NOTES TO THE FINANCIAL STATEMENTS
23 Commitments
(a)
Lease commitments
CIT’s investment properties are leased. Non-cancellable operating lease rentals are receivable as follows:
Group and Trust
2014
2013
$’000
$’000
Receivable:
– Within 1 year
98,154
83,871
– After 1 year but within 5 years
226,960 178,693
– After 5 years
88,786
52,337
413,900 314,901
(b)
Operating lease commitments
CIT is required to pay annual land rent to Jurong Town Corporation (“JTC”), Housing & Development
Board (“HDB”) and Ascendas Land (Singapore) Pte Ltd (“Ascendas”) for 27 (2013: 24) properties.
The annual land rent is based on market rent for the relevant year and any increase in annual land rent
from year to year shall not exceed 5.5% of the annual land rent for the respective properties for the
immediate preceding year. The land rent paid based on prevailing rental rates during the financial year
was $5,629,000 in relation to 27 properties (2013: $4,595,000 in relation to 24 properties).
As at 31 December 2014 and 31 December 2013, CIT had the following operating lease commitments
based on the underlying land leases which range from 21 to 50 years.
Gross
amount
Borne by
tenants
Net
amount
Within
1 year
Within
1 to 5 years
More than
5 years
Group and Trust
$’000
$’000
$’000
$’000
$’000
$’000
2014
Land rents
– JTC
358,218 (184,320)
173,898
4,898
24,488 144,512
– HDB
93,962
(28,894)
65,068
1,677
8,383
55,008
– Ascendas
20,139
– 20,139
563
2,813
16,763
472,319 (213,214)
259,105
7,138
35,684 216,283
2013
Land rents
– JTC
324,645 (187,960)
136,685
3,606
14,447
118,632
– HDB
92,090 (28,820)
63,270
1,589
6,358
55,323
416,735 (216,780)
199,955
5,195
20,805
173,955
(c)
Capital commitments
As at the reporting date, the Group had $7.5 million (2013: $36.0 million) of capital expenditure
commitments relating to the asset enhancement initiatives works and capital expenditure for investment
properties that had been authorised and contracted for but not provided in the financial statements.
These capital projects are targeted to be completed in 2015.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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