Real Estate Properties under Development, Net

12 Months Ended

Dec. 31, 2024

Real Estate Properties under Development, Net

3.	Real Estate Properties under Development, Net

The following summarizes the components of current portion of real estate properties under development as at December 31, 2020, 2021, 2022, 2023 and 2024:


At December 31,	2020		2021			2022		2023		2024
	(’000)		(’000)			(’000)		(’000)		(’000)
Construction in progress		9,636		76,029			—		—		—
Land use right		112,057		114,535			—		—		—
Less: Impairment		—		(22,695	)		—		—		—

Net book value	$	121,693	$	167,869		$	—	$	—	$	—

The following summarizes the components of

non-current

portion of real estate properties under development

at December 31, 2020, 2021, 2022, 2023 and 2024:


At December 31,	2020			2021			2022			2023			2024
	(’000)			(’000)			(’000)			(’000)			(’000)
Building at cost	$	31,678		$	30,316		$	27,820		$	27,353		$	26,947
Less: accumulated depreciation		(16,065	)		(16,418	)		(15,050	)		(14,795	)		(14,568	)

		15,613			13,898			12,770			12,558			12,379

Construction in progress		92,533			89,170			87,182			94,482			106,820
Land use right		82,346			81,535			74,740			73,474			72,350

Net book value	$	190,492		$	184,603		$	174,692		$	180,514		$	191,549

Real estate properties under development of $95.4 million, $87.5 million, $86.0 million and $84.7 million (2020: $147.5 million) have been pledged to banks to obtain loan facilities as at December 31, 2021, 2022, 2023 and 2024 (See Note 9).

Included in construction in progress were capitalized debt issuance costs amounting to $1,920, $1,920, $1,920

$1,920 (2020: $1,754) at December 31, 2021, 2022, 2023 and 2024 respectively

and interest for bank loans amounting to $16,625, $22,369, $27,762

$32,487 (2020: $10,866)

at December 31, 2021, 2022, 2023 and 2024 respectively.

The Company leased its buildings to third parties with the carrying amount as shown below:


At December 31,	2020			2021			2022			2023			2024
	(’000)			(’000)			(’000)			(’000)			(’000)
Buildings at cost	$	31,678			30,316			27,820			27,353			26,947
Less: accumulated depreciation		(16,065	)		(16,418	)		(15,050	)		(14,795	)		(14,568	)

Buildings, net	$	15,613			13,898			12,770			12,558			12,379

In 2021, 2022, 2023 and 2024,

$nil (2020: $53.7 million) was transferred to real estate properties held for sales

type lease from real estate properties under development, and by the end of 2021, 2022, 2023 and 2024, $14.7 million, $0.3 million, $1.0 million and $1.8 million

(2020:$23.7 million) was recognized as cost of sales due to the delivery of Towers 1, 2, 8, 9 and 10 of Nam Tai Inno Park. Real estate properties held for sales

type lease of $nil (2020: $29.4 million) have been pledged to banks to obtain loan facilities (See Note 9).

In 2021,

2022, 2023 and 2024, a total of $nil, $154.5 million, $0.6 million and $0.004 million (2020:

nil) was transferred to real estate properties held for sale from real estate properties under development and by the end of 2021, 2022, 2023 and 2024, $nil, $20.8 million, $68.5 million and $5.8 million

(2020:

nil) was recognized as cost of sales due to the delivery of Nam Tai

•

Longxi. Real estate properties held for sale of $nil, $nil, $nil, and $3.8 million as at December 31, 2021, 2022, 2023 and 2024 (2020:

nil)

have been pledged to banks to obtain loan facilities (See Note 9).

In 2021, 2022, 2023 and 2024, a total of $62.9

million, $nil,

$nil and $nil

(2020:

$92.8

million) (See Note 5) was transferred to real estate properties held for lease from real estate properties under development.