NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 7. INVESTMENT PROPERTIES 2017 $’000 2016 $’000 Life Insurance Par Fund At 1 January 1,779,708 1,698,529 Additions 215 1,762 Disposals (1,462) (6,980) Asset held for sale (1,220) – Change in net fair value recognised in profit or loss 92,760 86,397 At 31 December 1,870,001 1,779,708 Investment properties are carried at fair values at the reporting date as determined by independent professional valuers. All properties are held as investment properties within the Life Insurance Par Fund for investment purposes (rental yields and/or capital appreciation). Any change in value of the properties would accrue mainly to the participating policyholders. One of the investment properties, with carrying amount of $745,800,000 (2016: $721,700,000) is mortgaged against the bank borrowing (Note 18). These properties are held for the purpose of capital appreciation and rental income. The following amounts are recognised in profit or loss. 2017 $’000 2016 $’000 Rental income 96,676 97,453 Direct operating expenses arising from investment properties that generated rental income (27,299) (26,090) 8. INVESTMENT IN SUBSIDIARIES The subsidiaries of the Co-operative, all incorporated in Singapore and having their place of business in Singapore, at 31 December 2017, are as follows. Name Principal activities Interest held by Co-operative 2017 % 2016 % Life Insurance Par Fund NTUC Co-operatives Suzhou Investments Pte Ltd Investment holding 73 73 Savu Investments Pte Ltd Owning and leasing an investment property 100 100 Shareholders' Fund NTUC Income Enterprises Pte Ltd (NIE) Operator of retail and referral services 100 100 NTUC Income Holdings Pte. Ltd. Investment holding 100 – On 6 November 2017, the Group incorporated NTUC Income Holdings Pte. Ltd. with a share capital of $1. ANNUAL REPORT 2017 EVERY DAY MADE DIFFERENT 93