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• the discounted cash flow approach (based on establishing a cash flow budget for the property having particular regard to the
length of lease term and nature of the leasehold interest and the following factors; discount rate, land inflation and rental rates); and
• comparing market evidence of transaction prices for similar properties.
Investment property valuations were completed as follows:
D.J. Saunders from Telfer Young (Waikato) Limited valued properties at fair value of $57m on 31 March 2016 (31 March 2015:
$68m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flow approaches.
T. Arnott from CB Richard Ellis Limited valued properties and assets held for sale at fair value of $320m on 31 March 2016 (31
March 2015: $311m) using a mixture of market evidence of transaction prices for similar properties, capitalisation and discounted
cash flow approaches.
K Sweetman from Colliers International NZ Limited valued properties at fair value of $96m on 31 March 2016 (31 March 2015:
$90m) using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and
discounted cash flows approaches.
P.A Curnow from Curnow Tizard Limited valued properties at fair value of $114m on 31 March 2016 (31 March 2015: $113m)
using a mixture of market evidence of transaction prices for similar properties, direct comparison, capitalisation and discounted
cash flow approaches.
All valuers are independent registered valuers not related to the Trust. All valuers hold recognised and relevant professional
qualifications and have recent experience in the locations and categories of the investment property they have valued.
As at 31 March 2016, 50 percent of assets relating to The Base Limited were classified as non-current assets held for sale. Refer
note 12.
18 TE WHEROWHERO TITLE PROPERTIES
Consolidated
Note
2016
$'000
2015
$'000
Held as investment property
Balance at beginning of the year
50,175
48,367
Net gain from fair value adjustments
5
18,135
1,808
68,310
50,175
Other land
At cost
1,716
1,716
Closing balance
70,026
51,891
(a) Valuation of Te Wherowhero title properties
Te Wherowhero title properties comprise of properties located at Kawhia, Onewhero, 192 The Terrace in Wellington, Hopuhopu,
The Base and the University of Waikato, Hamilton. Te Wherowhero investment properties are held at fair value amounting to
$68m (2015: $50m), valuations were completed as follows:
• the direct comparison approach (based on analysis of sales of vacant property. This analysis includes determination of land
value, other improvements and residual value for principal improvements);
• the traditional capitalisation approach (focusing on the net maintainable revenue and the level of investment return);
• the discounted cash flow approach (based on establishing a cash flow budget for the property having particular regard to
the length of lease term and nature of the leasehold interest and the following factors; discount rate, land inflation and
rental rates); and
• comparing market evidence of transaction prices for similar properties.