72 Notes to Condensed Consolidated Financial Information 30 June 2024 STRENGTH IN UNITY 13. INVESTMENT PROPERTIES (continued) (d) Fair value hierarchy (continued) The movements in fair value measurements within Level 3 during the period are as follows: For the six months ended 30 June 2024 2023 (Unaudited) (Unaudited) US$’000 US$’000 At 1 January 3,088,516 2,624,209 Additions 170,787 124,448 Changes in fair value of investment properties (30,515) 115,528 Disposal — (32,203) Disposal of subsidiaries (92,120) (9,805) Transfer from Level 2 to Level 3 — 372,848 Reclassification to assets held for sale (282,257) (203,936) Exchange realignment (104,089) (108,270) At 30 June 2,750,322 2,882,819 The valuation of investment properties categorised within Level 2 of the fair value hierarchy is based on comparable market transactions for which the Group considers sales of similar properties that have been transacted in the open market. Below is a summary of the valuation techniques used and the key unobservable inputs to the valuation of investment properties categorised within Level 3 of the fair value hierarchy as at 30 June 2024 and 31 December 2023: Investment property details Valuation technique Key unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Logistics Income capitalisation Capitalisation rate: The estimated fair value varies inversely against capitalisation rate Facility, Data Centres, Land China: 5.40% to 7.00% (2023: 5.40% to 7.00%) Japan: 4.00% to 4.80% (2023: 3.30% to 4.80%) India: N/A (2023: N/A) Discounted cash flow Discount rate: The estimated fair value varies inversely against the discount rate China: 7.25% to 9.00% (2023: 7.25% to 9.00%) Japan: 3.80% to 4.60% (2023: 3.10% to 4.70%) India: 11.23% to 13.85% (2023: 11.27% to 14.50%) Terminal capitalisation rate: The estimated fair value varies inversely against the terminal capitalisation rate China: 4.25% to 6.25% (2023: 4.25% to 6.25%) Japan: 4.10% to 5.10% (2023: 3.50% to 5.20%) India: 7.50% (2023: 7.50%)
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