Annual report eng.2019

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2019 113 (All amounts are in Kuwaiti Dinars) ANNUAL REPORT 2019 Investment properties mainly compromise of the following: Management of the Group has complied with the Executive Regulations of Capital Markets Authority regarding the valuation of investment properties. Valuation of investment properties was conducted by two independent appraisers with recognized and relevant professional qualification using recognized valuation techniques and principles. In estimating the fair value of investment properties, the valuers had used the valuation techniques listed in the following schedule and had considered the nature and usage of the investment properties: Certain investment properties amounting to KD 114,947,635 (2018 - KD 102,447,177) and KD 9,600,087 (2018 - KD 11,064,768) were pledged as collateral against Islamic bank facilities and term loans (Note 14 and 15) respectively. Land Developed properties Rights to use real estate assets 33,194,636 120,858,402 17,099,343 171,152,381 28,753,180 117,626,027 - 146,379,207 2019 2018 Class of investment property Lands Residential buildings Residential buildings Commercial complexes Commercial complexes Rights to use real estate assets Total Class of investment property Lands Residential buildings Residential buildings Commercial complexes Commercial complexes Total Valuation technique Comparable market prices Comparable market prices Income capitalization Income capitalization Comparable market prices Discounted cash flows Valuation technique Comparable market prices Comparable market prices Income capitalization Income capitalization Comparable market prices 11,862,407 - 34,744,974 79,715,600 - 17,099,343 143,422,324 11,890,150 - 34,774,563 81,631,493 - 128,296,206 21,332,229 6,054,832 - - 342,996 - 27,730,057 16,863,030 880,000 - - 339,971 18,083,001 33,194,636 6,054,832 34,744,974 79,715,600 342,996 17,099,343 171,152,381 28,753,180 880,000 34,774,563 81,631,493 339,971 146,379,207 Level 3 Level 3 2019 2018 Level 2 Level 2 Total Total