16. Development properties
During the financial year, borrowing costs of S$623,000 (2013: S$850,000), arising from borrowings obtained specifically for
the development properties were capitalised under “Development costs”. The rates used to determine the amount of borrowing
costs eligible for capitalisation ranges from 0.56% to 2.05% (2013: 0.56% to 2.03%) per annum, which are the effective interest
rates of the specific borrowings.
The construction costs incurred for the development properties during the year amounted to S$58,534,000 (2013: S$41,845,000).
The amount recognised in costs of sales for the year in respect of completed properties is S$140,165,000 (2013: S$Nil).
The two leasehold land under development have been pledged as security for bank loans (Note 26).
List of development properties
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
Group
2014
2013
S$’000
S$’000
Completed properties, at cost
20,940
–
Properties under-construction:
Cost incurred
52,580
157,874
73,520
157,874
Description and location
%
owned
Site area
(square
metre)
Approximate
saleable floor
area (square
metre)
Stage of completion as at
date of annual report
(expected year of
completion)
Industrial property at Gambas Avenue
100% 21,427
49,046
100.0% (2014)
Industrial property at Kaki Bukit Avenue 6
100% 13,072
16,924
98.8% (2015)
Hock Lian Seng Holdings Limited
Annual report 2014
76
