
subsidiary recorded over the vesting period commencing from the grant date of equity-settled share options, 
and is reduced by the expiry or exercise of the share options.

Dividend Reserve

Dividend reserve relates to proposed final dividend of 6.20 cents (2013: Nil) per share.

Other Reserves

Included in other reserves are:

(i) 

(ii) 

the statutory reserve which relates to appropriation of funds from the net profit of subsidiaries and 
associate in China and Thailand, respectively, in accordance with the local laws; and

the  Group’s  share  of  its  associates’  costs  directly  attributable  to  the  issuance  of  the  units  of  the 
associates.

31.  SHARE PL ANS

(a) 

On 25 October 2013, F&N, which was then the sole shareholder of the Company, approved the adoption of the 
FCL Restricted Share Plan (“RSP”) and FCL Performance Share Plan (“PSP”).

The RSP and PSP are administered by the Remuneration Committee which comprises the following three 
non-executive directors who do not participate in the Share Plans:

Mr Philip Eng Heng Nee (Chairman)
Mr Charles Mak Ming Ying
Mr Panote Sirivadhanabhakdi

(b) 

Share Grants Under RSP and PSP

(i) 

Plan Description

Under  the  RSP  and  PSP,  the  Company  grants  shares  to  eligible  participants  annually,  referred  to 
herein  as  “RSP  Shares”  and  “PSP  Shares”,  respectively.  The  grant  (“Base  Award”)  represents  the 
right to receive fully paid shares, their equivalent cash value or combinations thereof, free of charge, 
provided that certain prescribed performance conditions are met. The Remuneration Committee that 
administers this scheme has absolute discretion in the granting of shares under the RSP and PSP. 
The vesting of the RSP Base Award and the PSP Base Award are conditional on the achievement of 
pre-determined targets set for a two-year performance period and a three-year performance period 
respectively. The final number of RSP Shares and PSP Shares to be awarded will be determined at the 
end of the performance period (“Final Award”).

187

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
 
 
31.   SHARE PL ANS ( C ON T’ D)

(b) 

Share Grants Under RSP and PSP (cont’d)

(ii) 

Final Award

The  Final  Award  varies  depending  on  the  level  of  achievement  of  the  pre-determined  targets.  An 
achievement factor will be applied to the relevant Base Award to determine the final number of RSP 
Shares and PSP Shares (as the case may be) to be awarded. The achievement factor ranges from 0% 
to 150% for RSP and from 0% to 200% for PSP.

(iii) 

Vesting Condition and Schedule

At the end of the performance period, 50% of the RSP Shares will be released upon vesting and the 
balance will be released equally over the subsequent two years with fulfilment of service requirements.

All PSP Shares will be released to the participants at the end of the three-year performance period 
upon vesting.

(iv) 

Performance Conditions

Pre-determined targets are set by the Remuneration Committee at their absolute discretion for the 
performance conditions to be met over the performance period. For the RSP, the targets set are the 
achievement  of  Attributable  Profit  Before  Fair  Value  Adjustment  and  Exceptional  Items  (APBE)  and 
Return On Capital Employed (ROCE). For the PSP, the pre-set targets are based on Return on Invested 
Capital (ROIC). Total Shareholders’ Return Relative to Straits Times Index and Absolute Shareholders’ 
Return as a multiple of Cost of Equity.

(v) 

Fraser and Neave, Limited Restricted Share Plan and Performance Share Plan (the “Outstanding F&N 
Awards”)

It was disclosed in the Introductory Document dated 28 October 2013 that the Company may on or after 
the Listing Date, grant Replacement FCL Awards pursuant to the RSP and PSP to certain employees 
of our Group in replacement of awards previously granted to them pursuant to the Fraser and Neave, 
Limited  Restricted  Share  Plan  and  the  Fraser  and  Neave,  Limited  Performance  Share  Plan  (the 
“Outstanding F&N Awards”).

(vi) 

Replacement  FCL  Awards  was  granted  on  3  October  2014  to  replace  the  Outstanding  F&N  Awards 
previously granted to FCL Employees pursuant to the Fraser and Neave, Limited Share Plans.

The first grant of RSP and PSP for the Financial Year 2013/14 was also made on 3 October 2014.

2014

2013

RSP

PSP

RSP

PSP

Outstanding F&N Awards as at 30 September 2014

1,844,401

370,246

Replacement FCL Awards
FCL 2014 (Year 1) Awards granted on 3 October 2014

7,100,182
4,052,698
11,152,880

1,200,527
667,839
1,868,366

–

–
–
–

–

–
–
–

(c)

188

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
31.   SHARE PL ANS ( C ON T’ D)

(c) 

(d) 

(e) 

Although FCL 2014 (Year 1) RSP and PSP Awards were made on 3 October 2014, the Awards were taken into 
account for the financial year ended 30 September 2014, and accordingly, the expenses recognised in profit 
statement for the current financial year under the RSP and PSP are $4,334,000 and $925,000 respectively.

Senior management participants are required to hold a minimum number of the shares released to them 
under the RSP and PSP to maintain a beneficial ownership stake in the Company for the duration of their 
employment or tenure with the Company.

On 3 October 2014, the Company granted contingent awards of 4,052,698 shares under FCL RSP and 667,839 
shares under FCL PSP. The estimated fair values of the shares granted under FCL RSP range from $1.515 
to  $1.621.  The  estimated  fair  value  of  the  shares  granted  under  FCL  PSP  is  $1.18.  The  fair  values  of  the 
contingent  awards  are  determined  at  the  grant  date  using  Monte  Carlo  simulation  method  which  involves 
projection of future outcomes using statistical distributions of key random variables including share price and 
volatility of returns. The significant inputs into the model are as follows:

2014

2013

RSP

PSP

RSP

PSP

Date of grant
Prevailing share price at date
   of grant
Expected volatility
  company
FSTREH Index
Correlation with FSTREH Index
Expected term
Risk free interest rate
Expected dividend yield*
Cost of equity

3.10.2014

3.10.2014

$1.695

$1.695

20.94%
NA
NA
1.24 to 3.25 years
0.42% to 0.98%
3.41%
NA

20.94%
14.59%
74.59%
2.25 years
0.65%
3.41%
7.74%

*   The expected dividend yield is based on management’s forecast.

–

–

–
–
–
–
–
–
–

–

–

–
–
–
–
–
–
–

The expected volatilities are based on a peer group of real estate companies and the FSTREH Index price over 
the previous 36 months immediately preceding the grant date. The expected term used in the model is based 
on the grant date and the end of the vesting period.

32.  PERP ETUA L S EC URI TI ES

FCLT, a wholly-owned subsidiary of the Company, issued $600 million in aggregate principal amount of 4.88% 
perpetual capital securities on 24 September 2014.  The securities are recorded at the proceeds received, net 
of direct issue costs.

The securities are perpetual and confer a right to receive distribution payments.  Such distribution is payable 
semi-annually in arrear unless FCLT, at its sole discretion, elect to defer any distribution in accordance with 
the terms and conditions of the securities.  The rate of distribution applicable to the securities is as follows:

(i)         from 24 September 2014 (the “Issue Date”) to the date falling five years from the Issue Date (the “First 
Call  Date”)  but  excluding  the  First  Call  Date,  at  4.88%  per  annum  plus  in  the  event  of  a  Change  in 
Control Event (as defined in the terms and conditions of the securities (the “Conditions”)) and FCLT 
does  not  elect  to  redeem  the  securities  in  accordance  with  the  Conditions,  1.0%  per  annum  (the 
“Change of Control Margin”);

189

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
32.   PERP ETU AL  SE CUR IT IE S ( C ON T’D )

(ii) 

(iii) 

from the First Call Date to, but excluding the date falling 10 years from the Issue Date (the “Step-Up 
Date”), at the prevailing five-year S$ swap offer rate with respect to the First Call Date plus the initial 
spread of 3.046% (the “Initial Spread”) plus the Change of Control Margin (if applicable);

from the Step-Up Date and each date falling every five years after the Step-Up Date (each, a “Reset 
Date”) to, but excluding the immediately following Reset Date, at the prevailing five-year S$ swap offer 
rate plus the Initial Spread and the step-up margin of one per cent plus the Change of Control Margin 
(if applicable).

A principal sum of $250,000,000 and $1,000,000 was subscribed by TCC Prosperity Limited, an entity of the TCC 
Group (being companies or entities in the TCC Group which are controlled by Mr Charoen Sirivadhanabhakdi 
and Khunying Wanna Sirivadhanabhakdi) and Mr Lim Ee Seng, Group Chief Executive Officer respectively.

The securities constitute direct, unconditional, unsecured and subordinated obligations of FCLT and rank pari 
passu and without any preference among themselves.  The securities may be redeemed at the option of FCLT 
on any distribution payment date as specified in the Conditions and otherwise upon the occurrence of certain 
redemptive events as specified in the Conditions.

33.  DI VIDENDS 

Dividends on Ordinary Shares
Interim paid
 2.4 cents (2013: 19.91 cents) per share, tax exempt

Final proposed
 6.20 cents (2013: 1.73) per share, tax exempt

Company

2014
$'000

2013
$'000

69,350

150,000

179,168
248,518

50,000
200,000

The final dividend is proposed by the Directors after the balance sheet date and subject to the approval of 
shareholders at the next annual general meeting of the Company. 

Dividends on Redeemable Preference Shares

No preference dividends were paid during the years.

During the year, the Company paid final proposed dividends of $50,000,000 for last financial year ended 30 
September 2013 and interim dividends of $69,350,000 for current financial year ended 30 September 2014, 
totalling $119,350,000.

190

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201434.   FINANCIAL REPO RTI NG S TANDAR D S (“FRS”) A ND  I NTERPR ETATION S O F FRS  (“ INT  FR S”) 

FRS and INT FRS not yet effective

The Group has not adopted the following standards that have been issued but not yet effective:

Description

Revised FRS 27
Revised FRS 28
Amendments to FRS 36

Amendments to FRS 39

FRS 110
FRS 111
FRS 112
Amendments to FRS 32
Amendments to FRS 110,
FRS 111 and FRS 112
Amendments to FRS 110,
FRS 112 and FRS 27
Amendments to FRS 19
Improvements to FRSs 

(January 2014)

– Amendment to FRS 102
– Amendment to FRS 103
– Amendment to FRS 108
– Amendment to FRS 16
– Amendment to FRS 24
– Amendment to FRS 38
Improvements to FRS 

(February 2014)

– Amendment to FRS 103
– Amendment to FRS 113
– Amendment to FRS 40
FRS 114
Amendments to FRS 16

and FRS 38

Amendments to FRS 16

and FRS 41

Amendments to FRS 111

Separate Financial Statements
Investments in Associates and Joint Ventures
Recoverable Amount Disclosures for Non-Financial  
  Assets
Novation of Derivatives and Continuation of Hedge
   Accounting
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
Offsetting Financial Assets and Financial Liabilities
Transition Guidance

Investment Entities

Effective for 
Annual Period 
Beginning on or 
After

1 January 2014
1 January 2014
1 January 2014

1 January 2014

1 January 2014
1 January 2014
1 January 2014
1 January 2014
1 January 2014

1 January 2014

Defined Benefit Plans : Employee Contributions

1 July 2014

Share Based Payment
Business Combinations
Operating Segments
Property, Plant and Equipment
Related Party Disclosures
Intangible Assets

Business Combinations
Fair Value Measurement
Investment Property
Regulatory Deferral Accounts
Clarification of Acceptable Methods of
   Depreciation and Amortisation
Agriculture Bearer Plants

Accounting for Acquisitions of Interests in
  Joint Operations

1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014

1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016

1 January 2016

1 January 2016

Except for Revised FRS 27, Revised FRS 28, FRS 110, FRS 111 and FRS 112, the Group expects that the adoption 
of the other standards and interpretations above will have no material impact on the financial statements in 
the  period  of  initial  application.  The  nature  of  the  impending  changes  in  accounting  policy  on  adoption  of 
Revised FRS 27, Revised FRS 28, FRS 110, FRS 111 and FRS 112 are described below.

191

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
34.  

 FINANCIAL REPO RTI NG S TANDAR D S (“FRS”) A ND  I NTERPR ETATION S O F FRS  (“ INT  FR S”) 
(CONT’D )

Standards issued but not yet effective

FRS 110 Consolidated Financial Statements and Revised FRS 27 Separate Financial Statements

FRS 110 establishes a single control model that applies to all entities including special purpose entities. The 
changes  introduced  by  FRS  110  will  require  management  to  exercise  significant  judgement  to  determine 
which entities are controlled and therefore are required to be consolidated by the Group, compared with the 
requirements that were in FRS 27. Therefore, FRS 110 may change which entities are consolidated within a 
group. The revised FRS 27 was amended to address accounting for subsidiaries, jointly controlled entities and 
associates in separate financial statements.

In accordance with the transitional provisions of FRS 110, the Group re-assessed the control conclusion for 
its investees. As a consequence, when the Group adopts FRS 110 from 1 October 2014, it would consolidate 
its investments in Frasers Commercial Trust, Frasers Centrepoint Trust and Frasers Hospitality Trust, which 
are currently accounted for as associated companies using the equity method. 

This standard will be applied retrospectively and prior periods in the Group’s 2015 financial statements will be 
restated. While the Group is continuing to evaluate the application of this standard, based on FY2014 financial 
information, the estimated effect of the application of FRS 110 is a decrease in equity attributable to owners 
of the Company of $18.4 million, an increase in non-controlling interests of $2,554.2 million.

FRS 111 Joint Arrangements and Revised FRS 28 Investments in Associates and Joint Ventures

FRS 111 classifies joint arrangements either as joint operations or joint ventures. Joint operation is a joint 
arrangement whereby the parties that have rights to the assets and obligations for the liabilities whereas joint 
venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to 
the net assets of the arrangement.

FRS 111 requires the determination of joint arrangement’s classification to be based on the parties rights 
and obligations under the arrangement, with the existence of a separate legal vehicle no longer being the 
key  factor.  FRS  111  disallows  proportionate  consolidation  and  requires  joint  ventures  to  be  accounted  for 
using the equity method. The revised FRS 28 was amended to describe the application of equity method to 
investments in joint ventures in addition to associates.

The  Group  has  several  investments  in  joint  arrangements.  The  Group  has  re-evaluated  the  rights  and 
obligations  of  the  parties  to  these  joint  arrangements  and  has  determined  that  the  parties  in  these  joint 
arrangements have rights to the net assets of the arrangements. Accordingly, these joint arrangements will 
be classified as joint ventures under FRS 111 and will be accounted for using the equity method. Currently, 
the Group’s joint arrangements are accounted for as joint venture companies under FRS 31 Interest in Joint 
Venture using the proportionate consolidation method. 

This standard will be applied retrospectively and prior periods in the Group’s 2015 financial statements will be 
restated. While the Group is continuing to evaluate the application of this standard, based on FY 2014 financial 
information, the estimated effect of the application of FRS 111 is a decrease in revenue of $708.3 million, a 
decrease in cost of sales of $470.9 million and, a decrease in other expenses of $22.6 million.

FRS 112 Disclosure of Interests in Other Entities

FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other 
entities,  including  joint  arrangements,  associates,  special  purpose  vehicles  and  other  off  balance  sheet 
vehicles. FRS 112 requires an entity to disclose information that helps users of its financial statements to 
evaluate the nature and risks associated with its interests in other entities and the effects of those interests 
on its financial statements. As this is a disclosure standard, it will have no impact to the financial position and 
financial performance of the Group when implemented in 2015.

192

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
35.   SI GNI FICANT R EL AT ED PAR T Y TR AN SACTI ONS

Sale and Purchase of Goods and Services

In addition to those related party information disclosed elsewhere in the financial statements, the following 
significant transactions between the Group and related parties took place during the period at terms agreed 
between the parties: 

Rental
  –  Received from related companies
  –  Paid to an associate

Service charge
  –  Received from related companies

Management fees
  –  Paid to a related company
  –  Paid to a related party
  –  Received from associates

Acquisition fees
  –  Received from an associate

Leasing commission
  –  Received from an associate

Marketing costs
  –  Paid to related parties

Purchases
  –  Paid to related companies

Corporate guarantee fee
  –  Paid to holding company

Interest (income)/expense
  –  Received from related parties
  –  Paid to a related company

Group

2014
$'000

2013
$'000

(1,886)
49,685

(2,211)
22,000

(408)

(541)

12,006
360
(36,639)

12,500
360
(31,000)

3,050

–

(152)

(161)

5,136

11,960

34

–

208

808

(15,586)
19,063

(10,262)
57,439

193

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
36.   FINANCIAL RI SK  M ANAGE MEN T

The Group and the Company are exposed to financial risks arising from its operations and the use of financial 
instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency 
risk.

The Group has risk management policies and guidelines governing all investments, which set out its overall 
business strategies, its tolerance for risk and its general risk management philosophy and has established 
processes  to  monitor  and  control  hedging  transactions  in  a  timely  and  accurate  manner.  All  investment 
opportunities  are  reviewed  regularly  by  the  Executive  Committee  of  the  Board  to  ensure  that  the  Group’s 
policy guidelines are adhered to.

(a)  Credit Risk

At the balance sheet date, the Group’s and the Company’s maximum exposure to credit risk in the event that 
the counterparties fail to perform their obligations is represented by the carrying amount of each class of 
financial assets recognised in the balance sheets, including derivatives with positive fair values.

At 30 September 2014, 100% (2013: 100%) of the Company’s receivables are due from subsidiaries and joint 
ventures. The directors believe that there is no significant credit risk as these companies are of good credit 
standing.

The  Group  has  guidelines  governing  the  monitoring  of  credit  risk.  Contractual  deposits  are  collected  and 
scheduled progress payments are received from the buyers of development properties held for sale when 
due. Titles to development properties held for sale are only transferred upon full settlement. Rental deposits 
are collected from tenants and debts are monitored regularly to minimise risk of non-payment.

Cash and fixed deposits are placed with reputable financial institutions. Information regarding financial assets 
that are either past due or impaired and the aging analysis of trade receivables is disclosed in Note 22.

With respect to derivative financial instruments, credit risk arises from the potential failure of counterparties 
to meet their obligations under the contract or arrangement. The Group’s maximum credit risk exposure for 
foreign currency swap contracts and interest rate swap contracts are limited to the fair value adjustments of 
these contracts. It is the Group’s and the Company’s policy to enter into financial instruments with a diversity 
of credit worthy counterparties. The Group and the Company do not expect to incur material credit losses on 
their financial assets or other financial instruments.

(b)  Liquidity Risk

Liquidity risk is the risk that the Group and Company will encounter difficulty in meeting financial obligations 
due  to  shortage  of  funds.  The  Group  adopts  a  prudent  approach  to  managing  its  liquidity  risk.  The  Group 
always maintains sufficient cash and has available funding through a diverse source of uncommitted credit 
facilities from various banks and a related company. Surplus cash from subsidiaries are transferred to the 
Company in accordance with its group policy for management of liquidity of the companies in the Group. 

194

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201436.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(b)  Liquidity Risk (cont’d)

The table below analyses the maturity profile of the Group’s and Company’s financial assets and liabilities 
(including derivative financial instruments) based on contractual undiscounted cash flow.

1 year
or less
$'000

2014

1 to 5
years
$'000

Over 5
years
$'000

Total
$'000

1 year
or less
$'000

2013

1 to 5
years
$'000

Over 5
years
$'000

Total
$'000

Group

Financial Assets
Trade and other
   receivables
Derivative financial
   instruments
Cash and cash
   equivalents
Total undiscounted
   financial assets

763,193

112,070 161,758 1,037,021

313,954

106,257

94,067

514,278

29,623

2,080

883,604

–

–

–

31,703

1,478

883,604

506,784

–

–

–

–

1,478

506,784

1,676,420

114,150 161,758 1,952,328

822,216

106,257

94,067 1,022,540

170,255

1,072,424

Financial Liabilities
Trade and other
   payables
Derivative financial
   instruments
Loans and
   borrowings
Total undiscounted
   financial liabilities 3,290,812 8,042,882 115,349 11,449,043 2,133,354 2,343,474 147,978 4,624,806

28,466 1,271,145 1,461,043 1,245,096

669,079 1,095,454 144,809 1,909,342

2,211,030 7,864,648

86,883 10,162,561

3,169 2,709,308

15,337

7,979

7,358

2,924

3,232

6,156

–

–

Total net
   undiscounted
   financial 

(liabilities)/

   assets

(1,614,392) (7,928,732) 46,409 (9,496,715) (1,311,138) (2,237,217)

(53,911) (3,602,266)

195

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201436.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(b)  Liquidity Risk (cont’d)

1 year
or less
$'000

2014

1 to 5
years
$'000

Over 5
years
$'000

Total
$'000

1 year
or less
$'000

2013

1 to 5
years
$'000

Over 5
years
$'000

Total
$'000

Company

Financial Assets
Trade and other
   receivables
Amounts due from
   subsidiaries
Cash and cash
   equivalents
Total undiscounted
   financial assets

Financial Liabilities
Trade and other
   payables
Derivative financial
   instruments
Amounts due to 
subsidiaries

14,707

–

–

14,707

3

–

–

3

747,310

92,619 2,429,594 3,269,523

562,094

315,828 1,394,554 2,272,476

86,537

–

–

86,537

28,426

–

–

28,426

848,554

92,619 2,429,594 3,370,767

590,523

315,828 1,394,554 2,300,905

119,415

–

6,098

227

–

–

119,415

3,263

–

6,325

2,163

698

–

–

3,263

2,861

20,377

652,949

1,621

674,947

536,053

725,478

– 1,261,531

Total undiscounted
   financial liabilities 145,890

653,176

1,621

800,687

541,479

726,176

– 1,267,655

Total net
   undiscounted
   financial assets/
   (liabilities)

702,664 (560,557) 2,427,973 2,570,080

49,044

(410,348) 1,394,554 1,033,250

The earliest period in which the financial guarantee contracts amounting to $46,272,000 (2013: $52,383,000) 
could be called is within one year.

196

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201436.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(c) 

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of the Group’s financial instruments will 
fluctuate because of changes in market interest rates. The Group’s exposure to changes in interest rates is in 
respect of debt obligations and deposits with related companies and financial institutions.  

The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts with varying tenors. 
To manage this mix in a cost-efficient manner, the Group enters into interest rate swaps to hedge its interest 
rate exposure for specific underlying debt obligations.

Effective interest rates and repricing analysis

In respect of the interest-earning financial assets and interest-bearing financial liabilities, the following table 
indicates their effective interest rates at balance sheet date and the periods in which they reprice.

Financial  instruments  classified  as  fixed  rates  are  instruments  for  which  interest  rates  are  fixed  until  the 
maturity of the instruments or for which interest rate swaps have been entered into.

Group

Fixed Interest Rate

Effective
Interest 
Rate
%

Floating
Interest 
Rate
$'000

Note

Within
1 Year
$'000

Between
1 to 5 Years
$'000

After
5 Years
$'000

Total
$'000

2014
Financial Assets
Cash and bank deposits
Other receivables
Derivative financial
   instruments

Financial Liabilities
Loans and borrowings
Other payables
Derivative financial
   instruments

2013
Financial Assets
Cash and bank deposits
Other receivables

Financial Liabilities
Loans and borrowings
Other payables
Derivative financial
   instruments

26
22

25

28
27

25

26
22

28
27

25

0.0 to 5.0
6.2 to 8.0

1.0 to 5.8

–
–

371,438
–

14,995
14,995

–
371,438

–
96,242

–
96,242

–
63,617

–
63,617

371,438
159,859

14,995
546,292

1.1 to 7.3
6.2

5,073,134
–

128,604
–

2,364,937
40,912

49,700
–

7,616,375
40,912

0.5 to 4.0

8,882
5,082,016

–
128,604

–
2,405,849

–
49,700

8,882
7,666,169

0.0 to 4.0
6.0 to 8.0

73,090
–
73,090

281,766
8,071
289,837

–
90,429
90,429

–
63,617
63,617

354,856
162,117
516,973

1.0 to 7.3
0.6 to 6.0

1,329,104
302,350

61,300
347,634

289,104
1,197,275

125,000
–

1,804,508
1,847,259

0.5 to 4.0

5,323
1,636,777

–
408,934

–
1,486,379

–
125,000

5,323
3,657,090

197

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
36.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(c) 

Interest Rate Risk (cont’d)

Company

Fixed Interest Rate

Effective
Interest 
Rate
%

Floating
Interest
 Rate
$'000

Note

Within
1 Year
$'000

Between
1 to 5 Years
$'000

After
5 Years
$'000

Total
$'000

2014
Financial Assets
Amounts due from
   subsidiaries

Financial Liabilities
Amounts due to 
  subsidiaries
Derivative financial
   instruments

2013
Financial Assets
Cash and bank deposits
Amounts due from
   subsidiaries

Financial Liabilities
Other payables
Derivative financial
   instruments

16

25

26

16

27

25

16

0.2 to 5.8

2,063,777
2,063,777

5.8

125,425

1.6 to 4.0

1,036
126,461

–
–

–

–
–

0.0 to 7.7

–

12,585

0.2 to 6.7

1,163,465
1,163,465

–
12,585

0.9 to 7.8

145,140

126,980

1.6 to 4.0

2,861
148,001

–
126,980

–
–

–

–
–

–

–
–

–

–
–

–
–

–

–
–

–

–
–

–

–
–

2,063,777
2,063,777

125,425

1,036
126,461

12,585

1,163,465
1,176,050

272,120

2,861
274,981

Sensitivity Analysis for Interest Rate Risk

For  the  variable  rate  financial  assets  and  liabilities,  a  hundred  basis  points  increase/decrease  in  interest 
rate,  with  all  other  variables  held  constant,  would  decrease/increase  the  Group’s  profit  after  tax  and  net 
loss in hedging reserve by approximately $42,056,000 (2013: $12,979,000) and $730,000 (2013: $5,300,000) 
respectively, arising mainly as a result of higher/lower interest expense on net floating borrowing position and 
increase/decrease in the fair value of derivatives held for hedging respectively.

198

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
36.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(d)  Foreign Currency Risk

The purpose of the Company’s and the Group’s foreign currency hedging activities is to protect against the 
volatility  associated  with  investments  in  and  loans  granted  to  foreign  subsidiaries.  The  Company  and  the 
Group  primarily  utilise  foreign  currency  forward  contracts  with  maturities  of  less  than  twelve  months  to 
hedge foreign currency-denominated investments and loans to foreign subsidiaries. Under this programme, 
increases or decreases in the Company’s foreign currency-denominated investments and loans are partially 
offset by gains and losses on the hedging instruments. The Company does not use foreign currency forward 
contracts for trading purposes.

In addition to transactional exposures, the Group is also exposed to foreign exchange movements on its net 
investment in foreign subsidiaries. The Group uses foreign currency borrowings as a natural hedge against 
the activities of the foreign subsidiaries.

The net fair value gain/loss of the foreign currency forward contracts as at 30 September 2014 was $10,253,000 
(2013: $510,000).

The financial assets and liabilities are denominated in the following currencies:

Singapore Australia Chinese Hong Kong Sterling
Pound
$'000

Dollar Renminbi
$'000
$'000

Dollar
$'000

Dollar
$'000

United
States
Dollar
$'000

Others
$'000

Total
$'000

Group

2014
Financial Assets
Financial assets
Trade and other 
receivables
Cash and cash 
equivalents

Derivative financial
   instruments
Total Financial 

2,148

–

–

535,041

411,394

2,661

–

6

16

–

–

2,164

21,063

13,532

13,405

997,102

552,875

216,638

10,260

727

61,450

5,147

36,507

883,604

6,453

24,424

–

–

302

524

–

31,703

Assets

1,096,517

652,456

12,921

733

82,831

19,203

49,912 1,914,573

Financial Liabilities
Trade and other 

payables

965,568

67,576

4,208

67,582

93,419

50,344

47,123 1,295,820

Derivative financial
   instruments
Loans and 

borrowings
Total Financial 
Liabilities

1,753

6,109

4,940,208 2,350,685

–

–

–

34

7,166

275

15,337

– 142,939

162,243

20,300 7,616,375

5,907,529 2,424,370

4,208

67,582 236,392

219,753

67,698 8,927,532

199

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
36.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(d)  Foreign Currency Risk (cont’d)

Singapore Australia Chinese Hong Kong Sterling
Pound
$'000

Dollar Renminbi
$'000
$'000

Dollar
$'000

Dollar
$'000

United
States
Dollar Others
$'000
$'000

Total
$'000

Group

2013
Financial Assets
Financial assets
Trade and other 
receivables
Cash and cash 
equivalents

Derivative financial
   instruments
Total Financial 

2,148

–

–

–

16

–

–

2,164

403,597

26,208

12,254

572

11,465

14,658

2,113

470,867

259,277

74,604

123,278

939

32,944

5,690

10,052

506,784

–

–

–

–

–

1,478

–

1,478

Assets

665,022

100,812

135,532

1,511

44,425

21,826

12,165

981,293

Financial Liabilities
Trade and other 

payables

1,775,806

211,033

102,149

81

318,449

201,299

14,156 2,622,973

Derivative financial
   instruments
Loans and 

borrowings
Total Financial 
Liabilities

1,720

1,710

–

820,586

723,584

46,689

–

–

–

2,861

–

6,291

97,787

107,260

8,602 1,804,508

2,598,112

936,327

148,838

81

416,236

311,420

22,758 4,433,772

200

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201436.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(d)  Foreign Currency Risk (cont’d)

The financial assets and liabilities are denominated in the following currencies:

Singapore Australia Chinese Hong Kong Sterling
Pound
$'000

Dollar Renminbi
$'000
$'000

Dollar
$'000

Dollar
$'000

United
States
Dollar Others
$'000
$'000

Total
$'000

Company

2014
Financial Assets
Financial assets
Trade and other 
receivables
Cash and cash 
equivalents

Derivative financial
   instruments
Total Financial 

2,148

–

2,885,412

53,495

85,835

–

588

254

Assets

2,973,395

54,337

Financial Liabilities
Trade and other 

payables

641,408

Derivative financial
   instruments
Total Financial 
Liabilities

–

641,408

–

–

–

–

–

–

–

–

–

–

–

–

–

54

–

54

–

–

–

–

–

–

2,148

27

248,111

56,794 3,243,839

–

–

60

–

–

–

86,537

254

27

248,171

56,794 3,332,778

–

–

–

125,425

6,325

131,750

–

–

–

766,833

6,325

773,158

201

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
36.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(d)  Foreign Currency Risk (cont’d)

Singapore Australia Chinese Hong Kong Sterling
Pound
$'000

Dollar Renminbi
$'000
$'000

Dollar
$'000

Dollar
$'000

United
States
Dollar Others
$'000
$'000

Total
$'000

Company

2013
Financial Assets
Financial assets
Trade and other 
receivables
Cash and cash 
equivalents

Derivative financial
   instruments
Total Financial 

2,148

–

1,910,020

55,166

22,846

–

–

–

Assets

1,935,014

55,166

Financial Liabilities
Trade and other 

payables

1,092,181

Derivative financial
   instruments
Total Financial 
Liabilities

–

1,092,181

–

–

–

–

–

–

–

–

–

–

–

–

–

54

–

54

–

–

–

–

–

–

–

2,148

250,448

56,845 2,272,479

5,487

39

–

1,478

–

–

28,426

1,478

5,487

251,965

56,845 2,304,531

–

–

–

172,073

– 1,264,254

2,861

–

2,861

174,934

– 1,267,115

The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible change 
in the US$ and A$ exchange rates (against the respective functional currencies of the Group entities), with all 
other variables held constant.

Group

US$/S$

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

US$/RMB

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

A$/S$

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

2014
$'000

2013
$'000

12,575
(12,575)

(11,862)
11,862

(1,787)
1,787

7,859
(7,859)

(1,809)
1,809

1,551
(1,551)

202

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
36.   FINANCIAL RI SK  M ANAGE MEN T   ( CO NT’D)

(d)  Foreign Currency Risk (cont’d)

Company

US$/S$

A$/S$

NZ$/S$

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

– strengthened 10% (2013: 10%)
– weakened 10% (2013: 10%)

37.  FAI R VALU E O F ASSETS  AND  LI AB IL I TI ES 

(a)  Fair Value Hierarchy

2014
$'000

10,188
(10,188)

4,489
(4,489)

4,714
(4,714)

2013
$'000

6,508
(6,508)

4,579
(4,579)

4,718
(4,718)

The Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation 
inputs used as follows:

Level 1 

Level 2  

: 

: 

Level 3  

: 

 Quoted prices (unadjusted) in active markets for identical assets or liabilities.

 Inputs other than quoted prices included within Level 1 that are observable for the asset 
or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

 Inputs for the asset or liability that are not based on observable market data (unobservable 
inputs).

Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the 
same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

203

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(b)  Classifications and Fair Values 

The  following  tables  show  the  carrying  amounts  and  fair  values  of  assets  and  liabilities,  including  their 
levels in the fair  value  hierarchy. It does  not include  fair value information  for short  term trade and other 
receivables, cash and cash equivalents and trade and other payables as their carrying amounts are reasonable 
approximation of fair values. 

Note

Level 1
$'000

Level 2
$'000

Level 3
$'000

Fair Value
Total
$'000

Carrying
Amount
Total
$'000

Group

2014
Assets and Liabilities
   measured at Fair Value:
Financial Assets
Available-for-sale financial assets:
  –  Quoted investments
Derivative financial assets:
  –  Interest rate swaps
  –  Foreign currency forward

  contracts

Non-Financial Assets
Investment properties

Financial Liabilities
Derivative financial liabilities:
   –  Interest rate swaps
   –  Foreign currency forward

  contracts

19

25

25

14

25

25

Liabilities not carried at Fair Value 
   but for which Fair Value are 
   disclosed:
Financial Liabilities
Bank borrowings

28

204

16

–

–

–
16

–

–
–

–

14,995

16,708

–

–

–

16

16

14,995

14,995

16,708

16,708

–
31,703

6,822,331
6,822,331

6,822,331
6,854,050

6,822,331
6,854,050

(8,882)

(6,455)
(15,337)

–

–
–

(8,882)

(8,882)

(6,455)
(15,337)

(6,455)
(15,337)

–

(6,121,733)

–

(6,121,733)

(6,122,608)

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(b)  Classifications and Fair Values (cont’d) 

Note

Level 1
$'000

Level 2
$'000

Level 3
$'000

Fair Value
Total
$'000

Carrying
Amount
Total
$'000

Company

2014
Assets and Liabilities
   measured at Fair Value:
Financial Assets
Derivative financial assets:
  –  Foreign currency forward

  contracts

Non-Financial Asset
Investment property

Financial Liabilities
Derivative financial liabilities:
   –  Interest rate swaps
   –  Foreign currency forward

  contracts

25

14

25

25

(c)  Determination of Fair Value 

–

–
–

–

–
–

254

–
254

(1,036)

(5,289)
(6,325)

–

254

254

1,600
1,600

1,600
1,854

1,600
1,854

–

–
–

(1,036)

(1,036)

(5,289)
(6,325)

(5,289)
(6,325)

The  following  valuation  methods  and  assumptions  are  used  to  estimate  the  fair  values  of  the  following 
significant classes of assets and liabilities:

(i)  Derivatives

Forward  currency  forward  contracts,  cross  currency  interest  rate  swaps  and  interest  rate  swaps 
are  valued  using  valuation  techniques  with  market  observable  inputs.  The  most  frequently  applied 
valuation techniques include forward pricing and swap models, using present valuation calculations. 
The models incorporate various inputs including the credit quality of counterparties, foreign exchange 
spot and forward rates, interest rate and forward rate curves. 

(ii)  Non-Derivative Financial Liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of 
future principal and interest cash flows, discounted using the market rate of interest at the reporting 
date. In respect of the liability component of convertible bonds, the fair value at initial recognition is 
determined using a market interest rate of similar liabilities that do not have a conversion option.

205

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
 
 
 
 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(c)  Determination of Fair Value (cont’d) 

(iii)  Other Financial Assets and Liabilities

The fair value of quoted securities is their quoted bid price at the balance sheet date. The carrying 
amounts of financial assets and liabilities with a maturity of less than one year (including trade and 
other receivables, cash and cash equivalents and trade and other payables) are assumed to approximate 
their fair values because of the short period to maturity. All other financial assets and liabilities are 
discounted to determine their fair values.

Where  discounted  cash  flow  techniques  are  used,  estimated  future  cash  flows  are  based  on 
management’s best estimates and the discount rate is a market-related rate for a similar instrument 
in the balance sheet.

(iv) 

Investment Properties

The  Group’s  investment  property  portfolio  is  mostly  valued  by  external  and  independent  valuation 
companies at least once every two years. The fair values are based on open 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 wherein the parties had each acted 
knowledgeably and without compulsion. The valuers have considered valuation techniques including 
direct  comparison  method,  capitalisation  approach,  discounted  cash  flows  and  residual  method  in 
arriving  at  the  open  market  value  as  at  the  balance  sheet  date.  In  determining  the  fair  value,  the 
valuers  have  used  valuation  techniques  which  involve  certain  estimates.  The  key  assumptions  used 
to determine the fair value of investment properties include market-corroborated capitalisation yield, 
terminal yield and discount rate.

Investment properties under construction (“IPUC”) are stated at fair value which has been determined 
based  on  valuations  performed  at  balance  sheet  date.  Valuations  are  performed  by  accredited 
independent valuer with recognised and relevant professional qualification or internal valuers and with 
recent experience in the location and category of the properties being valued. The valuation is prepared 
on  an  ungeared  basis.  The  fair  value  of  IPUC  is  determined  using  a  combination  of  capitalisation 
approach, discounted cash flow analysis and residual land value method, where appropriate. 

In  arriving  at  their  estimates  of  market  value,  the  valuers  have  used  their  market  knowledge  and 
professional judgement and not only relied on historical transactional comparables.

206

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
 
 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(d)  Level 3 Fair Value Measurements 

(i) 

Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements

The following table shows the valuation techniques used in measuring significant Level 3 fair values, 
as well as the significant unobservable inputs used.

Recurring Fair Value Measurements

Fair Value
as at 
30 September 
2014
$'000

Valuation
Techniques

Key Unobservable Inputs

Inter-relationship
Between Key Unobservable
Inputs and Fair Value
Measurement

Description

Investment Properties

– Commercial
– Singapore

1,896,095

–  Capitalisation – Capitalisation rate:

approach

  3.9% to 5.7%

– Others

50,423

–  Discounted
cashflow
approach

– Discount rate:

  6.0% to 7.8%

– Terminal yield rate:
  3.9% to 6.5%

– Discounted
cashflow
approach

– Discount rate:

  12.0%

– Terminal yield rate:

  10.0%

Investment Properties
  under Construction
– Commercial
– Singapore

1,234,959

– Capitalisation – Capitalisation rate:

approach

  3.8% to 5.3%

– Discounted
cashflow
approach

– Discount rate:

  7.8%

– Residual land 

value
  method

– Terminal yield rate:

  5.5%

– Total gross development
  values: $2,273 million

– Total estimated 

construction cost to

  completion: $500 million

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate and
   terminal yield rate

The estimated fair value
   varies inversely against
   the discount rate and
   terminal yield rate

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate and
   terminal yield rate

The estimated fair value
   would increase with
   higher gross development 
value and decreases with 
higher cost to completion

207

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
  
 
  
  
  
  
  
  
  
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(d)  Level 3 Fair Value Measurements (cont’d)

(i) 

Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)

Recurring Fair Value Measurements (cont’d)

Fair Value
as at 
30 September 
2014
$'000

Valuation
Techniques

Key Unobservable Inputs

Inter-relationship
Between Key Unobservable
Inputs and Fair Value
Measurement

Description

Investment Properties

– Hospitality
– Singapore

210,000

– Capitalisation – Capitalisation rate:

approach

  3.8%

– Discounted
cashflow
approach

– Discount rate:

  6.5%

– Terminal yield rate:

  3.8%

– Australia

94,501

– Capitalisation – Capitalisation rate:

approach

  7.5%

– Discounted
cashflow
approach

– Discount rate:

  9.5%

– Europe

249,863

– Capitalisation – Capitalisation rate:

approach

  7.3%

– Discounted
cashflow
approach

– Market

comparison

   method

– Discount rate:

  9.8%

– Transacted price 
  of comparable
  properties(1)
  $336 psf to $2,335 psf

– China

241,575

– Capitalisation – Capitalisation rate:

approach

  2.4%

– Others

78,475

– Discounted
cashflow
approach

– Discounted
cashflow
approach

– Discount rate:

  5.4%

– Capitalisation rate:

  8.0%

– Discount rate:

  6.8%

– Market

comparison

   method

– Transacted price 
  of comparable
  properties(1)
  $180 psf to $347 psf

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate and
   terminal yield rate

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The estimated fair value
   varies with different
   adjustment factors used

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The estimated fair value
   varies with different
   adjustment factors used

(1)  Adjustments are made for any difference in the location, tenure, size and condition of the specific property.

208

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(d)  Level 3 Fair Value Measurements (cont’d)

(i) 

Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)

Recurring Fair Value Measurements (cont’d)

Description

Investment Properties

– Australand

Investment Properties
   under Construction

– Australand

Fair Value
as at 
30 September 
2014
$'000

Valuation
Techniques

Key Unobservable Inputs

Inter-relationship
Between Key Unobservable
Inputs and Fair Value
Measurement

2,730,598

– Capitalisation – Capitalisation rate:

approach

  6.5% to 10.3%

– Discounted
cashflow
approach

– Discount rate:

  8.4% to 11.0%

35,842

– Capitalisation – Capitalisation rate:

approach

  6.5% to 10.3%

– Discounted
cashflow
approach

– Discount rate:

  8.4% to 11.0%

The estimated fair value
   varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The estimated fair value
  varies inversely against
   the capitalisation rate

The estimated fair value
   varies inversely against
   the discount rate

The fair value of equity securities was estimated based on the fair value of the underlying investment 
property of the investee company. The valuation was based on discounted cash flow approach and its 
significant unobservable inputs were consistent with the information as presented above.

(ii)  Movement in Level 3 Assets Measured at Fair Value

The movements of financial and non-financial assets, investment properties, classified under Level 3 
have been disclosed in Note 14.

(iii)  Valuation Policies and Procedures

The significant non-financial asset of the Group categorised within Level 3 of the fair value hierarchy is 
investment properties. Generally, the fair values of investment properties are determined annually by 
independent professional valuers except for our significant subsidiary, Australand. At Australand, the 
fair values of the investment properties are determined at least once every two years by independent 
professional valuers and investment properties that are not independently valued are carried at fair 
value determined by directors’ valuation. 

Australand’s  investment  properties  division  includes  a  valuation  team  (the  “Australand  Valuation 
Team”)  where  each  member  of  this  team  is  professionally  qualified  and  is  an  accredited  property 
valuer. The Australand Valuation Team performs the underlying valuations that support the directors’ 
valuation.

209

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
  
  
  
  
  
  
 
 
 
 
37.   FAI R VALUE O F  A SSETS  AND LI A BI LI TI E S (CO NT’D)

(d)  Level 3 Fair Value Measurements (cont’d)

(iii)  Valuation Policies and Procedures (cont’d)

The  independent  professional  valuers  and  Australand  Valuation  Team  (the  “Valuers”)  are  experts 
who possess the relevant credentials and knowledge on the subject of property valuation, valuation 
methodologies and FRS 113 fair value measurement guidance to perform the valuation. For valuation 
performed  by  the  Valuers,  the  appropriateness  of  the  valuation  methodologies  and  assumptions 
adopted  are  reviewed  along  with  the  appropriateness  and  reliability  of  the  inputs  (including  those 
developed internally by the Group) used in the valuations.

In selecting the appropriate valuation models and inputs to be adopted for each valuation that uses 
significant  non-observable  inputs,  the  Valuers  are  required  to  recalibrate  the  valuation  models  and 
inputs to actual market transactions (which may include transactions entered into by the Group with 
third  parties  as  appropriate)  that  are  relevant  to  the  valuation  if  such  information  are  reasonably 
available. For valuations that are sensitive to the unobservable inputs used, the Valuers are required, 
to the extent practicable to use a minimum of two valuation approaches to allow for cross-checks.

Significant changes in fair value measurements from period to period are evaluated for reasonableness. 
Key drivers of the changes are identified and assessed for reasonableness against relevant information 
from independent sources, or internal sources if necessary and appropriate.

In  accordance  with  the  Group’s  reporting  policies,  the  valuation  process  and  the  results  of  the 
independent valuations and directors’ valuation are reviewed at least once a year by the Board Executive 
Committee  and  the  Audit  Committee  before  the  results  are  presented  to  the  Board  of  Directors  for 
approval.

(e)  Fair Value of Financial Instruments by Classes that are not Carried at Fair Value and whose Carrying 

Amounts are not Reasonable Approximation of Fair Value

Other Receivables (Non-Current) and Other Payables (Non-Current)

No disclosure of fair value is made for other receivables and other payables as it is not practicable to determine 
their fair values with sufficient reliability since the balances have no fixed terms of repayment. The Group and 
the Company do not anticipate that the carrying amounts recorded at the end of the financial year would be 
significantly different from the values that would eventually be received or settled. 

Available-for-Sale Financial Assets – Unquoted Equity Investments, at Cost

Unquoted equity investments represent ordinary shares that are not quoted on any market and do not have any 
comparable industry peer that is listed. Fair value information has not been disclosed for these investments 
carried at cost less impairment because fair value cannot be measured reliably. The Group does not intend to 
dispose of these investments in the foreseeable future. 

210

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
38.   CLASSIFICAT ION O F  FIN ANC IAL IN STRUM E NTS

Set out below is a comparison by category of carrying amounts of all the Group’s and the Company’s financial 
instruments that are carried in the financial statements.

Loans and
Receivables
$'000

Derivatives
used for
Hedging
$'000

Fair Value
through
Profit or
Loss
$'000

Available-
for-sale
$'000

Liabilities at
Amortised
Cost
$'000

Group

Year ended 30 September 2014
Assets
Financial assets
Trade and other receivables
Derivative financial instruments
Cash and cash equivalents

Liabilities
Trade and other payables
Derivative financial instruments
Loans and borrowings

Year ended 30 September 2013
Assets
Financial assets
Trade and other receivables
Derivative financial instruments
Cash and cash equivalents

Liabilities
Trade and other payables
Derivative financial instruments
Loans and borrowings

–
997,102
–
883,604
1,880,706

–
–
–
–

–
470,867
–
506,784
977,651

–
–
–
–

–
–
–
–
–

–
8,882
–
8,882

–
–
–
–
–

–
4,663
–
4,663

–
–
31,703
–
31,703

–
6,455
–
6,455

–
–
1,478
–
1,478

–
1,628
–
1,628

2,164
–
–
–
2,164

–
–
–
–
–

–
–
–
–

1,816,576
–
7,616,375
9,432,951

2,164
–
–
–
2,164

–
–
–
–
–

–
–
–
–

2,622,973
–
1,804,508
4,427,481

211

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201438.   CLASSIFICAT ION O F  FIN ANC IAL IN STRUM E NTS  (CO NT’D )

Loans and
Receivables
$'000

Derivatives
used for
Hedging
$'000

Fair Value
through
Profit or
Loss
$'000

Available-
for-sale
$'000

Liabilities at
Amortised
Cost
$'000

Company

Year ended 30 September 2014
Assets
Financial assets
Trade and other receivables
Cash and cash equivalents
Derivative financial instruments

Liabilities
Trade and other payables
Derivative financial instruments

Year ended 30 September 2013
Assets
Financial assets
Trade and other receivables
Cash and cash equivalents
Derivative financial instruments

Liabilities
Trade and other payables
Derivative financial instruments

–
3,243,839
86,537
–
3,330,376

–
–
–
–
–

–
–
–

–
1,036
1,036

–
2,272,479
28,426
–
2,300,905

–
–
–
–
–

–
–
–

–
2,861
2,861

–
–
–
254
254

–
5,289
5,289

–
–
–
1,478
1,478

–
–
–

2,148
–
–
–
2,148

–
–
–
–
–

–
–
–

766,833
–
766,833

2,148
–
–
–
2,148

–
–
–
–
–

–
–
–

1,264,254
–
1,264,254

212

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201439.   CAPI TAL M ANAGE MENT

The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios 
in order to support its business and maximise shareholder value. 

The  Group  manages  its  capital  structure  and  makes  adjustments  to  it,  in  light  of  changes  in  economic 
conditions.  To  maintain  or  adjust  the  capital  structure,  the  Group  may  adjust  the  dividend  payment  to 
shareholders, return capital to shareholders or issue new shares. 

No changes were made in the objectives, policies or processes during the years ended 30 September 2014 
and 30 September 2013.

The Group monitors capital using a gearing ratio, which is net debt divided by total equity, as follows:

Fixed deposits, cash and bank balances
Loans and borrowings
Interest bearing loans due to related companies
Net borrowings

Total equity

Net borrowings over total equity ratio

Group

2014
$'000

2013
$'000

883,604
(7,616,375)
–
(6,732,771)

506,784
(1,804,508)
(1,847,259)
(3,144,983)

7,087,775

5,478,286

0.95

0.57

Certain entities in the Group are required to comply with certain externally imposed capital requirements in 
respect of some of their external borrowings, and these have been compiled with during the year. 

40.  COMMI TM ENTS 

(a)  Capital Commitments

Capital and development expenditures contracted for as at the end of the reporting period but not recognised 
in the financial statements are as follows:

Commitments in respect of contracts placed for:
   –  Estimated development costs for properties held for sale
   –  Capital expenditure costs for investment properties
   –  Share of joint ventures’ capital and development expenditure
   –  Others

Group

2014
$'000

2013
$'000

1,672,587
861,596
278,410
49,195
2,861,788

2,144,291
788,414
339,445
–
3,272,150

213

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201440.   COMMI TM ENTS  ( C ON T’D ) 

(b)  Operating Lease Commitments – as Lessee

Future minimum rental payable under non-cancellable operating leases at the end of the reporting period is 
as follows:

Within 1 year
From 1 year to 5 years
After 5 years

2014
$'000

92,326
346,247
1,209,755
1,648,328

Group

2013
$'000

23,012
7,333
–
30,345

Company

2014
$'000

2013
$'000

–
–
–
–

–
–
–
–

The operating leases do not contain any escalation clauses and do not provide for contingent rents. The lease 
terms do not contain restrictions on the Group activities concerning dividends, additional debts or entering 
into other leasing agreements.

Rental expense recognised in the profit statement is as follows:

Minimum lease payments

(c)  Operating Lease Commitments – as Lessor

Group

2014
$'000

2013
$'000

46,211

25,200

The  Group  has  entered  into  commercial  property  leases  on  its  investment  properties  and  properties  held 
for sale. These non-cancellable leases have remaining non-cancellable lease terms of between 2 to 8 years. 
Future minimum rental receivable under non-cancellable operating leases at the end of the reporting period 
is as follows: 

Within 1 year
From 1 year to 5 years
After 5 years

2014
$'000

290,425
864,212
547,445
1,702,082

Group

2013
$'000

125,114
166,797
63
291,974

Company

2014
$'000

2013
$'000

–
–
–
–

–
–
–
–

Rental income from investment properties is disclosed in Note 14.

Rental income recognised in the profit statement from properties held for sale is as follows:

Minimum lease payments

214

Group

2014
$'000

2013
$'000

99,521

102,093

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
 
 
41.   CONTI NG ENCI ES

Financial Guarantee Contracts

(i) 

(ii) 

As  at  30  September  2014,  the  Company  has  provided  bankers’  guarantees  of  $75,639,000  (2013: 
$61,153,000) to unrelated parties in respect of performance contracts on behalf of certain subsidiaries. 
No liability is expected to arise.

The Company has provided an unconditional and irrevocable corporate guarantee for up to $57 million 
to finance the payment of development charge and construction cost of the New Wing of The Centrepoint 
by The Management Corporation Strata Title Plan No. 1298 (“MCST 1298”). The corporate guarantee 
will only be discharged upon full repayment of the loan by the MCST 1298. As at 30 September 2014, 
the outstanding loan by MCST 1298 is $13,431,000 (2013: $15,431,000).

(iii) 

A  wholly-owned  subsidiary  of  the  Group  has  provided  RMB  206.4  million  (2013:  RMB  176.3  million) 
financial guarantees to banks in China in connection with loans provided by the banks to the subsidiary’s 
property buyers, covering the period from loan contract date to the property delivery date.

42.  SUBS EQUENT  EVENT S

(i) 

(ii) 

On  7  October  2014,  FCL  Treasury  Pte  Ltd  (“FCLT”),  a  wholly-owned  subsidiary  of  the  Company, 
announced that FCLT has issued $200 million in aggregate principal amount of 3.95 per cent notes 
due  2021  (the  “Series  4  Notes”)  under  the  $3,000  million  Multicurrency  Debt  Issuance  Programme 
established by FCLT on 21 March 2012. The obligations of FCLT under the Series 4 Notes are guaranteed 
by the Company.

On  24  October  2014,  the  Group  announced  that  its  subsidiaries,  FCL  Assets  Pte  Ltd  and  Frasers 
(Australia) Pte Ltd, entered into an agreement to acquire the remaining 8% of the issued share capital 
of Frasers Town Hall Pty Ltd (“FTHPL”) held by Genting (NSW) Pty Ltd, in equal share, to increase their 
respective shareholding interest in FTHPL to 50% each (the “Acquisition”). The aggregate consideration 
for the Acquisition is approximately $2,364,000.

(iii) 

On  31  October  2014,  the  Group  completed  the  compulsory  acquisition  of  the  remaining  interest  to 
make Australand a wholly-owned subsidiary of the Group. Australand has since been removed from 
the official list of ASX.

(iv) 

On 12 November 2014, in an Extraordinary General Meeting of the Company, shareholders approved:

(a) 

(b) 

 Retroactively  the  acquisition  of  up  to  100%  of  the  Australand  Securities  via  an  off-market 
takeover offer for cash consideration; and

 The proposed issue and placement of Perpetual Capital Securities to TCC Prosperity Limited 
(“TCCPL”),  a  wholly-owned  corporation  of  substantial  shareholder,  TCC  Group,  subject  to  a 
maximum of 50% of the proposed offer of $600 million.

215

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
 
 
43.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S 

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Company

Country of Incorporation and Place of Business: Singapore

(a) FCL Property Investments Pte. Ltd.
(a) FCL Enterprises Pte. Ltd.
(a) Riverside Property Pte. Ltd.
(a) FCL Centrepoint Pte. Ltd.
(a) Orrick Investments Pte Limited
(a) Yishun Development Pte Ltd
(a) FCL Alexandra Point Pte. Ltd.
(a) Woodlands Complex Pte Ltd
(a) Riverside Walk Pte Ltd
(a) FCL Ventures Pte. Ltd.
(a) FCL Management Services Pte. Ltd.
(a) Riverside Investments Pte Ltd
(a) Yishun Land Pte Ltd
(a) Yishun Property Pte Ltd
(a) FCL Tampines Pte. Ltd.
(a) FCL Homes Pte. Ltd.
(a) FCL Land Pte. Ltd.
(a) FCL Assets Pte. Ltd.
(a) FCL Estates Pte. Ltd.
(a) Frasers Hospitality Pte. Ltd.

(a) Frasers (UK) Pte. Ltd.
(a) Frasers (Australia) Pte. Ltd.
(a) FCL (China) Pte. Ltd.
(a) FCL Boon Lay Pte. Ltd.
(a) FCL (Fraser) Pte. Ltd.
(a) FCL Sophia Pte. Ltd.
(a) Frasers Centrepoint Property

Management Services Pte. Ltd.

(a) FCL Choa Chu Kang Pte. Ltd.
(a) FCL Joo Chiat Place Pte. Ltd.
(a) Frasers (NZ) Pte. Ltd.
(a) FCL China Development Pte. Ltd.
(a) FCL Court Pte. Ltd.
(a) FCL Lodge Pte. Ltd.
(a) FCL Place Pte. Ltd.
(a) FCL Rise Pte. Ltd.

216

Property investment
Property investment
Property investment
Investment holding
Property investment
Property development
Property investment
Property development
Property development
Property development
Management services
Property development
Property development
Property development
Property development
Property development
Property development
Investment holding
Property development
Investment holding and
   management services
Investment holding
Investment holding
Investment holding
Property development
Investment holding
Property development
Management services

Property development
Property development
Investment holding
Investment holding
Property development
Property development
Property development
Property development

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
100%

75%
75%
100%
100%
100%
100%
100%

100%
100%
75%
100%
100%
100%
100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
100%

75%
75%
100%
100%
100%
100%
100%

100%
100%
75%
100%
100%
100%
100%
100%

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Subsidiaries of the Company (cont'd)

Country of Incorporation and Place of Business: Singapore (cont'd)

(a) Frasers (Thailand) Pte. Ltd.
(a) River Valley Properties Pte Ltd

(a) Lion (Singapore) Pte. Limited
(a) FCL View Pte. Ltd.
(a) FCL Tower Pte. Ltd.
(a) FCL Loft Pte. Ltd.
(a) Frasers Centrepoint Asset
Management Ltd.
(a) FCL Investments Pte. Ltd.
(a) FCL Trust Holdings Pte. Ltd.
(a) Frasers Hospitality Investment

Holding (Philippines) Pte. Ltd.

Investment holding
Investment holding
  and property development
Property development
Property development
Property development
Property development
Management services

Investment holding
Investment holding
Investment holding

Effective
Shareholding

2014

2013

100%
100%

100%
100%
100%
100%
100%

100%
100%
100%

100%
100%

100%
100%
100%
100%
100%

100%
100%
100%

(a) Frasers Centrepoint Asset

Investment holding

100%

100%

Management (Malaysia) Pte. Ltd.
(a) FCL Trust Holdings (Commercial) Pte. Ltd.
(a) Frasers Centrepoint Asset

Management (Commercial) Ltd

(a) MLP Co Pte. Ltd.
(a) SAJV Co Pte. Ltd.
(a) FCL Clover Pte. Ltd.
(a) FCL Tampines Court Pte. Ltd.
(a) FCL Emerald (1) Pte. Ltd.
(a) FCL Emerald (2) Pte. Ltd.
(a) Opal Star Pte. Ltd.
(a) Fraser Suites Jakarta Pte. Ltd.
(a) Fraser Residence Orchard Pte. Ltd.
(a) Frasers Centrepoint Property

Management (Commercial) Pte. Ltd.

(a) FCL Management Services

(Commercial) Pte. Ltd.

(a) FCL Crystal Pte. Ltd.
(a) FCL Topaz Pte. Ltd.
(a) Frasers Hospitality Investments

Melbourne Pte. Ltd.
(a) FCL Treasury Pte. Ltd.
(a) Frasers Land Pte. Ltd.

Investment holding
Asset management, fund and
   property management and
   related advisory services
Investment holding
Investment holding
Financial services
Investment holding
Investment holding
Investment holding
Investment holding
Investment holding
Operation of serviced apartments
Asset management, fund
   and property management
   and related advisory services
Management services

Property development
Investment holding
Investment holding

Financial services
Property development

100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

100%

100%

100%
100%
100%

100%
100%

100%
100%
100%

100%
100%

217

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Subsidiaries of the Company (cont'd)

Country of Incorporation and Place of Business: Singapore (cont'd)

(a) FCL Aquamarine Pte. Ltd.
(a) FC Commercial Trustee Pte. Ltd.
(a) FCL Amber Pte. Ltd.
(a) FC North Gem Trustee Pte. Ltd.
(a) Frasers Hospitality Group Pte. Ltd.
(a) Frasers Hospitality Asset Management Pte. Ltd. Investment holding

Investment holding
Trustee-management services
Investment holding
Trustee-management services
Management services

(formerly FCL Pearl Pte. Ltd.)

(a) Frasers Hospitality Trust Management Pte. Ltd. Business and management

(formerly FCL Quartz Pte. Ltd.)

(a) Frasers Hospitality Dalian Holding Pte. Ltd.
(a) Frasers Hospitality ML Pte. Ltd.
(a) Frasers Amethyst Pte. Ltd.

   consultancy services
Investment holding
Investment holding
Investment holding

Country of Incorporation and Place of Business: Hong Kong

Effective
Shareholding
2014

2013

100%
100%
100%
100%
100%
100%

100%

100%
100%
100%

100%
100%
100%
100%
–
–

–

–
–
–

(a) Excellent Esteem Limited

Investment holding

100%

100%

Subsidiaries of the Group

Country of Incorporation and Place of Business: Singapore

(a) Frasers Hospitality Management Pte. Ltd.
Management consultancy services
(a) Frasers Hospitality Property Services Pte. Ltd. Management consultancy services
Management consultancy services
(a) Frasers Hospitality Changi City Pte. Ltd.
Management services
(a) FC Hotel Trustee Pte. Ltd.
Investment holding
(a) Ruby Star Trust
Investment holding
(a) Sinomax International Pte. Ltd.
Investment holding
(a) Singapore Logistics Investments Pte. Ltd.
Property investment
(a) Emerald Hill Developments Pte. Ltd.
Property investment
(a) River Valley Shopping Centre Pte. Ltd.
Property investment
(a) River Valley Tower Pte. Ltd.
Property investment
(a) River Valley Apartments Pte. Ltd.
Property development
(a) FCL Compassvale Pte. Ltd.
Property development
(a) FCL Admiralty Pte. Ltd.
Property development
(a) Punggol Residences Pte. Ltd.
Property investment and development
(a) Aquamarine Star Trust
Property development
(a) North Gem Development Pte. Ltd.
Property investment and development
(a) North Gem Trust
Investment holding
(a) Frasers Property (Europe) Holdings Pte. Ltd.

100%
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
80%
70%
80%
100%
100%
100%
80%

100%
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
80%
70%
80%
100%
100%
100%
80%

218

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding
2014

2013

Subsidiaries of the Group (cont’d)

Country of Incorporation and Place of Business: United Kingdom

(c) Frasers Projects Ltd
(c) The School House (Tunbridge Wells) Limited
(c) Frasers General Partner Limited
(c) Frasers FB (UK) Group Limited
(c) Frasers FB (House) Limited
(c) Frasers Homes (UK) Ltd
(c) Frasers (Buckswood Grange) Limited
(c) Frasers Islington Limited
(c) Frasers Islington Properties Limited
(c) Frasers (Brown Street) Limited
(c) Frasers (Vincent Square) Ltd
(c) Frasers Lumiere Leeds Ltd
(c) Frasers Management (UK) Ltd
(c) Frasers (Riverside Quarter) Ltd
(c) Frasers (Maidenhead) Ltd 
(c) Frasers Imperial Place Ltd
(c) Frasers Property (UK) Limited
(c) Frasers Property Developments Ltd
(c) Frasers Investments (UK) Limited
(c) Frasers Ventures Limited
(c) Frasers FB (UK) Limited
(c) Fairdace Limited
(c) Frasers Hospitality (UK) Limited

(c) Frasers St Giles Street Management Ltd
(c) 39 QGG Management Limited
(c) Frasers Hospitality Frankfurt Investment Ltd
(c) Fairbriar Residential Investment

Property development
Property development
Property investment
Investment holding
Investment holding
Property development
Property development
Property development
Property development
Property development
Property development
Investment holding
Management services
Property development
Property development
Property development
Investment holding
Investment holding
Property investment
Property development
Property investment
Serviced apartments
Management consultancy services
  and serviced apartments
Property management
Management services
Investment holding
Investment in residential property

Partnership

fund

Country of Incorporation and Place of Business: Australia 

(a) Frasers Property Australia Pty Ltd
(a) Frasers Property Management 

Australia Pty Limited
(a) Frasers Chandos Pty Limited
(a) Frasers Lorne Pty Limited
(a) Frasers Mandurah Pty Limited

Investment holding
Management services

Property development
Property development
Property development

80%
80%
80%
80%
80%
80%
80%
79.2%
79.2%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
100%
100%

100%
100%
100%
100%

75%
75%

75%
75%
56.3%

80%
80%
80%
80%
80%
80%
80%
79.2%
79.2%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
100%
100%

100%
100%
100%
100%

75%
75%

75%
75%
56.3%

219

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014 
43.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(a) Frasers Killara Pty Ltd
(a) Frasers Morton Pty Ltd
(a) Frasers Broadway Pty Ltd 
(a) Frasers Homes WA Pty Limited
(a) Frasers Putney Pty Limited
(a) Frasers Central Park Holdings No. 1 Pty Ltd
(a) Frasers Central Park Holdings No. 2 Pty Ltd
(a) Frasers Brisbane Management Pty Ltd
(a) Frasers Brisbane Apartments Pty Ltd

Property development
Property development
Property development
Builder
Property development
Investment holding
Investment holding
Trustee-management services
Management and consultancy 
  services
Dormant

(a) FCL Bridgepoint Australia Pty Ltd
(a) Frasers Hospitality Sydney Investments Pty Ltd Investment holding
Investment holding
(a) Frasers Sydney ML Hotel Pty Ltd
Investment holding
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Holding entity
Holding entity
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment

(1)(d) Apartment (Altona No. 2) Trust
(1)(d) Apartment (Altona No. 3) Trust
(1)(d) Apartment (Berrinba No. 1) Trust
(1)(d) Apartment (Collins St No. 1) Trust
(1)(d) Apartment (Derrimut No. 1) Trust
(1)(d) Apartment (Derrimut No. 2) Trust
(1)(d) Apartment (Eastern Creek No. 2) Trust
(1)(d) Apartment (Eastern Creek No. 3) Trust
(1)(d) Apartment (Eastern Creek No. 4) Trust
(1)(d) Apartment (Eastern Creek No. 5) Trust
(1)(d) Apartment (Eastern Creek No. 6) Trust
(1)(d) Apartment (Inala/Richlands No. 1) Trust
(1)(d) Apartment (Keysborough No. 1) Trust
(1)(d) Apartment (Keysborough No. 2) Trust
(1)(d) Apartment (Keysborough No. 3) Trust
(1)(d) Apartment (Keysborough No. 4) Trust
(1)(d) Apartment (Northgate No. 1) Trust
(1)(d) Apartment (Parkinson No. 1) Trust
(1)(d) Apartment (Parkinson No. 2) Trust
(1)(d) Apartment (Port Kembla No. 1) Trust
(1)(d) Apartment (Truganina No. 1) Trust
(1)(d) Apartment (Truganina No. 2) Trust

75%
75%
75%
56.3%
75%
75%
75%
100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

75%
75%
75%
56.3%
75%
75%
75%
100%
100%

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–

220

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Apartment Altona Toll Trust
(1)(d) Apartment Clayton South No. 1 Unit Trust
(1)(d) Apartment Erskine Park No. 2 Unit Trust
(1)(d) Apartment Logistics Trust
(1)(d) Apartment Rhodes F Unit Trust
(1)(d) Apartment Rhodes No. 1 Unit Trust
(1)(d) Apartment Seven Hills No. 2 Unit Trust
(1)(d) Apartment Seven Hills No. 5 Unit Trust
(1)(d) Apartment Tullamarine No. 1 Unit Trust
(1)(d) Australand C & I Land Holdings

(Eastern Creek Stage 4 No. 1) Trust

(1)(d) Australand C & I Land Holdings
(Keysborough) Trust

Property investment
Property investment
Property investment
Investment holding
Property investment
Property investment
Property investment
Property investment
Property investment
Property development

Property development

(1)(d) Australand C & I Land Holdings (Rowville) Trust
(1)(d) Australand C & I Land Holdings

Property development
Property development

(The Ponds No. 1) Trust

(1)(d) Australand Cambridge Street Unit Trust
(1)(d) Australand Car Park Trust
(1)(d) Australand Citta Gold Games Trust
(1)(d) Australand Industrial No. 101 Trust
(1)(d) Australand Industrial No. 101 Trust (No. 2)
(1)(d) Australand Industrial No. 101 Trust (No. 3)
(1)(d) Australand Jets Court Unit Trust (No. 1)
(1)(d) Australand Jets Court Unit Trust (No. 2)
(1)(d) Australand Parkinson Trust
(1)(d) Australand Port Melbourne Unit Trust
(1)(d) Australand Property Trust
(1)(d) Australand Property Trust No. 4
(1)(d) Australand Property Trust No. 5

Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Property investment
Corporate
Property investment
Holding entity

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

100%

100%
100%

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

–
–
–
–
–
–
–
–
–
–

–

–
–

–
–
–
–
–
–
–
–
–
–
–
–
–

221

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Australand Residential (Burwood No. 2) Unit Trust

Property investment

(1)(d) Australand Residential Ashlar Unit Trust

Property development

(1)(d) Australand Residential Cranbourne Unit Trust

Property development

(1)(d) Australand Retail JV Trust

(1)(d) Australand Retail Trust

(1)(d) Australand West Park No. 1 Trust

(1)(d) Australand West Park Truganina Trust

(1)(d) Australand Wholesale Property Trust

Holding entity

Holding entity

Property development

Property development

Property investment

(1)(d) Australand Wholesale Property Trust No. 2

Investment holding

(1)(d) Australand Wholesale Property Trust No. 3

Investment holding

(1)(d) AWPT No. 4 Holding Trust

(1)(d) AWPT3 Greystanes Holding Trust No. 1

(1)(d) AWPT3 Greystanes Holding Trust No. 2

(1)(d) AWPT4 NSW Holding Trust No. 1

(1)(d) AWPT4 NSW Holding Trust No. 2

(1)(d) AWPT5 Holding Trust No. 3

(1)(d) AWPT5 Holding Trust No. 5

(1)(d) AWPT5 Holding Trust No. 6

(1)(d) AWPT5 Intermediate Trust

(1)(d) Berwick Retail Trust

(1)(d) Burbridge Investment Trust

(1)(d) Burbridge Park Industrial Trust B

(1)(d) Burbridge Park Industrial Trust C

(1)(d) Burbridge Park Industrial Trust D

Investment holding

Investment holding

Investment holding

Investment holding

Investment holding

Property investment

Property investment

Property investment

Investment holding

Property investment

Property investment

Property investment

Property investment

Property investment

(1)(d) Chatswood Unit Trust

Property development

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

222

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Eastern Creek Investment Trust No. 2

Property investment

(1)(d) Eastern Creek No. 1 Unit Trust

Property development

(1)(d) Freshwater Holding Trust No. 2

(1)(d) Freshwater Holding Trust No. 5

(1)(d) Freshwater Office Trust No. 2

(1)(d) Freshwater Stage 4 No. 2 Unit Trust

(1)(d) Freshwater Stage 4 Unit Trust

(1)(d) Greystanes No. 1 Unit Trust

(1)(d) Greystanes No. 2 Unit Trust

(1)(d) Henry Deane Building Trust

(1)(d) Horrie Miller Drive Unit Trust

(1)(d) Huntingwood Trust

(1)(d)

Industrial Project No. 2 Unit Trust

(1)(d)

Industrial Project No. 3 Unit Trust

(1)(d) Mascot No. 1 Unit Trust

(1)(d) No. 9 Stradbroke Street Unit Trust

(1)(d) Outer Harbour Unit Trust

(1)(d) Platinum Street Trust

(1)(d) Port Coogee Seabed Unit Trust

(1)(d) Queensport Road Unit Trust

(1)(d) Rhodes No. 8 Unit Trust

(1)(d) Rhodes No. 9 Unit Trust

(1)(d) Shettleston Street Trust

(1)(d) Smeaton Grange Trust

(1)(d) South Park Industrial Trust A

(1)(d) South Park Industrial Trust B

(1)(d) South Park Investment Trust

Investment holding

Investment holding

Property investment

Property development

Property development

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property development

Property investment

Property development

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

223

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) South Park No. 116 Trust (No. 1)

(1)(d) South Park No. 125 Trust

(1)(d) South Park No. 2 Unit Trust

(1)(d) South Park Unit Trust

(1)(d) Stanton Road No. 1 Unit Trust

(1)(d) Stanton Road No. 2 Unit Trust

(1)(d) The Gateway Building Trust

(1)(d) Trade Street Unit Trust

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

(1)(d) Trust Project No. 11 Unit Trust

Property development

(1)(d) Trust Project No. 9 Unit Trust

(1)(d) Tullamarine No. 1 Unit Trust

(1)(d) Twenty8 Freshwater Place Unit Trust

(1)(d) Walter Road Unit Trust

(1)(d) West Park Investment Trust No. 2

(1)(d) West Park No. 116 Trust (No. 1)

(1)(d) West Park No. 118 Trust

(1)(d) Wolli Creek No. 1 Unit Trust

(1)(d) Wolli Creek No. 10 Unit Trust

(1)(d) Wolli Creek No. 2 Unit Trust

(1)(d) Wolli Creek No. 3A Unit Trust

(1)(d) Wolli Creek No. 3B Unit Trust

(1)(d) Wolli Creek No. 4 Unit Trust

(1)(d) Wolli Creek No. 5 Unit Trust

(1)(d) Wolli Creek No. 6 Unit Trust

(1)(d) Wolli Creek No. 7A Unit Trust

(1)(d) Wolli Creek No. 7B Unit Trust

(1)(d) Wolli Creek No. 8 Unit Trust

(1)(d) Wolli Creek No. 9A Unit Trust

(1)(d) Wolli Creek No. 9B Unit Trust

(1)(d) Wolli Creek Unit Trust

224

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property investment

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Property development

Investment holding

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) AHL (Perth) Pty Limited

(1)(d) AHL Centenary Pty Limited

(1)(d) AHL Projects Pty Limited

(1)(d) AHL Real Estate (Vic) Pty Limited

(1)(d) AHL Real Estate Pty Limited

(1)(d) Australand Avondale Pty Limited

Management services

Property development

Finance

Management services

Management services

Investment holding

(1)(d) Australand Car Park Operations Pty Limited

Management services

(1)(d) Australand Consolidated Investments Pty Limited Investment holding

(1)(d) Australand Constructions Pty Limited

Management services

(1)(d) Australand Coorparoo Holdings Pty Limited

Property development

(1)(d) Australand Coorparoo Pty Limited

Investment holding

(1)(d) Australand Corporation (NSW) Pty Limited

Investment holding

(1)(d) Australand Corporation (Qld) Pty Ltd

Property development

(1)(d) Australand Developments (NSW) Pty Limited

Investment holding

(1)(d) Australand Finance Pty Limited

Finance

(1)(d) Australand Funds Management Limited

Management services

(1)(d) Australand HK Company Limited

(1)(d) Australand Holdings Limited

Management services

Property development

(1)(d) Australand Industrial Construction Pty Limited

Management services

(1)(d) Australand Industrial No. 100 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 101 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 102 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 103 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 105 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 106 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 107 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 110 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 111 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 112 Pty Limited

Investment holding

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

225

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Australand Industrial No. 113 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 115 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 117 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 118 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 122 Pty Limited

Property development

(1)(d) Australand Industrial No. 125 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 128 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 129 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 133 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 134 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 137 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 139 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 14 Pty Limited

Trustee

(1)(d) Australand Industrial No. 140 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 141 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 145 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 146 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 147 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 148 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 149 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 153 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 154 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 155 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 158 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 16 Pty Limited

Property development

(1)(d) Australand Industrial No. 160 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 161 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 162 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 163 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 18 Pty Limited

Trustee

226

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Australand Industrial No. 63 Pty Limited

Property development

(1)(d) Australand Industrial No. 68 Pty Limited

Property development

(1)(d) Australand Industrial No. 69 Pty Limited

Property development

(1)(d) Australand Industrial No. 70 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 72 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 76 Pty Limited

Property development

(1)(d) Australand Industrial No. 81 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 84 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 85 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 86 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 88 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 89 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 90 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 91 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 92 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 93 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 94 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 96 Pty Limited

Investment holding

(1)(d) Australand Industrial No. 98 Pty Limited

Investment holding

(1)(d) Australand Inter Entity Finance Pty Limited

(1)(d) Australand Investment Finance Pty Limited

Finance

Finance

(1)(d) Australand Investments Limited

Management services

(1)(d) Australand Kellyville Partnership Pty Limited

Investment holding

(1)(d) Australand Land and Housing No. 5
(Hope Island) Pty Limited

(1)(d) Australand Land and Housing No. 7
(Hope Island) Pty Limited

(1)(d) Australand Land and Housing No. 8
(Hope Island) Pty Limited

Property development

Property development

Property development

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

227

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d) Australand Management Services Pty Limited

Investment holding

(1)(d) Australand Northshore Pty Limited

(1)(d) Australand Omeo Finance Pty Limited

Investment holding

Investment holding

(1)(d) Australand Property Group Pty Limited

Management services

(1)(d) Australand Property Holdings Pty Limited

Investment holding

(1)(d) Australand Property Limited

Management services

(1)(d) Australand Queensland Constructions 

Investment holding

  Pty Limited

(1)(d) Australand Residential No. 126 Pty Limited

Investment holding

(1)(d) Australand Residential No. 130 Pty Limited

Investment holding

(1)(d) Australand Residential No. 138 Pty Limited

Investment holding

(1)(d) Australand Residential No. 143 Pty Limited

Investment holding

(1)(d) Australand Residential No. 150 Pty Limited

Investment holding

(1)(d) Australand Residential No. 156 Pty Limited

Investment holding

(1)(d) Australand Residential No. 164 Pty Limited

Investment holding

(1)(d) Australand Residential No. 165 Pty Limited

Investment holding

(1)(d) Australand Residential No. 75 Pty Limited

Investment holding

(1)(d) Australand Residential Project Management

Property development

Pty Limited

(1)(d) Australand Retail Investments Pty Limited

Property development

(1)(d) Australand Retail Portfolio Pty Limited

Property development

(1)(d) Australand Valley Part Pty Limited

Management services

(1)(d) Australand Wholesale Holdings Pty Limited

Management services

(1)(d) Australand Wholesale Investments (Custodian)

Management services

Pty Limited

(1)(d) AWPT Finance Pty Limited

(1)(d) AWPT No. 3 Construction Finance Pty Limited

(1)(d) AWPT No. 3 Post Construction Finance 

  Pty Limited

Finance

Finance

Finance

(1)(d) Cinamist Pty Limited

Property development

(1)(d) Clemton Park Development No. 1 Pty Limited

Property development

(1)(d) Discovery Point Pty Limited

Property development

228

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Australia (cont'd)

(1)(d)

Interciti Amcliffe Pty Ltd

(1)(d) Jacday Pty Limited

Property development

Investment holding

(1)(d) JEM Warehouse Bonds Pty Limited

Investment holding

(1)(d) Melbourne Apartment Developments  

Management services

Pty Limited

(1)(d) Newcastle Guarantee Corporation  

Property development

Pty Limited

(1)(d) PDI (Qld) Pty Limited

Property development

(1)(d) Port Catherine Development Pty Ltd

Property development

(1)(d) Regency Chatswood Constructions  

Investment holding

Pty Limited

(1)(d) T.M. Burke Estates Proprietary Limited

Property development

(1)(d) Wharf W Pty Limited

Investment holding

Country of Incorporation and Place of Business: New Zealand

(1)(a) Frasers Broadview Limited

(1)(a) Frasers Papamoa Limited

Property development

Property development

Country of Incorporation and Place of Business: Philippines

(1)(a) Frasers Hospitality Philippines, Inc

Management consultancy services

(1)(a) Frasers Hospitality Investments Inc.

Property investment

Country of Incorporation and Place of Business: Thailand

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

75%

67.5%

100%

100%

–

–

–

–

–

–

–

–

–

–

75%

67.5%

100%

100%

(1)(a) Frasers Hospitality (Thailand) Limited

Management consultancy services

100%

100%

Country of Incorporation and Place of Business: Japan

(b) Frasers Hospitality Japan Kabushiki Kaisha Management consultancy services

100%

100%

229

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: India

(a) Frasers Hospitality India Pty Ltd

Management consultancy services

100%

100%

Country of Incorporation: Jersey, Channel Islands and Place of Business: United Kingdom

(c) Frasers (St Giles Street, Edinburgh) Limited

Property investment

(c) Queensgate Gardens (C.I.) Limited

Property investment

100%

100%

100%

100%

Country of Incorporation and Place of Business: France

(c) Societe de Gestion de Residence La Defense

Management services

100%

100%

Country of Incorporation and Place of Business: Indonesia

(1)(a) PT Frasers Hospitality Investments Indonesia

Property investment

100%

100%

Country of Incorporation and Place of Business: Vietnam

(a) Me Linh Point Limited

Property investment

75%

75%

Country of Incorporation and Place of Business: China

(1)(e) Shanghai Frasers Management
Consultancy Co., Ltd

(1)(e) Beijing Sin Hua Yan Real Estate
Development Co., Ltd

Management services

100%

100%

Property development

100%

100%

(1)(e) Singlong Property Development

Property development

100%

100%

(Suzhou) Co., Ltd

(1)(e) Frasers Property Management
(Shanghai) Co., Ltd

Management services

100%

100%

(1)(e) Chengdu Sino Singapore Southwest

Property development

80%

80%

Logistics Co., Ltd

(1)(e) Frasers Hospitality Management

Management consultancy services

100%

100%

Co., Ltd, Shanghai

(1)(e) Fraser Place (Beijing) Property
Management Co., Ltd

Management consultancy services

100%

100%

(1)(e) Modena Hospitality Management

Management consultancy services

51%

51%

Co., Ltd. (Shanghai)

(1)(e) Beijing Fraser Suites Real Estate
Management Co., Ltd

Property investment

100%

100%

230

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 2014 
43.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Subsidiaries of the Group (cont'd)

Country of Incorporation and Place of Business: Hong Kong

(e) Ace Goal Limited

(e) Extra Strength Limited

(e) Forth Carries Limited

(e) Forward Plan Limited

(e) Summit Park Limited

(e) Superway Logistics Investments

(Hong Kong) Limited

Investment holding

Investment holding

Investment holding

Investment holding

Investment holding

Investment holding

Effective
Shareholding

2014

2013

100%

100%

100%

100%

100%

80%

100%

100%

100%

100%

100%

80%

(e) Frasers Hospitality (Hong Kong) Limited

Management consultancy services

100%

100%

Country of Incorporation and Place of Business: Thailand

(1)(a) Riverside Homes Development Co., Ltd

Property development

69.6% (5)

69.6% (5)

Joint Ventures of the Group

Country of Incorporation and Place of Business: Singapore

(a) FCL Peak Pte. Ltd.

(2)(a) Ascendas Frasers Pte. Ltd.

(a) Yishun Gold Pte. Ltd.

(a) Precious Sand Pte. Ltd.

(a) Easthouse Properties Pte. Ltd.

(a) Emerald Star Pte. Ltd.

(a) Sapphire Star Trust

Property development

Property development

Property development

Property development

Property development

Property development

Property investment and
   development

(a) FC Retail Trustee Pte. Ltd.

Trustee-management services

(a) eCO Properties Pte. Ltd.

(a) Quarry Bay Pte. Ltd.

(a) WaterVine Homes Pte. Ltd.

Property development

Property development

Property development

Country of Incorporation and Place of Business: Malaysia

50%

50%

50%

50%

50%

33.3%

33.3%

33.3%

33.3%

33.3%

40%

50%

50%

50%

50%

50%

33.3%

33.3%

33.3%

33.3%

33.3%

40%

(a) Vacaron Company Sdn Bhd

Property development

50%

50%

Country of Incorporation and Place of Business: United Kingdom

(c) GSF Homes Limited

Property development

(c) Sovereign House Fairbriar Homes Ltd

Property development

(c) Fairmuir Limited

Property development

40%

40%

40%

40%

40%

40%

231

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Joint Ventures of the Group (cont’d)

Country of Incorporation and Place of Business: Australia

(4)(a) Frasers Central Park

Property development

37.5%

37.5%

Equity No. 1 Pty Ltd and
SH Central Park Development
East Pty Ltd

(4)(a) Frasers Central Park

Property development

37.5%

37.5%

Equity No. 2 Pty Ltd and
SH Central Park Development
West Pty Ltd

Australand Group Joint Ventures

(1)(d) Australand Apartments No. 6 Pty Limited

Property development

(1) (d) Port Coogee Finance Pty Limited

(1) (d) Australand Residential Trust

(1) (d) Berwick Investment Trust

(1)(d) Chymont Unit Trust

(1)(d) CIP ALZ Gillman Trust

(1)(d) CIP ALZ Goulbum Industrial Unit Trust

Finance

Investment holding

Investment holding

Investment holding

Property development

Property development

(1)(d) CIP ALZ Horrie Miller Drive Industrial Unit Trust

Property development

(1)(d) CIP ALZ (MA) Trust

(1)(d) CIP ALZ (WA) Unit Trust

(1)(d) CIP ALZ (Wellington Road) Unit Trust

Property development

Property development

Property development

(1)(d) Commercial & Industrial Property (Mt Waverley) Trust

Property development

(1)(d) Commercial & Industrial Property (Pinkenba) Trust

Property development

(1)(d) Commercial & Industrial Property
(Port Melbourne) Trust

(1)(d) Croydon Development Trust

(1)(d) Freshwater Residential Unit Trust

(1)(d) Australand North Ryde Trust

Property development

Property development

Investment holding

Property development

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

50%

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

232

Frasers centrepoint limited & subsidiariesNOTES TO THE FINANCIAL STATEMENTSFor tHe Year ended 30 september 201443.   SI GNI FICANT S UBSI DI AR IES,  J OI NT  VE NTU RES  A ND  ASSOC IATE S (CO NT’D )

Principal Activities

Effective
Shareholding

2014

2013

Associates of the Group

Country of Incorporation and Place of Business: Singapore

(a) Frasers Commercial Trust

(a) Frasers Centrepoint Trust

Real estate investment trust

27.9%

27.9%

Real estate investment trust

41%

19%

41%

19%

(3)(a) Gemshine Investments (S) Pte Ltd

Investment holding

Country of Incorporation and Place of Business: Thailand

(1)(a) Krungthep Land Public Company Limited

Investment holding and
  property development

40.5%

40.5%

Country of Incorporation and Place of Business: Malaysia

(1)(e) Hektar Asset Management Sdn Bhd

Management services

40%

40%

Country of Incorporation and Place of Business: British Virgin Islands

(b) Supreme Asia Investments Limited

Investment holding

43.3%

43.3%

Country of Incorporation and Place of Business: China

(1)(e) Shanghai Zhong Jun Property Real

Property development

45.2%

45.2%

Estate Development Co, Ltd

(a)

(b)

(c)

(d)

(e)

Audited by Ernst & Young in the respective countries

Not required to be audited under laws of the country of incorporation

Audited by KPMG, Nottingham

Audited by PWC, Sydney

Audited by other firms

Note (1) Accounting year end is 31 December

Note (2) Accounting year end is 31 March

Note (3) Accounting year end is 30 June

Note (4) Unincorporated joint ventures

Note (5) Riverside  Homes  Development  Co.,  Ltd  is  accounted  for  as  a  joint  venture  as  the  Group  exercises  only  joint  control  over  the 

company.

44.   AUTH ORIS AT IO N O F FI NAN CIA L  S TATEM ENTS

The  financial  statements  for  the  financial  year  ended  30  September  2014  were  authorised  for  issue  in 
accordance with a resolution of the directors on 12 November 2014.

233

annual  report2014NOTES TO THE FINANCIAL STATEMENTSFor tHe Year enDeD 30 SepteMBer 2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S

Singapore

Alexandra Point

Robertson Walk & Fraser 
Place Robertson Walk

The Centrepoint

Valley Point

A 24-storey office building at 438 Alexandra Road
Freehold, lettable area – 18,523 sqm

A  10-storey  commercial-cum-serviced  apartment  complex  with 
a  2-storey  basement  carpark,  a  2-storey  retail  podium  and  164 
serviced apartment units at Robertson Walk Shopping Centre and 
Fraser Place Robertson Walk, 11 Unity Street
Leasehold (Lease expires year 2840)
Lettable area : 

Retail 
Serviced apartments 
Total 

9,016 sqm
17,694 sqm
26,710 sqm 

A  7-storey  shopping-cum-residential  complex  with  2  basement 
floors at The Centrepoint, 176 Orchard Road
Freehold  and  leasehold  (Lease  expires  year  2078),  lettable  area  – 
30,967 sqm

A  20-storey  commercial-cum-serviced  apartment  complex  with  a 
5-storey covered carpark, a 5-storey podium block, a 2-storey retail 
podium and 255 serviced apartment units at Valley Point Shopping 
Centre/Office  Tower  and  Fraser  Suites  River  Valley,  River  Valley 
Road
Leasehold (Lease expires year 2876)
Lettable area : 

Retail 
Office 
Total 

3,699 sqm
16,948 sqm
20,647 sqm 

One@Changi City Business 
Park

A 9-storey commercial business park building at 1 Changi Business 
Park Central 1
Leasehold (Lease expires year 2069), lettable area – 61,299 sqm

51 Cuppage Road

A 10-storey commercial building at 51 Cuppage Road
Leasehold (Lease expires year 2095), lettable area – 25,682 sqm

Centrepoint Apartment

An apartment unit

112  serviced  apartment  units  in  2  blocks  of  high  rise  building  at 
Melbourne, VIC 3000
Freehold, lettable area – 3,801 sqm

Australia

Fraser Place Melbourne

234

Book Value
$’000

 289,000 

 325,000 

 645,494 

 295,000 

 150,000 

 400,000 

 1,600 

 32,993 

Frasers centrepoint limited & subsidiaries 
 
 
 
 
 
 
 
 
P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Australia (cont’d)

Capri by Fraser, Brisbane

239 units of hotel residences at 80 Albert St, Brisbane, Australia
Freehold, lettable area – 9,468 sqm

Australand Group’s 
Completed Investment 
Properties

A  property  comprising  a  warehouse  and  office  at  6  Butu  Wargun 
Drive, Greystanes, NSW
Lettable area – 19,218 sqm

A  property  comprising  a  warehouse  facility,  two  level  office  and 
showroom at 21-33 South Park Drive, Dandenong South, VIC
Lettable area – 22,106 sqm

A  car  park  comprising  267  public  car  parking  spaces  with  direct 
access to the Melbourne Freeway network at Freshwater Car Park, 
Southbank, VIC

A property  comprising a warehouse and a single storey office at 64 
West Park Drive, West Park, Derrimut, VIC
Lettable area – 20,337 sqm

A  property  comprising an  industrial  facility  with  a  warehouse and 
an attached single level office building at 81-103 South Park Drive, 
Dandenong South, VIC
Lettable area – 10,425 sqm

A property comprising a freestanding industrial distribution facility 
at 8 Butu Wargun Drive, Greystanes, NSW
Lettable area – 22,511 sqm

A property comprising a distribution facility incorporating a single 
level  office  attached  to  a  large  warehouse  at  468  Boundary  Road, 
West Park, Derrimut, VIC
Lettable area – 24,732 sqm

A  property  comprising  a  large  refrigerated  warehouse  and 
distribution centre together with a two storey office at 3135 & 3277 
Beaudesert Road, Parkinson, QLD
Lettable area – 54,245 sqm

A property comprising  an industrial office and warehouse facility at 
98-126 South Park Drive, Dandenong, VIC
Lettable area – 21,070 sqm

An apartment unit at 138 Ferney Ave, Surfers Paradise, QLD

A  property  comprising  an  office  and  warehouse  facility  at  18-20 
Butler Blvd, Burbridge Business Park, Adelaide Airport, SA
Lettable area – 6,991 sqm

Book Value
$’000

 61,508 

 32,424 

 21,958 

 17,748 

 22,185 

 10,808 

 35,724 

 24,574 

 209,337 

 24,152 

 114 

 9,500 

235

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

A property comprising an industrial facility with two separate offices 
and warehouses at 25 – 29 Jets Court, Melbourne Airport Business 
Park, Tullamarine, VIC
Lettable area – 15,544 sqm

A property comprising a warehouse and distribution facility with a 
single level office at 38-52 Sky Road, Melbourne Airport Business 
Park, Tullamarine, VIC
Lettable area – 46,231 sqm

A property comprising a warehouse facility and a freestanding two 
level  office  at  Spring  Valley  Business  Park,  610  Heatherton  Rd, 
Clayton South, VIC
Lettable area – 8,387 sqm

A  property  comprising  a  warehouse  and  distribution  facility  at  44 
Cambridge St, Rocklea, QLD
Lettable area – 10,923 sqm

An office tower at 28 Southbank Blvd, Southbank, VIC 
Lettable area – 33,993 sqm

A  property  comprising  an  industrial  facility,  two  level  office  and 
ground  floor  café  at  115-121  South  Centre  Rd,  Melb  Airport, 
Tullamarine, VIC
Lettable area – 3,085 sqm

A  property  comprising  a  warehouse  distribution  facility  and  a 
two  level  office  at  28-32  Sky  Road  East,  Melb  Airport  Bus  Park, 
Tullamarine, VIC
Lettable area – 12,086 sqm

A  property  comprising  a  two  storey  office  and  warehouse  facility 
with  multiple  loading  docks  at  8  Distribution  Place,  Seven  Hills, 
NSW
Lettable area – 13,189 sqm

A property comprising a warehouse facility and a single level office 
at 1 West Park Dr, Derrimut, VIC
Lettable area – 10,078 sqm

A  property  comprising  the  common  facilities  including  a  café, 
childcare centre, car wash, gym, pool and common parking areas at 
Rhodes Corp Park, 1 Homebush Bay Drive, Rhodes, NSW
Lettable area – 1,053 sqm

Book Value
$’000

 12,742 

 24,062 

 28,329 

 17,634 

 139,937 

 6,826 

 9,670 

 22,185 

 9,386 

 8,817 

Australia (cont’d)

Australand Group’s 
Completed Investment 
Properties (cont’d)

236

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Australia (cont’d)

Australand Group’s 
Completed Investment 
Properties (cont’d)

A property comprising four industrial units with associated offices 
at BBP2, 5 Butler Blvd, Adelaide Airport, SA
Lettable area – 8,224 sqm

A  property  comprising  an  office  warehouse  at  18  Hudswell  Road, 
Perth Airport, WA
Lettable area – 20,143 sqm

A property comprising an industrial facility with a three level office at 
96-106 Link Road, Melbourne Airport Business Park, Tullamarine, 
VIC
Lettable area – 18,598 sqm

A  property  comprising  two  warehouse  and  distribution  facilities 
with  associated  office  accommodation  at  17-23  Jets  Court,  Melb 
Airport Bus Park, Tullamarine, VIC
Lettable area – 9,869 sqm

A  property  comprising  a  two  level  office  and  warehouse  at  260 
Earnshaw Rd, Northgate, QLD
Lettable area – 30,779 sqm

A property comprising a warehouse facility and associated office at 
230-242 Greens Rd & South Park Dr, Dandenong VIC
Lettable area – 12,729 sqm

A property comprising an office and warehouse facility at BBP4, 20-
24 Butler Blvd, Adelaide Airport, SA
Lettable area – 11,197 sqm

A property comprising an office and warehouse at Lots 104 & 105 
Tom Thumb Road, Port Kembla, NSW
Lettable area – 3,283 sqm

A property comprising office accommodation and retail amenity at 
351-357 Collins St, Melbourne, VIC
Lettable area – 32,110 sqm

A  property  comprising  a  warehouse  and  associated  offices  at  99 
Station Road, Seven Hills, NSW
Lettable area – 10,772 sqm

A property comprising two attached warehouses with internal office 
accommodation at 1 & 15 Sunline Drive, West Park, Derrimut, VIC 
Lettable area – 26,153 sqm

Book Value
$’000

 8,931 

 24,176 

 29,922 

 8,419 

 55,975 

 12,628 

 11,718 

 25,598 

 235,521 

 17,521 

 29,125 

237

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Australia (cont’d)

Australand Group’s 
Completed Investment 
Properties (cont’d)

A  property  comprising  two  units  warehouse  and  office  facility  at 
144-166 Atlantic Drive, Keysborough, VIC
Lettable area – 27,272 sqm

A property comprising an industrial warehouse and an attached two 
level office building at 49-71 Pacific Drive, Keysborough, VIC
Lettable area – 25,163 sqm

A  property  comprising  office  accommodation  at  Rhodes  F, 
Homebush Bay Drive, Rhodes, NSW
Lettable area – 17,650 sqm

A property comprising two warehouse and office at 17 Pacific Dr & 
170-172 Atlantic Dr, Keysbourough, VIC
Lettable area – 30,004 sqm

A property comprising a warehouse and office at 30 Flint St & 374 
Boundary Rd, Inala, QLD
Lettable area – 15,016 sqm

A  property  comprising  a  warehouse  and  ancillary  office  at  4 
Kangaroo Ave, Eastern Ck, NSW
Lettable area – 15,918 sqm

A property comprising three level office accommodation at Building 
10, 658 Church St, Richmond, VIC
Lettable area – 8,049 sqm

A property comprising office complex at 690 Springvale Rd, Mulgrave 
Corporate Park, Mulgrave, VIC
Lettable area – 21,433 sqm

An 8-storey office building at Henry Deane Place, 20 Lee St, Sydney, 
NSW
Lettable area – 9,112 sqm

A  property  comprising  a  warehouse  and  manufacturing  facility  at 
57-71 Platinum St, Crestmead, QLD
Lettable area – 19,299 sqm

A  property  comprising  a  single  level  office  and  warehouse  at  5-7 
Trade St, Lytton, QLD
Lettable area – 14,479 sqm

A  property  comprising  an  office  and  temperature  controlled 
warehouse facility at Lot 102 Coghlan Rd, Outer Harbor, SA
Lettable area – 6,626 sqm

238

Book Value
$’000

 34,131 

 28,954 

 108,798 

 34,315 

 25,371 

 28,443 

 43,233 

 91,016 

 57,169 

 30,149 

 21,844 

 7,168 

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Australia (cont’d)

Australand Group’s 
Completed Investment 
Properties (cont’d)

A property comprising a warehouse and an attached 2-storey office 
at 23 Scanlon Drive, Epping, VIC
Lettable area – 12,361 sqm

A  property  comprising  two  freestanding  industrial  facility  at  2 
Douglas Street, Port Melbourne, VIC
Lettable area – 21,803 sqm

A property comprising a warehouse and distribution facility with a 
single level office at 99 Shettleston St, Rocklea, QLD
Lettable area – 15,186 sqm

A  property  comprising  a  warehouse  and  production  facility  with 
associated office accommodation at 51 Stradbroke St, Heathwood, 
QLD
Lettable area – 14,916 sqm

A property comprising a warehouse and 2-storey office component 
at 227 Walters Road, Arndell Park, NSW
Lettable area – 17,733 sqm

 A property comprising a two level office and warehouse at 8 Stanton 
Road, Seven Hills, NSW
Lettable area – 10,708 sqm

An 8-storey building with a terrace area on level seven at 26-30 Lee 
St, Gateway Building, Sydney, NSW
Lettable area – 12,601 sqm

A property comprising an industrial facility with full vehicular access 
and a single level office at 10 Butu Wargun Drive, Greystanes, NSW 
Lettable area – 25,705 sqm

A six level office accommodation and a café at Nestle, Building B, 
Rhodes, NSW
Lettable area – 12,799 sqm

A commercial office building with five levels office accommodation 
at Nestle, Building D, Rhodes, NSW
Lettable area – 17,238 sqm

An eight level office building including a café at Tower A, 197-201 
Coward St, Mascot, NSW
Lettable area – 12,700 sqm

A property comprising a two level office accommodation, undercover 
parking and a warehouse at 10 Stanton Road, Seven Hills, NSW
Lettable area – 7,065 sqm

Book Value
$’000

 15,075 

 26,167 

 22,982 

 24,233 

 26,736 

 17,634 

 88,741 

 40,388 

 77,528 

 111,495 

 77,376 

 13,084 

239

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Australia (cont’d)

Australand Group’s 
Completed Investment 
Properties (cont’d)

A  property  comprising  a  single  level  office  component  and 
warehouse at 35 Huntingwood Drive, Huntingwood, NSW
Lettable area – 24,967 sqm

A  property  comprising  an 
distribution centre at 80 Hartley Road, Smeaton Grange, NSW
Lettable area – 61,281 sqm

industrial  office,  warehouse  and 

A  property  comprising  a  ground  floor  and  seven  upper  levels  of 
office accommodation at Tower B, 197-201 Coward St, Mascot, NSW
Lettable area – 10,253 sqm

Book Value
$’000

 41,156 

 69,684 

 50,065 

An office tower with retail, food and amenity at 2 Southbank Blvd, 
Southbank, VIC (50% interest)
Lettable area – 54,922 sqm

 233,229 

A  property  comprising  a  warehouse  with  two  level  office  at  63-71 
South Park Drive, Dandenong, VIC
Lettable area – 13,963 sqm

A  property  comprising  a  warehouse  and  office  at  47-59  Boundary 
Road, Carole Park, QLD
Lettable area – 13,260 sqm

A  property  comprising  a  single  level  office  and  temperature 
controlled warehouse at 22-28 Bam Wine Court, Dandenong South
Lettable area – 17,606 sqm

A  property  comprising  a  three  level  office  and  warehouse  at  2 
Wonderland Drive, Eastern Creek, NSW
Lettable area – 29,047 sqm

A  property  comprising  a  detached  two  level  office  building  and 
warehouse at 286 Queensport Road, Murarrie, QLD
Lettable area – 21,531 sqm

 15,359 

 14,221 

 21,389 

 54,534 

 31,272 

240

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED INV EST MEN T PRO P E R T I E S ( CO NT ’ D )

Book Value
$’000

Vietnam

Me Linh Point

China

Fraser Suites CBD 

Philippines

Fraser Place Forbes Tower

Europe

Capri Barcelona

A 22-storey retail/office building plus 2 basements at Me Linh Point 
Tower, 2 Ngo Duc Ke Street, District 1, Ho Chi Minh City
Leasehold (Lease expires year 2045), lettable area – 17,549 sqm

 50,423 

A building comprising residential apartments (3rd to 23rd level) and 
clubhouse (2nd level) at Fraser Suites CBD Beijing (EEL), 12 Jin Tong 
Xi  Road, Chaoyang District, Beijing
Leasehold :  Residential (Lease expires year 2073)
Clubhouse (Lease expires year 2043)

Lettable area – 28,448 sqm

 241,574 

89 serviced apartment units with 116 car park lots in the East Tower 
of Fraser Place Forbes Tower, Valero Street, Salcedo Village, Makati 
City, Manila
Freehold, lettable area – 17,046 sqm

 35,963 

97  serviced  apartments  at  Hotel  Apsis  Porta  Marina,  Sancho  de 
Avila, 32-34 08018 Barcelona, Spain
Freehold, lettable area – 3,626 sqm

Fraser Suites Kensington

69 residential apartments at Fraser Suites Kensington, 75 Stanhope 
Gardens London SW7 5RN
Freehold, lettable area – 6,845 sqm

Indonesia

Fraser Residence Sudirman 108 serviced apartment units in Fraser Tower of Fraser Residence 
Sudirman Jakarta, The Peak Sudirman Jakarta, Jl. Setiabudi Raya 
No. 9, Jakarta
Freehold, lettable area – 11,388 sqm

 25,372 

 224,491 

 42,511 

TOTAL COMPLETED INVESTMENT PROPERTIES

 5,551,514 

241

annual  report2014 
P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

INV ES TMENT  PR OPE RT IES UN DE R  C O NST RUCTI ON

Singapore

Waterway Point 

Cecil Street

Australia

Australand Group’s 
Investment Properties  
Under Construction 

A  mixed  commercial  and  residential  development  at  Punggol 
Central/Punggol Walk
331/3% proportionate share of commercial component
Leasehold (Lease expires year 2110), gross floor area of 50,398 sqm

Book Value
$’000

 260,668 

A commercial development at Cecil Street/ Telok Ayer Street
Leasehold (Lease expires year 2112), gross floor area of 77,162 sqm 

 974,291 

A  property  comprising  two  attached  warehouses  with  office 
accommodation at 2-34 Aylesbury Drive, Altona

A  property  comprising  two  attached  warehouses  with  office 
accommodation at 70 – 86 Atlantic Drive, Keysborough, VIC

A property comprising 3 adjacent warehouse facilities with internal 
offices at Cnr Sunline & Efficient Drives, Truganina, Derrimut, VIC

TOTAL INVESTMENT PROPERTIES UNDER CONSTRUCTION

TOTAL PROPERTIES (CLASSIFIED AS INVESTMENT PROPERTIES)

P ROPERTY ,  PLAN T  AND   EQ UIP MEN T

 7,243 

 12,056 

 16,559 

 1,270,817 

 6,822,331 

Book Value
$’000

Australia

Sofitel Wentworth Sydney

A 5-star hotel with 436 hotel rooms at 61-101 Philip Street, Sydney 
NSW 2000
Freehold, lettable area – 33,589 sqm

227,546

242

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED PR OPE RT IE S H EL D  FO R  S A L E 

Singapore

Soleil@Sinaran

Leasehold  land  of  approximately  12,468  sqm  situated  at  Sinaran 
Drive. The development has a gross floor area of 44,878 sqm and 
consists of 417 condominium units.

Esparina Residences

Leasehold  land  of  approximately  19,000  sqm  at  Compassvale 
Bow  for  the  development  of  573  executive  condominium  units  of 
approximately 56,643 sqm of gross floor area for sale.

Capri by Fraser

Holland Park

Flamingo Valley

Australia

Lumiere

Central Park

Fraser Suites Perth

Queens Riverside

Leasehold  land  of  approximately  7,517  sqm  situated  at  Changi 
Business Park. The development has a gross floor area of 18,975 
sqm and consists of 313 hotel rooms and 4 food & beverage outlets.

Freehold land of approximately 2,801 sqm at Holland Park for the 
development of 2 good class bungalows for sale.

Freehold land of approximately 31,164 sqm at Siglap Road for the 
development  of  393  condominium  units  of  approximately  43,629 
sqm of gross floor area for sale.

Freehold land of approximately 3,966 sqm situated at former Regent 
Theatre,  Frontages  on  George  Street,  Bathurst  &  Kent  Street, 
Sydney NSW. The development has a gross floor area of 61,146 sqm 
and consists of 1 retail podium, 456 residential units, 201 serviced 
apartments , 3 retail units and 19 commercial suites.

Freehold land of approximately 48,000 sqm situated at Broadway, 
Sydney  NSW  for  a  proposed  mixed  development  of  approximately 
2,519 residential apartment units of approximately 162,529 sqm of 
gross  floor  area  for  sale  and  commercial  space  of  approximately 
50,971 sqm of gross floor area for sale.

Freehold land of approximately 11,895 sqm situated at East Perth. 
The development has a gross floor area of 22,118 sqm and consists 
of 165 serviced apartments, 5 retail units and 6 commercial office 
units.

Freehold land of approximately 11,895 sqm situated at East Perth 
for  a  proposed  mixed  development  comprising  approximately  500 
private apartment units, 165 serviced apartments and commercial 
space of a total of approximately 64,854 sqm of gross floor area for 
sale.

Effective 
Group 
Interest 
%

100.0

80.0

50.0

100.0

100.0

80.5

37.5

87.5

87.5

243

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

COM PLETED PR OPE RT IE S H EL D  FO R  S A L E ( CO NT ’ D )

Australia (cont’d)

Putney Hill

Freehold  land  of  approximately  113,500  sqm  situated  at  Putney, 
Sydney NSW for a proposed development comprising 705 apartments 
and 86 houses of approximately 75,818 sqm of gross floor area for 
sale.

Australand Group’s 
Completed Properties  
Held for Sale

A  property  comprising  a  warehouse  and  two  level  office  at  20 
Thackray Road, Port Melbourne, VIC. The development has a gross 
floor area of 9,027 sqm.

Leasehold  land  of  approximately  7,111  sqm  situated  at  Xi  Cheng 
District,  Xin  Jie  Kou,  Beijing.  The  development  has  a  gross  floor 
area of 28,572 sqm and consists of retail units and offices.

Leasehold land of approximately 195,846 sqm situated at Chengdu. 
Phase  1  and  2  (Office)  of  the  development  has  a  gross  floor  area 
of  221,928  sqm  and  consists  of  299  offices,  27  warehouses  and  
766 car park lots.

Leasehold  land  of  approximately  314,501  sqm  situated  at  Gongye 
Yuan  District,  Nan  Shi  Jie  Dong,  Suzhou.  Phase  1a  and  1b  of  the 
development  has  a  gross  floor  area  of  132,520  sqm  and  consists 
of 968 apartment units. Phase 2a and 2b has a gross floor area of 
150,218 sqm and consists of 898 apartment units.

Freehold  land  of  approximately  40,608  sqm  situated  at  Rama  III 
Road, Bangkok. Phase 1 of the development has a gross floor area 
of 62,348 sqm and consists of 399 condominium units.

Freehold land of approximately 20,531 sqm situated at south bank 
of  River  Thames,  London.  Phase  3A  (One  and  Three  Riverside) 
comprises  121  private  apartments,  18  affordable  apartments  and 
12 commercial units.

China

Crosspoint

Chengdu Logistics Hub

Baitang One

Thailand

The Pano

United Kingdom

Wandsworth

244

Effective 
Group 
Interest 
%

75.0

100.0

100.0

80.0

100.0

49.0

80.0

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

DEV ELOPMENT  PRO PERT IES  H E LD  FOR  SA LE 

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

Singapore

Waterfront Isle 

Leasehold  land  (Lease  expires  year  2108)  of 
approximately 20,800 sqm at Bedok Reservoir 
Road  for  the  development  of  561  residential 
units and 2 retail units of approximately 52,491 
sqm of gross floor area for sale.

 81 

2nd Quarter 2015

50.0

Boathouse Residences Leasehold  land  (Lease  expires  year  2110)  of 
approximately 13,000 sqm at Upper Serangoon 
View  for  the  development  of  493  residential 
units  of  approximately  45,501  sqm  of  gross 
floor area for sale.

 89 

2nd Quarter 2015

50.0

Palm Isles

Seastrand

Watertown

eCO

Twin Waterfalls

Leasehold  land  (Lease  expires  year  2110)  of 
approximately  26,818  sqm  at  Flora  Drive  for 
the  development  of  429  residential  units  and 
1  retail  unit  of  approximately  40,323  sqm  of 
gross floor area for sale.

Leasehold  land  (Lease  expires  year  2110)  of 
approximately 20,000 sqm at Pasir Ris Link for 
the  development  of  473  residential  units  and 
2  retail  units  of  approximately  40,314  sqm  of 
gross floor area for sale.

Leasehold  land  (Lease  expires  year  2110)  of 
approximately 29,999 sqm at Punggol Central/ 
Punggol  Walk  for  a  mixed  commercial  and 
residential 
residential  development.  The 
component of the development comprises 992 
residential units of approximately 73,376 sqm 
of gross floor area for sale.

Leasehold  land  (Lease  expires  year  2111)  of 
approximately 62,096 sqm at Bedok South Ave 
3  for  the  development  of  714  condominium 
units,  34  units  of  strata  landed  houses  and 
2  retail  units  of  approximately  60,154  sqm  of 
gross floor area for sale.

Leasehold  land  (Lease  expires  year  2110) 
of  approximately  25,164  sqm  at  Punggol 
Walk  for  the  development  of  728  executive 
condominium  units  of  approximately  76,713 
sqm of gross floor area for sale.

 78 

3rd Quarter 2015

100.0

 94 

1st Quarter 2015

50.0

 27 

1st Quarter 2017

33.3

 32 

2nd Quarter 2016

33.3

 82 

2nd Quarter 2015

80.0

245

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

DEVELOPMEN T PR O PER TIES  HEL D FO R SA LE (CO NT’D )

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

Singapore (cont’d)

QBay Residences

Twin Fountains

Leasehold  land  (Lease  expires  year  2111)  of 
approximately 20,071 sqm at Tampines Ave 10 
for  the  development  of  630  residential  units 
and 2 retail units of approximately 56,516 sqm 
of gross floor area for sale.

Leasehold  land  (Lease  expires  year  2111) 
of  approximately  16,504  sqm  at  Woodlands 
Ave  6  (Woodlands  Planning  Area)  for  the 
development  of  418  executive  condominium 
units  of  approximately  45,769  sqm  of  gross 
floor area for sale.

RiverTrees Residences Leasehold  land  (Lease  expires  year  2112)  of 
approximately 14,931 sqm at Lot 4789X Mukim 
20  at  Fernvale  Close  for  the  development 
of  495  residential  units  and  1  retail  unit  of 
approximately 44,792 sqm of gross floor area 
for sale.

Australia

Queens Riverside

Freehold  land  of  approximately  11,895  sqm 
situated  at  East  Perth  for  a  proposed  mixed 
development 
approximately 
comprising 
500  private  apartment  units,  165  serviced 
apartments and commercial space of a total of 
approximately 64,854 sqm of gross floor area 
for sale.
 – Q I
 – Q II

Frasers Landing

Freehold  land  of  approximately  550,000  sqm 
situated at Mandurah, Western Australia for a 
proposed residential development.

Freehold 
land  of  approximately  10,000 
sqm  situated  at  Broadway,  Sydney  NSW 
for  a  proposed  mixed  development  of 
approximately  524  residential  apartment 
units  of  approximately  32,203  sqm  of  gross 
floor  area  for  sale  and  commercial  space  of 
approximately  5,200  sqm  of  gross  floor  area 
for sale.

Central Park  
(CUB Site)

246

 48 

3rd Quarter 2016

33.3

 46 

2nd Quarter 2016

70.0

 6 

2nd Quarter 2017

40.0

 15 
 82 

1st Quarter 2016
2nd Quarter 2015

 –   

3rd Quarter 2023

87.5
87.5

56.3

 –    4th  Quarter 2018

75.0

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

DEVELOPMEN T PR O PER TIES  HEL D FO R SA LE (CO NT’D )

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

Australia (cont’d)

Putney Hill

Freehold  land  of  approximately  113,500  sqm 
situated at Putney, Sydney NSW for a proposed 
development comprising 665 apartments and 
126  houses  over  phases  of  approximately 
75,818 sqm of gross floor area for sale.
 – Houses
 – Apartments

Port Coogee

A  residential  development  of  2,000 
lots 
consisting of 800 land lots and 1,200 medium 
density townhouses and apartments.

 58 
 22 

2nd Quarter 2017
3rd Quarter 2018

75.0
75.0

 38 

1st Quarter 2023

100.0

Discovery Point Share 
Works

A development of 1,850 apartments comprising 
a series of 17 buildings.

 1 

4th Quarter 2018

100.0

Jandakot – Cockburn  
Central

development 

A 
apartments.

of 

approximately 

800 

 36 

1st Quarter 2020

100.0

Ashlar Golf Course

A  residential  development  of  approximately 
780 medium density dwellings.

 –   

1st Quarter 2021

100.0

Caloundra  
– Ivadale Lakes

Springfield  
– The Springs

Cova  
– Hope Island

Yungabah

Northshore  
– Hamilton

Casiana Grove 865 
Frank Road

A development comprising 650 land lots.

 83 

3rd Quarter 2015

100.0

A development comprising 275 land lots.

 74 

1st Quarter 2015

100.0

A  development  comprising  a  yield  of 
approximately 570 dwellings, split between 220 
land lots and 350 medium density dwellings.

 20 

3rd Quarter 2021

100.0

A  development  comprising  165  apartments 
and 10 residential houses.

 41 

4th Quarter 2016

100.0

development 

A 
apartments and terrace homes.

of 

approximately 

660 

 15 

1st Quarter 2020

100.0

A development comprising 680 land lots.

 74 

1st Quarter 2016

100.0

Lidcombe Village Civil A development comprising 230 dwellings.

 64 

4th Quarter 2016

100.0

Greenvale

A development comprising 660 land lots.

 48 

1st Quarter 2017

100.0

247

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

DEVELOPMEN T  PR OP ERT IES H E LD  FO R SA LE (CO NT’D )

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

Australia (cont’d)

Clemton Park

A residential development.

 21 

1st Quarter 2017

Discovery Point Co

A development of 1,850 apartments comprising 
a series of 17 buildings.

 –   

4th Quarter 2016

East Baldivis

A residential development.

 –   

3rd Quarter 2021

Lincoln Health Co

A development comprising 600 land lots.

 –   

1st Quarter 2020

The Range at Croydon A residential development.

 80 

4th Quarter 2015

Sunshine

A residential development.

 82 

3rd Quarter 2016

A residential development.

 25 

1st Quarter 2015

50.0

50.0

50.0

50.0

50.0

50.0

50.0

Leasehold  land  (Lease  expires  year  2057) 
of  approximately  195,846  sqm  situated  at 
Chengdu for a proposed industrial/commercial 
development  of  a  total  of  approximately 
542,638 sqm of gross floor area for sale, which 
is separated into Phase 1 of 161,288 sqm and 
Phase 2 to 4 of 381,350 sqm.  Phase 1 and 2 
(Office)  of  the  development  were  completed. 
Phase 3 was sold in September 2012.
– Phase 2a – Office
– Phase 4 – Office

Leasehold  land  (Lease  expires  year  2074)  of 
approximately 314,501 sqm situated at Gongye 
Yuan  district,  Nan  Shi  Jie  Dong,  Suzhou 
for  a  residential  development  of  a  total  of 
approximately 543,700 sqm of gross floor area 
for  sale,  which  is  separated  into  Phase  1a 
and 1b of 132,520 sqm and Phase 2a to 3d of 
410,785 sqm.  Phase 1a, 1b, 2a and 2b of the 
development were completed.  
– Baitang One (Phase 3a)
– Baitang One (Phase 3b)
– Baitang One (Phase 3c)

 –   
–

2nd Quarter 2017 
4th Quarter 2015

80.0
80.0

 –   
 –   
 –   

4th Quarter 2015
4th Quarter 2017
4th Quarter 2016

100.0
100.0
100.0

Wallan

China

Chengdu Logistics 
Hub

Baitang One

248

Frasers centrepoint limited & subsidiariesP A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

DEV ELOPMEN T PR O PER TIES  HEL D FO R SA LE (CO NT’D)

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

New Zealand

Broadview

Coast @ Papamoa

United Kingdom

Wandsworth Riverside 
Quarter

Freehold  land  of  approximately  13,275  sqm 
situated  at  South  Island,  Queenstown  for  a 
proposed development of 43 luxury residential 
apartments  of  approximately  8,410  sqm  of 
gross floor area for sale.

Freehold 
land  of  approximately  271,168 
sqm  situated  at  Tauranga,  North  Island  for  a 
proposed  development  of  approximately  303 
land lots of approximately 139,906 sqm of lot 
area for sale.

Freehold  land  of  approximately  20,531  sqm 
situated  at  south  bank  of  River  Thames, 
London 
for  a  proposed  residential  and 
commercial  development  of  512  residential 
units  and  ancillary  office  and  retail  space 
of  a  total  of  approximately  32,236  sqm  of 
gross  floor  area  for  sale  for  Phase  3  of  the 
Wandsworth Riverside Development.

Vauxhall Sky Garolens Freehold  land  of  approximately  1,700  sqm 
situated  at  Vauxhall,  London.  The  36  storey 
tower  development  has  a  gross  floor  area  of 
approximately 21,000 sqm and consists of 198 
private apartments, 41 affordable, with offices 
and ground floor commercial.

Camberwell Green 
Project

Freehold  land  of  approximately  2,310  sqm 
situated at 1 – 6 Camberwell Green and 307 – 
311 Camberwell New Road SE5, London.

Brown Street Project

Freehold  land  of  approximately  3,157  sqm 
situated at Brown Street, Glasgow.

Baildon Project

Freehold  land  of  approximately  5,870  sqm 
situated at Baildon.

 –   

4th Quarter 2016

75.0

 –   

1st Quarter 2017

67.5

 –   

3rd Quarter 2016

80.0

 –   

3rd Quarter 2016

80.0

 –   

 –   

 –   

–

–

–

80.0

80.0

80.0

249

annual  report2014P A R T I C U L A R S   O F   G R O U P   P R O P E R T I E S

A S   A T   3 0   S E P T E M B E R   2 0 1 4

D EV ELOPMENT PR OP ERT IES H E LD  FO R  SAL E ( CO NT ’ D )

Stage of 
Completion 
%

Estimated
Date of 
Completion

Effective 
Group 
Interest 
%

Thailand

The Pano

Peninsular Malaysia

Dataran Fraser
“Fraser Square”

Freehold  land  of  approximately  40,608  sqm 
situated  at  Rama  III  Road,  Bangkok,  which 
is  separated  into  Phase  1  of  14,062  sqm  and 
Phase 2 and 3 of 26,546 sqm.  Phase 1 of the 
development was completed.

Leasehold  land  (Lease  expires  year  2069) 
of  approximately  51,491  sqm  situated  at 
Petaling Jaya, Selangor for a proposed mixed 
development  with  a  total  of  approximately 
179,916 sqm of gross floor area for sale.
–  Phase  1a  –  Serviced  Apartment  &  Street 

Retail

– Phase 1b – SOHO
– Phase 2 – Boutique Office & Shopping Mall
– Phase 3 – Corporate Tower
– Phase 4 – Business Hotel

 –   

–

49.0

 –   

4th Quarter 2018

 –   
 –   
 –   
 –   

2nd Quarter 2019
2nd Quarter 2020
4th Quarter 2019
1st Quarter 2020

50.0

50.0
50.0
50.0
50.0

250

Frasers centrepoint limited & subsidiariesI N T E R E S T E D   P E R S O N   T R A N S A C T I O N S

Particulars of interested person transactions ("IPTs") for the period 9 January 2014 to 30 September 2014 as required 
under Rule 907 of the SGX Listing Manual.

Aggregate value of 
all Interested Person 
Transactions ("IPT") 
during the financial period 
under review (excluding 
transactions less than 
$100,000 and transactions 
conducted under 
Shareholders' Mandate 
pursuant to Rule 920)
$'000

Aggregate value of 
all Interested Person 
Transactions ("IPT") 
conducted during the financial 
period under review under 
Shareholders' Mandate 
pursuant to Rule 920 
(excluding transactions less 
than $100,000)
$'000

 10,257 

 250,000 
 652 
 Nil 

 1,000 

 Nil 

 Nil 
 136,133 
 15,392 

 Nil 

Name of interested person

TCC Group of Companies(1)
– Acquisition of entities
– TCC Prosperity Limited:  

Placement of perpetual capital securities

– Sale of goods and services
– Extension of loans

Lim Ee Seng, Group Chief Executive Officer
–  Placement of perpetual capital securities

Note:

(1)  This refers to the companies and entities in the TCC Group, which are controlled by Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi.

M ATERI AL C ONT RACTS (R UL E  12 07(8 )  OF   THE  SGX LI STI NG  M A NUAL ) 

There were no material contracts entered into by the Company or any of its subsidiaries involving the interests of 
any director or controlling shareholder of the Company during the financial period under review, same as disclosed 
above and in this Annual Report.

251

annual  report2014 
S H A R E H O L D I N G   S T A T I S T I C S

A S   A T   1 2   D E C E M B E R   2 0 1 4

Class of Shares  
Voting Rights  

– 
– 

Ordinary shares
One vote per share

DIS TRIBUTION  O F SH AR EH OLDE R S  B Y   SI ZE  OF SH A RE HOL DI NG S

Size of Holding

– 999 

1  
1,000   –  10,000 
10,001   –  1,000,000 
1,000,001  and above 
TOTAL

No. of 
Shareholders

%

No. of Shares

%

 200 
 4,430 
 2,213 
 24 
 6,867 

2.91
64.51
32.23
0.35
100.00

 58,963 
 21,473,896 
 126,871,285 
 2,741,408,428 
 2,889,812,572 

0.00
0.74
4.39
94.87
100.00

TWENT Y L ARGE S T  S HA REH O LDER S ( AS  SH OW N I N THE R EGI STER OF M EMB ERS A ND D EPOSI TORY 
R EGIS TER)

No.

Shareholder's Name

DBS Nominees Pte Ltd          
United Overseas Bank Nominees Pte Ltd
InterBev Investment Limited   
Citibank Nominees Singapore Pte Ltd  
BNP Paribas Nominees Singapore Pte Ltd    
DBS Vickers Securities (Singapore) Pte Ltd  
HSBC (Singapore) Nominees Pte Ltd 
Raffles Nominees (Pte) Ltd    
UOB Kay Hian Pte Ltd          
DBSN Services Pte Ltd         
Lee Seng Tee                  
Phay Thong Huat Pte Ltd       
CIMB Securities (Singapore) Pte Ltd
DB Nominees (Singapore) Pte Ltd       
The Titular Roman Catholic Archbishop Of Kuala Lumpur        
OCBC Securities Private Ltd   
Maybank Kim Eng Securities Pte Ltd  
Choo Meileen                  
Chee Swee Cheng & Co Pte Ltd  
Bank of Singapore Nominees Pte Ltd
TOTAL

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Note:

No. of 
Shares Held

872,629,615 
860,975,154 
824,847,644 
64,006,367 
24,148,230 
20,651,020 
14,140,196 
13,469,681 
10,812,620 
6,413,292 
5,000,000 
3,598,000 
2,938,553 
2,667,810 
2,013,440 
1,933,240 
1,830,844 
1,812,130 
1,693,220 
1,385,172 
2,736,966,228 

%*

30.20
29.79
28.54
2.21
0.84
0.71
0.49
0.47
0.37
0.22
0.17
0.12
0.10
0.09
0.07
0.07
0.06
0.06
0.06
0.05
94.69

* 

Percentage is based on 2,889,812,572 shares as at 12 December 2014. There are no Treasury Shares as at 12 December 2014.

252

Frasers centrepoint limited & subsidiaries 
S H A R E H O L D I N G   S T A T I S T I C S

A S   A T   1 2   D E C E M B E R   2 0 1 4

SUBSTANTIAL  SH ARE HO LDE RS  ( AS  S HOWN I N THE REGI STER OF  SUB STA NTIA L S HA REHO LDERS)

TCC Assets Limited
InterBev Investment Limited
International Beverage Holdings Limited (1)
Thai Beverage Public Company Limited (2)
Siriwana Company Limited (3)
MM Group Limited (4)
Maxtop Management Corp. (4)
Risen Mark Enterprise Ltd. (4)
Golden Capital (Singapore) Limited (4)
Charoen Sirivadhanabhakdi (5)
Khunying Wanna Sirivadhanabhakdi (5)

Direct Interest

Deemed Interest

No. of Shares

%*

No. of Shares

%*

1,716,160,124 
824,847,644 
–
–
–
–
–
–
–
–
–

59.39
28.54
–
–
–
–
–
–
–
–
–

–
–
824,847,644 
824,847,644 
824,847,644 
824,847,644 
824,847,644 
824,847,644 
824,847,644 
2,541,007,768 
2,541,007,768 

–
–
28.54
28.54
28.54
28.54
28.54
28.54
28.54
87.93
87.93

To the best of the Company’s knowledge and based on records of the Company as at 12 December 2014, approximately 
12%* of the issued shares of the Company are held in the hands of the public and this complies with Rule 723 of the 
Listing Manual.

Notes:

* 

Percentage is based on 2,889,812,572 shares as at 12 December 2014. There are no Treasury Shares as at 12 December 2014.

(1) 

International Beverage Holdings Limited (“IBHL”) holds a 100% direct interest in InterBev Investment Limited (“IBIL”) and is therefore deemed to be 
interested in all of the shares of Frasers Centrepoint Limited (“FCL”) in which IBIL has an interest.

(2)  Thai Beverage Public Company Limited (“ThaiBev”) holds a 100% direct interest in IBHL, which in turn holds a 100% direct interest in IBIL. ThaiBev is 

therefore deemed to be interested in all of the shares of FCL in which IBIL has an interest.

(3)  Siriwana Company Limited holds an approximately 45.27% direct interest in ThaiBev;

- 
- 

ThaiBev holds a 100% direct interest in IBHL; and
IBHL holds a 100% direct interest in IBIL.

Siriwana Company Limited is therefore deemed to be interested in all of the shares of FCL in which IBIL has an interest.

(4)  MM Group Limited (“MM Group”) holds a 100% direct interest in each of Maxtop Management Corp. (“Maxtop”), Risen Mark Enterprise Ltd. (“RM”) and 

Golden Capital (Singapore) Limited (“GC”);

-  Maxtop holds a 17.23% direct interest in ThaiBev;
-  RM holds a 3.32% direct interest in ThaiBev;  
-  GC holds a 0.06% direct interest in ThaiBev;
- 
- 

ThaiBev holds a 100% direct interest in IBHL; and
IBHL holds a 100% direct interest in IBIL.

MM Group is therefore deemed to be interested in all of the shares of FCL in which IBIL has an interest. 

(5)  Each of Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakdi, owns 50% of the issued and paid-up share capital of TCC Assets 

Limited (“TCCA”), and is therefore deemed to be interested in all of the shares of FCL in which TCCA has an interest.

Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold:

- 
- 

a 51% direct interest in Siriwana Company Limited, which in turn holds an approximate 45.27% direct interest in ThaiBev; and 
 a 100% direct interest in MM Group. MM Group holds a 100% direct interest in each of Maxtop, RM and GC. Maxtop holds a 17.23% direct interest in 
ThaiBev; RM holds a 3.32% direct interest in ThaiBev; and GC holds a 0.06% direct interest in ThaiBev.

ThaiBev holds a 100% direct interest in IBHL, which in turn holds a 100% direct interest in IBIL. Each of Charoen Sirivadhanabhakdi and Khunying Wanna 
Sirivadhanabhakdi is therefore deemed to be interested in all of the shares of FCL in which IBIL has an interest.

253

annual  report2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N O T I C E   O F   A N N U A L   G E N E R A L   M E E T I N G

The admission and listing of Frasers Centrepoint Limited on the Singapore Exchange Securities Trading Limited was 
sponsored by DBS Bank Ltd. as the Sole Issue Manager. DBS Bank Ltd., United Overseas Bank Limited and Morgan 
Stanley Asia (Singapore) Pte. were the Joint Financial Advisers for the listing of Frasers Centrepoint Limited. DBS 
Bank Ltd., United Overseas Bank Limited and Morgan Stanley Asia (Singapore) Pte. assume no responsibility for the 
contents of this Notice.

FRASERS CENTREPOINT LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration No. 196300440G)

NOTICE OF ANNUAL GENERAL MEETING
:  Friday, 30 January 2015
Date 
:  Ballrooms II and III, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966
Place 

NOTICE IS HEREBY GIVEN that the 51st Annual General Meeting of FRASERS CENTREPOINT LIMITED (the “Company”) 
will be held at Ballrooms II and III, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966 on Friday, 
30 January 2015 at 2.00 p.m. for the following purposes:

ROUTI NE BUS INE SS  

(1) 

(2) 

(3) 

To  receive  and  adopt  the  report  of  the  Directors  and  audited  financial  statements  for  the  year  ended  30 
September 2014 and the auditors’ report thereon.

To  approve  a  final  tax-exempt  (one-tier)  dividend  of  6.2  cents  per  share  in  respect  of  the  year  ended  30 
September 2014. 

To pass the following resolutions on the recommendation of the Nominating Committee and endorsement of 
the Board of Directors in respect of appointment of Directors1:

(a) 

“That pursuant to Section 153(6) of the Companies Act, Cap. 50, Mr Charoen Sirivadhanabhakdi be and 
is hereby re-appointed as a Director of the Company, to hold office from the date of this Annual General 
Meeting until the next Annual General Meeting of the Company.”

Subject to his re-appointment, Mr Charoen will be re-appointed as Chairman of the Board of Directors 
and Chairman of the Board Executive Committee. 

(b) 

“That pursuant to Section 153(6) of the Companies Act, Cap. 50, Khunying Wanna Sirivadhanabhakdi 
be and is hereby re-appointed as a Director of the Company, to hold office from the date of this Annual 
General Meeting until the next Annual General Meeting of the Company.”

Subject to her re-appointment, Khunying Wanna will be re-appointed as Vice Chairman of the Board of 
Directors.

(c) 

“That Mr Wee Joo Yeow, who will cease to hold office pursuant to Article 97 of the Articles of Association 
of  the  Company  and  who,  being  eligible,  has  offered  himself  for  re-election,  be  and  is  hereby  
re-appointed as a Director of the Company.” 

Subject to his re-appointment, Mr Wee, who is considered an independent Director, will be re-appointed 
as a Member of the Board Executive Committee and a Member of the Audit Committee.

1  Detailed information on the Directors who are proposed to be re-appointed can be found under “Board of Directors” and “Corporate Governance” in the 

Company’s Annual Report 2014. 

254

Frasers centrepoint limited & subsidiaries 
 
 
 
N O T I C E   O F   A N N U A L   G E N E R A L   M E E T I N G

(d) 

“That Mr Charles Mak Ming Ying, who will retire by rotation pursuant to Article 91 of the Articles of 
Association  of  the  Company  and  who,  being  eligible,  has  offered  himself  for  re-election,  be  and  is 
hereby re-appointed as a Director of the Company.”

Subject to his re-appointment, Mr Mak, who is considered an independent Director, will be re-appointed 
as Vice Chairman of the Board Executive Committee, Chairman of the Audit Committee, a Member of 
the Risk Management Committee and a Member of the Remuneration Committee. 

(e) 

“That  Mr  Philip  Eng  Heng  Nee,  who  will  retire  by  rotation  pursuant  to  Article  91  of  the  Articles  of 
Association  of  the  Company  and  who,  being  eligible,  has  offered  himself  for  re-election,  be  and  is 
hereby re-appointed as a Director of the Company.”

Subject to his re-appointment, Mr Eng, who is considered an independent Director, will be re-appointed 
as Chairman of the Remuneration Committee and a Member of the Audit Committee. 

(f) 

“That Mr Weerawong Chittmittrapap, who will retire by rotation pursuant to Article 91 of the Articles 
of Association of the Company and who, being eligible, has offered himself for re-election, be and is 
hereby re-appointed as a Director of the Company.”

Subject  to  his  re-appointment,  Mr  Chittmittrapap,  who  is  considered  an  independent  Director,  will 
be re-appointed as Chairman of the Nominating Committee and a Member of the Risk Management 
Committee. 

(4) 

(5) 

To approve Directors’ fees of up to S$2,000,000 payable by the Company for the year ending 30 September 
2015 (last year: up to S$1,453,000).

To re-appoint Ernst & Young LLP as the Company’s auditors for the ensuing year and to authorise the Directors 
to fix their remuneration.

SPECI AL BUSINESS

To consider and, if thought fit, to pass the following Ordinary Resolutions, with or without any modifications:

(6) 

“That authority be and is hereby given to the Directors of the Company to:

(a) 

(i) 

 issue  shares  in  the  capital  of  the  Company  (“shares”)  whether  by  way  of  rights,  bonus  or 
otherwise; and/or

(ii) 

 make or grant offers, agreements or options (collectively, “Instruments”) that might or would 
require shares to be issued, including but not limited to the creation and issue of (as well as 
adjustments to) warrants, debentures or other instruments convertible into shares,

at any time and upon such terms and conditions and for such purposes and to such persons as the 
Directors may in their absolute discretion deem fit; and 

(b) 

(notwithstanding  the  authority  conferred  by  this  Resolution  may  have  ceased  to  be  in  force)  issue 
shares in pursuance of any Instrument made or granted by the Directors while this Resolution was in 
force, 

255

annual  report2014 
 
 
 
 
N O T I C E   O F   A N N U A L   G E N E R A L   M E E T I N G

provided that:

(1) 

the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued 
in pursuance of Instruments made or granted pursuant to this Resolution) does not exceed 50% of the 
total number of issued shares in the capital of the Company, excluding treasury shares (as calculated in 
accordance with sub-paragraph (2) below), of which the aggregate number of shares to be issued other 
than on a pro rata basis to shareholders of the Company (including shares to be issued in pursuance 
of Instruments made or granted pursuant to this Resolution) shall not exceed 20% of the total number 
of issued shares in the capital of the Company, excluding treasury shares (as calculated in accordance 
with sub-paragraph (2) below); 

(2) 

(subject  to  such  manner  of  calculation  as  may  be  prescribed  by  the  Singapore  Exchange  Securities 
Trading Limited (“SGX-ST”)) for the purpose of determining the aggregate number of shares that may 
be issued under sub-paragraph (1) above, the percentage of issued shares shall be based on the total 
number  of  issued  shares  in  the  capital  of  the  Company,  excluding  treasury  shares,  at  the  time  this 
Resolution is passed, after adjusting for:

(i) 

new shares arising from the conversion or exercise of any convertible securities or share options or 
vesting of share awards which are outstanding or subsisting at the time this Resolution is passed; 
and

(ii)  any subsequent bonus issue, consolidation or subdivision of shares; 

(3) 

(4) 

in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of 
the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by 
the SGX-ST) and the Articles of Association for the time being of the Company; and

(unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution 
shall continue in force until the conclusion of the next Annual General Meeting of the Company or the 
date by which the next Annual General Meeting of the Company is required by law to be held, whichever 
is the earlier.”

(7) 

“That approval be and is hereby given to the Directors of the Company to:

(a) 

(b) 

grant  awards  in  accordance  with  the  provisions  of  the  FCL  Restricted  Share  Plan  (the  “Restricted 
Share Plan”) and/or the FCL Performance Share Plan (the “Performance Share Plan”); and 

allot and issue such number of ordinary shares in the capital of the Company as may be required to be 
delivered pursuant to the vesting of awards under the Restricted Share Plan and/or the Performance 
Share Plan, 

provided  that  the  aggregate  number  of  new  ordinary  shares  allotted  and  issued  and/or  to  be  allotted  and 
issued, when aggregated with existing ordinary shares in the capital of the Company (including shares held 
in  treasury)  delivered  and/or  to  be  delivered,  pursuant  to  the  Restricted  Share  Plan  and  the  Performance 
Share Plan, shall not exceed 10% of the total number of issued ordinary shares in the capital of the Company, 
excluding treasury shares, from time to time.”

256

Frasers centrepoint limited & subsidiaries 
N O T I C E   O F   A N N U A L   G E N E R A L   M E E T I N G

(8) 

“That:

(a) 

approval be and is hereby given, for the purposes of Chapter 9 of the Listing Manual (“Chapter 9”) of 
the Singapore Exchange Securities Trading Limited, for the Company, its subsidiaries and associated 
companies that are considered to be “entities at risk” (as that term is used in Chapter 9), or any of them, 
to enter into any of the transactions falling within the types of Mandated Transactions (as described in 
Appendix A to the Letter to Shareholders dated 9 January 2015 (the “Letter to Shareholders”)), with 
any party who is of the class of Mandated Interested Persons described in Appendix A to the Letter to 
Shareholders,  provided  that  such  transactions  are  carried  out  on  normal  commercial  terms  and  in 
accordance with the review procedures for Mandated Transactions (the “IPT Mandate”);  

(b) 

(c) 

the IPT Mandate shall, unless revoked or varied by the Company in general meeting, continue in force 
until the conclusion of the next Annual General Meeting of the Company; and

the  Company  and  any  Director  of  the  Company  be  and  is  hereby  severally  authorised  to  complete 
and do all such acts and things (including executing all such documents as may be required) as the 
Company or, as the case may be, such Director of the Company may consider expedient or necessary 
or in the interests of the Company to give effect to this Resolution.”

OTH ER  BUS INESS

(9) 

To transact any other business which may properly be brought forward.

By Order of the Board
Piya Treruangrachada
Company Secretary

Singapore, 9 January 2015

A member of the Company entitled to attend the meeting and vote is entitled to appoint not more than two proxies 
to attend and vote instead of him; a proxy need not be a member of the Company. Where a member of the Company 
appoints more than one proxy, he shall specify the proportion of his shareholdings to be represented by each proxy. 
The instrument appointing a proxy or proxies (a form is enclosed) must be deposited with the Company Secretary at 
the registered office not less than 48 hours before the time appointed for holding the meeting.

257

annual  report2014N O T I C E   O F   A N N U A L   G E N E R A L   M E E T I N G

Explanatory Notes:

(a)  The Ordinary Resolution proposed in item (6) above is to authorise the Directors of the Company from the date 
of  the  Annual  General  Meeting  until  the  next  Annual  General  Meeting  to  issue  shares  and/or  make  or  grant 
instruments that might require shares to be issued, and to issue shares in pursuance of such instruments, up 
to a limit of 50% of the total number of issued shares in the capital of the Company, excluding treasury shares, 
with a sub-limit of 20% for issues other than on a pro rata basis, calculated as described in the Resolution.  

(b)  The Ordinary Resolution proposed in item (7) above is to authorise the Directors of the Company to offer and 
grant awards and to issue ordinary shares in the capital of the Company pursuant to the FCL Restricted Share 
Plan  (the  “Restricted  Share  Plan”)  and  the  FCL  Performance  Share  Plan  (the  “Performance  Share  Plan”) 
provided that the aggregate number of new ordinary shares allotted and issued and/or to be allotted and issued, 
when aggregated with existing ordinary shares in the capital of the Company (including shares held in treasury) 
delivered and/or to be delivered, pursuant to the Restricted Share Plan and the Performance Share Plan, shall 
not exceed 10% of the total number of issued ordinary shares in the capital of the Company, excluding treasury 
shares, from time to time. 

(c)  The  Ordinary  Resolution  proposed  in  item  (8)  above  is  to  renew  the  mandate  to  enable  the  Company,  its 
subsidiaries and associated companies that are considered to be “entities at risk” under Chapter 9 of the Listing 
Manual, or any of them, to enter into certain interested person transactions with specified classes of interested 
persons, as described in the Letter to Shareholders dated 9 January 2015. Please refer to the Letter for more 
details.

Personal data privacy:

By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual 
General Meeting (“AGM”) and/or any adjournment thereof, a member of the Company (i) consents to the collection, 
use and disclosure of the member’s personal data by the Company (or its agents) for the purpose of the processing 
and administration by the Company (or its agents) of proxies and representatives appointed for the AGM (including 
any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and other documents 
relating  to  the  AGM  (including  any  adjournment  thereof),  and  in  order  for  the  Company  (or  its  agents)  to  comply 
with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), and (ii) warrants 
that  where  the  member  discloses  the  personal  data  of  the  member’s  proxy(ies)  and/or  representative(s)  to  the 
Company  (or  its  agents),  the  member  has  obtained  the  prior  consent  of  such  proxy(ies)  and/or  representative(s) 
for the collection, use and disclosure by the Company (or its agents) of the personal data of such proxy(ies) and/or 
representative(s) for the Purposes.

258

Frasers centrepoint limited & subsidiariesFRA SERS CENTR EPOI NT LIM IT E D
(Company Registration No. 196300440G)
(Incorporated in Singapore)

P R O X Y   F O R M
A N N U A L   G E N E R A L   M E E T I N G

IMPORTANT
CPF Investors 
1.  For investors who have used their CPF monies to buy Frasers Centrepoint Limited 
shares, the Annual Report 2014 is forwarded to them at the request of their CPF 
Approved Nominees and is sent FOR INFORMATION ONLY.

2.  This Proxy Form is not valid for use by CPF investors and shall be ineffective for all 

intents and purposes if used, or purported to be used, by them.

3.  CPF investors who wish to attend the Annual General Meeting as OBSERVERS have 
to submit their requests through their respective Agent Banks so that their Agent 
Banks may register, in the required format, with the Company Secretary, Frasers 
Centrepoint Limited. (Agent Banks: Please see Note 8 on the required format.)

Personal Data Privacy
By  submitting  an  instrument  appointing  a  proxy(ies)  and/or  representative(s),  the 
member accepts and agrees to the personal data privacy terms set out in the Notice of 
Annual General Meeting dated 9 January 2015. 

I/We              __________________________________________ (Name)        _________________________ (NRIC/Passport Number) 

of  _________________________________________________________________________________________  (Address)

being a member/members of Frasers Centrepoint Limited (the “Company”), hereby appoint:

Name

Address

NRIC/Passport Number

No. of Shares

%

Proportion of
Shareholdings (Note 2)

and/or (delete as appropriate)

Name

Address

NRIC/Passport Number

No. of Shares

%

Proportion of
Shareholdings (Note 2)

or failing him/them, the Chairman of the Annual General Meeting (the “AGM”), as my/our proxy/proxies to attend and to 
vote for me/us on my/our behalf and, if necessary, to demand a poll, at the AGM of the Company to be held at 2.00 p.m.  
on Friday, 30 January 2015 at Ballroom II and III, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966, 
and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions to be proposed at 
the AGM as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies may vote or abstain from 
voting at his/their discretion, as he/they may on any other matter arising at the AGM.

NOTE:  The Chairman of the AGM will be exercising his right under Article 61(B)(a) of the Articles of Association of the Company to demand a poll in respect 
of the resolutions to be put to the vote at the AGM and at any adjournment thereof. Accordingly, such resolutions at the AGM will be voted on by 
way of a poll.

No. of Votes 
For*

No. of Votes 
Against*

NO. RESOLUTIONS RELATING TO:

To re-appoint Director: Mr Charoen Sirivadhanabhakdi
To re-appoint Director: Khunying Wanna Sirivadhanabhakdi 
To re-appoint Director: Mr Wee Joo Yeow
To re-appoint Director: Mr Charles Mak Ming Ying
To re-appoint Director: Mr Philip Eng Heng Nee
To re-appoint Director: Mr Weerawong Chittmittrapap

ROUTINE BUSINESS
To receive and adopt the report of the Directors and audited financial statements for 
the year ended 30 September 2014 and the auditors’ report thereon. 
To approve a final tax-exempt (one-tier) dividend of 6.2 cents per share in respect of 
the year ended 30 September 2014.
(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
To approve Directors’ fees of up to S$2,000,000 payable by the Company for the year 
ending 30 September 2015 (last year: up to S$1,453,000).
To re-appoint Ernst & Young LLP as the Company’s auditors for the ensuing year and 
to authorise the Directors to fix their remuneration.
SPECIAL BUSINESS
To authorise Directors to issue shares and to make or grant convertible instruments.
To authorise Directors to grant awards and to allot and issue shares pursuant to the 
FCL Restricted Share Plan and/or the FCL Performance Share Plan.
To approve the proposed renewal of the mandate for interested person transactions.
OTHER BUSINESS
To transact any other business which may properly be brought forward.

1.

2.

3.

4.

5.

6.
7.

8.

9.

* 

If you wish to exercise all your votes “For” or “Against” the relevant resolution, please tick (ü) within the relevant box provided. Alternatively, if you wish 
to exercise your votes both “For” and “Against” the relevant resolution, please indicate the number of Shares in the boxes provided.

Dated this ______ day of ____________________ 2015. 

Total Number of 
Shares held (Note 4)

Signature(s) of Member(s) or Common Seal

IMPORTANT: PLEASE READ NOTES OVERLEAF

fold and seal here

NOTES TO PROXY FORM:

1.  A member of the Company entitled to attend the meeting and vote is entitled to appoint one or two proxies to attend and vote instead of him. A proxy need not 
be a member of the Company. The instrument appointing a proxy or proxies must be deposited with the Company Secretary at the registered office not less 
than 48 hours before the time appointed for holding the meeting.

2.  Where a member appoints more than one proxy, the appointments shall be invalid unless he specifies the proportion of his shareholding (expressed as a 

percentage of the whole) to be represented by each proxy.

3.  Completion and return of this instrument appointing a proxy or proxies shall not preclude a member from attending and voting at the meeting. Any appointment 
of a proxy or proxies shall be deemed to be revoked if a member attends the meeting in person, and in such event, the Company reserves the right to refuse 
to admit any person or persons appointed under this instrument of proxy, to the meeting.

4. 

If the member has shares entered against his name in the Depository Register (as defined in Section 130A of the Companies Act, Cap. 50 of Singapore), he 
should insert that number of shares. If the member has shares registered in his name in the Register of Members of the Company, he should insert that 
number of shares. If the member has shares entered against his name in the Depository Register and registered in his name in the Register of Members of the 
Company, he should insert the number of shares entered against his name in the Depository Register and registered in his name in the Register of Members. 
If no number is inserted, this form of proxy will be deemed to relate to all shares held by the member.

5.  The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument 
appointing a proxy or proxies is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly 
authorised officer.

6.  Where an instrument appointing a proxy or proxies is signed on behalf of the appointor by an attorney, the letter or power of attorney or a duly certified copy 

thereof must (failing previous registration with the Company) be lodged with the instrument of proxy, failing which the instrument may be treated as invalid.

7.  The Company shall be entitled to reject a Proxy Form which is incomplete, improperly completed, illegible or where the true intentions of the appointor are 
not ascertainable from the instructions of the appointor specified on and/or attached to the Proxy Form. In addition, in the case of a member whose shares are 
entered in the Depository Register, the Company may reject a Proxy Form if the member, being the appointor, is not shown to have shares entered against his 
name in the Depository Register as at 48 hours before the time appointed for holding the meeting, as certified by The Central Depository (Pte) Limited to the 
Company.

8.  Agent Banks acting on the request of CPF investors who wish to attend the meeting as Observers are required to submit in writing, a list with details of the 
investors’ name, NRIC/Passport numbers, addresses and numbers of shares held. The list, signed by an authorised signatory of the Agent Bank, should reach 
the Company Secretary, at the registered office of the Company not later than 48 hours before the time appointed for holding the meeting.

Affix
Postage
Stamp

THE COMPANY SECRETARY
FRASERS CENTREPOINT LIMITED
#21-00 Alexandra Point

438 Alexandra Road

Singapore 119958

fold here

fold here

A NEW LEVEL OF
GROWTH

ANNUAL REPORT 2014

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FRASERS CENTRE PO INT LIMITE D
C o m p a n y   R e g i s t r a t i o n   N u m b e r :   1 9 6 3 0 0 4 4 0 G

438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958

Phone:  +65 6276 4882
+65 6276 6328
Fax: 

fraserscen trepo int.com