214
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
4 ACQUISITIONS
(continued)
(A) Initial acquisition
(continued)
(iii)
Fair value of identifiable assets acquired and liabilities assumed
Note
$’000
Plant and equipment
1,614
Investment properties
5
2,051,712
Management contracts
7
28,244
Associates and joint ventures
1,694,629
Other financial assets
5,445
Properties under development
1,683,260
Trade and other receivables
182,018
Cash and cash equivalents
130,937
Loans and borrowings
(1,491,399)
Junior bonds
(143,863)
Redeemable preference shares
(47,613)
Deferred tax liabilities
17
(43,627)
Trade and other payables
(679,833)
Current tax liabilities
(5,730)
Non-controlling interests
(1,018,897)
Total identifiable net assets
2,346,897
The valuation techniques used for measuring the fair value of investment properties and other financial assets
acquired are similar to those disclosed in note 5 and note 8 respectively.
(iv)
Goodwill
Goodwill arising from the acquisition has been recognised as follows:
$’000
Fair value of total identifiable net assets
(2,346,897)
Shareholders loan assumed
(246,168)
(2,593,065)
Total consideration transferred
2,656,220
Goodwill (note 7)
63,155
The goodwill is mainly attributable to the management businesses. Management businesses are engaged
primarily in real estate and real estate-related activities, including fund management, asset management, retail
management, project development, project and design management and investment advisory services. The
Group has a retail skillset and expertise for mixed-use development supported by a management team with
strong capabilities and proven track record.
(v)
Legal and professional fees
Legal and professional fees in relation to the structuring of the business of $11.4 million were included in
administrative expenses in the profit or loss for the period ended 31 December 2015.
