17. INVESTMENT PROPERTIES (CONT’D.) Reconciliation of fair values: (cont’d.) Freehold land and buildings RM’000 Leasehold land and buildings RM’000 Construction in-progress (“CIP”) RM’000 Total RM’000 At 1 January 2024 134,387 1,202,414 - 1,336,801 Reclassification previously stated at cost - - 105,542 105,542 Additions 1,570 - 7,797 9,367 Re-measurement recognised in profit or loss 2,482 600 22,119 25,201 Disposal - (933,701) - (933,701) Transfer to property, plant and equipment (Note 14) - (184) - (184) Transfer to assets classified as held for sale (Note 27) (9,750) (26,750) (102,458) (138,958) Reclassification 33,000 - (33,000) - Adjustment1 - (9,949) - (9,949) At 31 December 2024 161,689 232,430 - 394,119 1 During the financial year, the Group has finalised certain costs incurred for its leasehold land and buildings and CIP and arising therefrom RM7,713,000 (2024: RM9,949,000) was adjusted against other payables. Description of valuation techniques used and key inputs to valuation on investment properties: Valuation techniques Significant unobservable inputs Range 2025 2024 Land Comparison method The comparison method entails analysing recent transactions and asking prices of similar property in and around the locality for comparison purposes with adjustments made for differences in location, visibility, size and tenure. -35% to 45% -40% to 10% Commercial building Investment method* Estimated rental value per sqft per month RM2 to RM5 RM3 to RM5 Long-term vacancy rate 5% 3.50% to 5% Yield rate 4.75% to 6.5% 4.75% to 6.5% Commercial building Cost method** Estimated construction costs per sqft RM28 to RM379 RM28 to RM370 * The investment method entails determining the net annual income by deducting the annual outgoings from the gross annual income and capitalising the net income by a suitable rate of return consistent with the type and quality of the investment to arrive at the market value of the subject property. ** Buildings are valued by reference to the current estimates on construction costs to erect equivalent buildings, taking into consideration of similar accommodation in terms of size, construction, finishes, contractors’ overheads, fees and profits. Appropriate adjustments are then made for the factors of obsolescence and existing physical condition of the building. 297
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