NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 5 INVESTMENT PROPERTIES (CONT’D) (f) Determination of fair value The fair values for a majority of the Group’s investment properties are determined by independent external valuers who have appropriate recognised professional qualifications and recent experience in the location and category of the investment properties being valued. The fair values of certain investment properties located in Singapore are based on in-house valuations conducted by a licensed valuer who is also an officer of the Company. The internal valuer has appropriate recognised professional qualifications and experience in the location and category of the investment properties being valued. The fair values of the investment properties were estimated using the direct comparison, discounted cash flow, income capitalisation, standardised land value adjustment and residual methods. The direct comparison method involves an analysis of comparable sales of similar properties and adjusting the transacted prices to those reflective of the investment properties of the Group. The discounted cash flow method involves the estimation and projection of an income stream over a period and discounting the income stream with an internal rate of return to arrive at the market value. The income capitalisation method capitalises an income stream into a present value using revenue multipliers or single-year capitalisation rates. The standardised land value adjustment method considers the price of standard land in the current situation of development and utilisation, under normal market conditions within legal maximum use term as at a special date, that is assessed and approved by the local government. The residual method involves deducting the estimated cost to complete as of valuation date and other relevant costs from gross development value of the proposed development assuming satisfactory completion and accounting for developer’s profit. The fair value disclosure for the investment properties for the Group and the Company has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used. 6 ASSETS HELD FOR SALE Group 2025 2024 $’000 $’000 Assets held for sale Investment properties 174,919 95,900 Property, plant and equipment 719 10,188 Trade and other receivables 1 – Cash and cash equivalents 424 – 176,063 106,088 Liabilities directly associated with the assets held for sale Trade and other payables 2,938 – At 31 December 2025, assets held for sale relate to the following proposed divestments: (a) The Group’s indirect subsidiary, Fusion North Limited, has entered into an equity transfer agreement to dispose of its 100% interest in Shanghai Fusion Enterprise Management Co., Ltd which holds Yaojiang International (which is in the investment properties segment), to a third party for a sale consideration of RMB94.1 million ($17.2 million). The sale was completed in February 2026 and the gain on disposal is not material to the Group. (b) The Group has entered into a sale and purchase agreement to dispose of Quayside Isle (which is in the investment properties segment), owned by Cityview Place Holdings Pte. Ltd., to a third party for a sale consideration of $97.3 million. The sale was completed in February 2026 and the gain on disposal is estimated at $30.7 million. (c) In 2025, the Group commenced the marketing of Hong Leong Plaza Hongqiao located in Shanghai for divestment. As at 31 December 2025, pursuant to planned divestment of Hong Leong Plaza Hongqiao (which is in the investment properties segment) located in Shanghai, the investment property was reclassified as assets held for sale. ANNUAL REPORT 2025 | 153
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