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ANNUAL REPORT 2017
-
POSITIONING FOR
G ROWTH
CONTENTS 01 About Mercatus Co-operative Limited 02 Historical Milestones 03 Business Strategy 04 Chairman’s Message 06 Highlights of the Year 08 Financial Highlights 09 Operational Review 10 Social Impact 12 Board of Directors 14 Key Management 15 Property Profile 21 Financial Statements
ABOUT MERCATUS
CO-OPERATIVE LIMITED
Mercatus Co-operative Limited Mercatus’ portfolio consists of:
(Mercatus) is the real estate subsidiary of • AMK Hub, a conveniently located
NTUC Enterprise Co-operative Limited. shopping mall in the heart of Ang Mo
Mercatus’ vision is to own and manage Kio town centre;
a portfolio of commercial properties to • Jurong Point, the largest suburban
provide NTUC social enterprises with mall in Singapore;
access to commercial space and generate
• NEX, the biggest mall in the
sustainable, long-term returns for the north-east region of Singapore;
Labour Movement.
• Thomson Plaza, a retail mall located
in Upper Thomson with a rich
Mercatus was registered under the
community heritage;
Co-operative Societies Act on 31 May
2011. Mercatus’ portfolio comprises • 37 strata-titled assets in HDB estates
and shopping malls island-wide; and
5 strategically located retail and office
properties and 37 strata-titled assets • One Marina Boulevard, a premium
in Housing Development Board (HDB) Grade A office building located in
Singapore’s Central Business District.
estates and shopping malls with a
combined valuation of $5.2 billion as at
31 December 2017.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 1
HISTORICAL
MILESTONES
January 2018:
Completed acquisition of 69.6% of NTUC
Choice Homes from NTUC Enterprise and
NTUC FairPrice
2018
December 2017:
Acquired a strata lot at Thomson Plaza
June 2017:
Completed acquisition of Jurong Point 2017
January 2017:
Acquired strata properties in HDB estates
and shopping malls
July 2016 :
Acquired One Marina
Boulevard
2016
July 2016:
Acquired strata ownership
in Thomson Plaza
July 2012:
Acquired 50%
interest in NEX
– a joint venture 2012
company
holding
November 2011:
Acquired first property – AMK Hub
2011 May 2011:
Registered in Singapore under the
Co-operative Societies Act
2 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017
BUSINESS
STRATEGY
Mercatus will continue to seek to invest in, develop and manage a diversified,
well-located portfolio of commercial real estate in Singapore. As part of its
growth and diversification strategy, Mercatus will explore overseas opportunities
and various platforms to raise capital.
STRATEGIES
Strategically Located Quality Assets
01 • Quality shopping malls in suburban areas and office building in the downtown core of Singapore.
• Strategically located in areas with a good catchment of high-density residential population.
• Good connectivity via convenient access to major transport infrastructure.
02 Proactive and Prudent Capital Management
• Adopt and maintain optimal capital structure with appropriate gearing levels.
• Maintain flexibility in respect of funding for future capital expenditures and acquisitions.
COMPETITIVE STRENGTHS
Active Asset Management
• Value creation through asset enhancement initiatives to improve the relevance and attractiveness
03
of malls to tenants and shoppers.
• Proactive approach to leasing and tenant management to maximise occupancy and achieving stable
rental returns.
• Optimise and constantly refresh tenant mix for both retail and office portfolio.
Strong Parentage
• A subsidiary of NTUC Enterprise, which is a diversified holding co-operative with businesses that
04 include retail, food, education services for children and adults, healthcare, senior care, and the
insurance.
• Opportunities to leverage on the expertise, scale of operations and robust network of relationships
of its related entities.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 3
CHAIRMAN'S
MESSAGE
Dear Members
On behalf of the Board of Directors, I am pleased to present
Mercatus’ Annual Report for the year ended 31 December
2017.
Growth of Mercatus
2017 was a difficult year for the retail industry given the
slower growth in household income in Singapore, increasing
competition from e-commerce as well as the growing
trend of residents traveling overseas to shop. In spite of
these challenges, Mercatus performed commendably and
continued to grow with sound financial management and
operational excellence.
In terms of growth of its portfolio, 2017 was a significant
milestone in Mercatus brief history. In addition to
consolidating the property assets of NTUC FairPrice (FP)
across various locations in Singapore, Mercatus completed
its largest acquisition to date with the purchase of Jurong
Point. By the end of 2017, Mercatus’ assets had grown to
$5.0 billion, up from $1.8 billion in 2016.
Mercatus also completed a share swap with its shareholders,
NTUC Enterprise (NE) and FP, for their shares in NTUC Choice
Homes (NCH) on 2 January 2018. With the completion of
the share swap, Mercatus became a majority shareholder of
NCH with 69.6% shareholdings.
The consolidation of assets from the NTUC group of social
enterprises under Mercatus highlights the importance of
Mercatus’ role as the real estate arm of the Group, and
positions Mercatus as an important financial resource
for the Group, and for preservation of the Group’s capital
through real estate.
As a result of the expansion of Mercatus’ portfolio of assets in
2017, Mercatus’ total revenue increased to $205.9 million, up
from $82.1 million in 2016, with a net surplus of $82.1 million
before contributions, up from $7.9 million in 2016.
In respect of the financial year ended 31 December 2017, the Board of Directors has proposed the issuance of 33 bonus
shares for every 1000 shares held, amounting to a total of $50.8 million, in lieu of dividends. This is subject to approval by
members at the Annual General Meeting.
Building capabilities
2017 also saw Mercatus strengthening its capabilities in capital management and asset management.
In the area of capital management, Mercatus successfully established a $1.0 billion multi-currency Medium Term Note (MTN)
programme with SGX on 9 June 2017. This MTN programme will provide Mercatus access to the debt capital markets beyond
the traditional borrowings from banks.
On 26 July 2017, Mercatus successfully launched its maiden bond issuance of $200.0 million 7-year notes at 2.8% per
annum to tap a wider investor-base. Investors’ response was positive, with the issue heavily over-subscribed, demonstrating
investors’ confidence in Mercatus’ credit standing. Investors’ confidence in Mercatus’ performance and credibility was further
underscored with a successful launch of its second bond issuance on 19 January 2018 of $150.0 million 10-year notes at
3.1% per annum.
4 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017
CHAIRMAN'S
MESSAGE
In the area of asset and property management, Mercatus Through the use of Internet-of-Things (IoT) technology,
demonstrated its commitment to excellence, innovation and Mercatus will also convert our shopping malls into smart
productivity. buildings progressively from 2018 onwards. The vast
amount of data made available will then improve manpower
A case in point is One Marina Boulevard (OMB). By enhancing
productivity, reduce equipment downtime and achieve
the lobby areas, optimising prime spaces to accommodate
energy savings.
a wider range of retailers, and improving accessibility,
Mercatus has enabled OMB to compete more effectively in To ensure that our malls remain relevant, we have started
the Grade A office market in the Marina Bay area. incorporating the use of design thinking, a human-centered
approach to business, to bring forth new concepts, services
Overall, the occupancy rate at Mercatus’ properties is
and spatial design that will better engage our shoppers and
healthy at above 99%, with steady shopper traffic per month.
make their time with us a far more enjoyable one.
Mercatus will continue to partner tenants to boost their
sales as well as create greater customer value. Mercatus is committed to constantly innovate to improve
its business offerings, as well as enhance its operational
excellence to stay competitive. I am heartened to note that
Looking Ahead
the management and team are moving in the right direction.
The economic climate in 2018 looks more stable, with the
Ministry of Trade and Industry projecting that the economy
would expand slightly in the mid-range of 1.5% to 3.5%. Appreciation
Stronger economic fundamentals could better support the On behalf of the Board, I wish to extend my gratitude to
retail sector, although structural mismatch in the labour members for your support. I would also like to express our
market would continue to mean more cautious spending by deep appreciation to the management and staff for their hard
consumers. work and dedication. I am also grateful to my fellow directors
for their counsel and guidance in steering Mercatus forward.
While e-commerce continues to change the way we shop,
we firmly believe that brick-and-mortar retail is well and Together, we can expect Mercatus to continue to grow
alive. Traditional store formats may be on the decline, but steadily.
innovative stores that offer greater shopping experiences
will continue to attract shoppers. Shoppers’ expectation of
a mall has also shifted today. They increasingly view it as a
destination for entertainment and new experiences.
The future is bright for shopping malls which find innovative MS MAY NG
ways to meet the needs of their shoppers. Data will provide a CHAIRMAN
rich source of insights to help us determine the best course of
action. Evolution of the retail landscape will take many forms,
be it in terms of a new retail format, new service experience
or new in-store technologies. However, the winning formula
will be one that is based on customer-centricity and creating
a more personalised in-mall experience. In response to
these trends, Mercatus will innovate, digitise and adapt our
business to better engage with our shoppers and tenants,
and to reap productivity gains. In 2018, Mercatus will be
introducing a new digital loyalty programme. Shoppers can
spend their time at our malls more meaningfully by accessing
other digital services in the mall through their smartphones,
such as for e-vouchers, promotional gifts redemption, in-mall
wayfinding and automatic enrolment in lucky draws.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 5
HIGHLIGHTS
OF THE YEAR
One Marina Boulevard
EXPANDING ASSETS UNDER MANAGEMENT
CONSOLIDATION OF RETAIL STRATA ASSETS FROM FP
ON 1 JANUARY 2017
• The acquisition comprises 37 strata-titled assets within
shopping malls and HDB sites located in major housing
estates across Singapore.
• An aggregate net lettable area of approximately
370,000sf was acquired with the strata spaces leased
mainly to FP to support their retail operations.
ACTIVE CAPITAL MANAGEMENT
ACQUISITION OF JURONG POINT IN JUNE 2017
ESTABLISHMENT OF $1.0 BILLION MTN PROGRAMME
• Jurong Point is Singapore’s largest suburban mall.
• Successfully established and listed its $1.0 billion
Strategically located within one of the largest residential
multi-currency MTN programme with SGX on 9 June
areas in Singapore, the acquisition expanded Mercatus’
2017.
shopping mall footprint to the western part of Singapore.
The acquisition further enhanced the tenant and income • The MTN programme diversifies Mercatus’ sources of
diversification of Mercatus arising from an enlarged funding and allows Mercatus to secure borrowings of
portfolio and tenant base. longer tenures.
SUCCESSFUL ISSUANCE OF BONDS
ACQUISITION OF MAJORITY STAKE IN NCH FROM
• Launched its maiden bond issuance on 26 July 2017,
SHAREHOLDERS
raising $200.0 million, 7-year notes at 2.8% per annum.
• Completed share swaps with its shareholders NE and FP
for their shares in NCH in January 2018. • The issue received an order of almost $530.0 million
from 37 accounts (2.6 times subscribed), demonstrating
• The move supports NE’s plan to consolidate its real
the investors’ confidence in Mercatus’ performance and
estate business in Mercatus. Mercatus is now a majority
credit standing.
shareholder of NCH with a 69.6% shareholding.
• A second bond issuance of $150.0 million 10-year
• NCH is a co-operative established with the objective
notes at 3.1% per annum was successfully launched on
of building and delivering affordable quality homes in
19 January 2018.
Singapore. The last development was completed in 2014.
6 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017
HIGHLIGHTS
OF THE YEAR
Self-Collect @ JP
Jurong Point
INITIATIVES TO BETTER SERVE CUSTOMERS ‘Swing By’ at Thomson Plaza
AND TENANTS
ASSET ENHANCEMENT INITIATIVES AT OMB PROVIDING E-TAILERS A SPACE IN THE MALL
• Completed rejuvenation works which improves • Introduced ‘Swing By’ at Thomson Plaza, a
accessibility, enhances lobby areas and optimises prime co-retailing space to provide e-tailers a shot at retailing
space for a wider range of retailers. in an offline environment. Mercatus’ sales ambassadors
oversee retail operations and shoppers may meet brand
PARTNERSHIP WITH “LAST MILE DELIVERY” LOGISTICS owners in person, engage in DIY handicrafts and attend
PLAYERS TO ENHANCE CUSTOMERS EXPERIENCE product customisation workshops.
• Jurong Point introduced a multi-brand parcel
• The co-retail space leverages technologies such as smart
self-collection facility ‘Self-Collect @ JP’ in collaboration
POS system integrated with data analytics, Wi-Fi analytics
with Ninja Van, Singapore Post’s POPStation and
for shopper profiling and store heat-mapping enabled by
Ta-Q-Bin.
video analytics.
• One of the first in Singapore, the initiative enables
shoppers to collect their online purchases at automated
parcel lockers anytime at a location that is well connected
to main transportation nodes.
• Jurong Point also introduced parcel collection over the
counter with Ezbuy joining the service provider list in
January 2018. This service has been well received by
shoppers.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 7
FINANCIAL
HIGHLIGHTS
AMK Hub
56.0% 1
$205.9 M $82.1 M
NET SURPLUS BEFORE
LEVERAGE RATIO GROSS REVENUE
CONTRIBUTIONS
5.1x
INTEREST COVERAGE RATIO
15% 18%
3.1 years 41%
17%
41%
19%
AVERAGE TERM TO MATURITY
13% 10% 4% 9% 9% 4%
2.0% p.a.
AVERAGE COST OF DEBT
Contribution by valuation2 Contribution by gross revenue2
(as at 31 December 2017) (for the month of December 2017)
Jurong Point AMK Hub NEX
Thomson Retail Strata One Marina
Plaza Assets Boulevard
Notes:
(1) Includes Mercatus’ proportionate share of its joint venture borrowings.
(2) Reflects 50% share of NEX’s valuation and gross revenue. NEX’s financial results are accounted for as “share of results of joint venture” in the
Group’s financial statements.
8 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017OPERATIONAL
REVIEW
TOP 10 TENANTS CONTRIBUTION:
(For the month of December 2017)
99.7%
OCCUPANCY
26.1%
OF GROSS RENT
42.2%
OF GROUP NLA
156.4M
SHOPPER TRAFFIC
TOP 10 TENANTS:
• NTUC Fairprice Co-operative Ltd • Isetan (Singapore) Limited
• Microsoft Operations Pte Ltd • Cold Storage Singapore (1983) Pte Ltd
• Allen & Gledhill LLP • NTUC Club
• R E & S Enterprises Pte Ltd • NTUC Foodfare Co-operative Ltd
• Workforce Singapore Agency • BHG (Singapore) Pte. Ltd.
LEASE EXPIRY PROFILE TRADE CATEGORIES
Food & Beverage 25.9%
16.9%
34.6% 15.3%
Beauty & Health 10.9%
Fashion & Accessories / Kid’s 12.5%
Apparel / Shoes & Bags 7.6%
10.6%
Supermarket / Hypermarket 20.4%
24.5%
23.7%
10.4%
Sundry & Services 9.3%
Electricals including 7.7%
8.1%
Information Technology and
Telecommunication
15.6%
Gifts & Souvenirs / 4.1%
Toys & Hobbies / 3.7%
Books & Stationery /
Sporting Goods
2.8%
Jewellery & Watches 0.8%
Others 2.6%
9.7%
1.6% 2.5%
Department Store 4.2%
2.3%
2018 2019 2020 2021 2022 Leisure & Entertainment 4.5%
and
1.7%
after Houseware and Furnishing 1.3%
1.6%
Jurong Point AMK Hub NEX Education 2.6%
Thomson Retail Strata One Marina
Plaza Assets Boulevard Gross Revenue (%) NLA (%)
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 9SOCIAL
IMPACT
Mercatus’ retail malls, with healthy shopper traffic, are good platforms to support
social, health and environmental causes. During the year, Mercatus supported
numerous events for non-profit, community and charitable organisations. Mercatus
continues to be committed to creating a positive social impact through our support
of the NTUC-U Care Fund.
Donation to NTUC-U
Care Fund (established
to better the welfare
of low-income union
members and their
families).
‘Jolly Jamobree’
Christmas carnival
@ AMK Hub
• 500 low-income
families were treated
to free carnival rides.
• Raised over $10,000 for
NTUC-U Care Fund.
‘Mall Watch’ crime
prevention road show
‘Play for Care Charity
@ AMK Hub
Ball Pit’ @ Jurong Point
• Funds raised for
NTUC-U Care Fund.
10 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017SOCIAL
IMPACT
People Association’s ‘Adopt a Minions
‘Embracing Parenthood Plush’ @ NEX
• Funds raised donated
Celebrations’
programme to Make-A-Wish
@ Jurong Point Foundation.
Health Promotion
Board’s (HPB) weekly
piloxing session
@ AMK Hub
‘NEX Donation Drive’ in
partnership with
The Salvation Army
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 11BOARD OF
DIRECTORS
MS MAY NG
CHAIRMAN
Ms Ng is the CEO of Pan-United Corporation Ltd. She is also a Director of NTUC Enterprise
Co-operative Limited. Ms Ng was conferred the Meritorious Service award in 2014 by the
NTUC for her continuous support, dedication and significant contribution to the Labour
Movement.
MR WONG HENG TEW
DIRECTOR
Mr Wong is currently an Advisory Director in Temasek Holdings. He is also a board member
in Heliconia Capital Management and Azalea Asset Management. Mr Wong was conferred
the Friend of Labour Award in 2014 by the NTUC for his continuous support, dedication and
significant contribution to the Labour Movement.
MR WILLY SHEE
DIRECTOR
Mr Shee is the Senior Adviser of CBRE Pte Ltd. He is also a Director of Bund Center Investments
Ltd, Keppel Land Ltd and Ascendas Hospitality Trust.
MR SOONG HEE SANG
DIRECTOR
Mr Soong is currently an Independent Non-Executive Director of Keppel-KBS US REIT
Management Pte Ltd. Prior to this, Mr Soong was with GIC Real Estate for 9 years and his
last appointment was Managing Director, GIC Real Estate, London. Prior to that, he was
with CapitaLand for 9 years where he held appointments as Country Director and Managing
Director, London; Deputy CEO of CapitaLand Commercial, CEO of CapitaLand and CEO
(New Markets) of CapitaLand Residential.
MR NG ENG KIONG
DIRECTOR
Mr Ng is the Senior Director of Squire Mech Pte Ltd. He is also the Honorary Advisor of the
Singapore Green Building Council. He has been recognized as a BCA Certified Construction
Productivity Professional (Honorary).
12 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017BOARD OF
DIRECTORS
MR YEO CHUN FING
DIRECTOR
Mr Yeo is the Assistant Secretary for Financial Affairs in the National Trades Union Congress
(NTUC), General Secretary of the Amalgamated Union of Public Employees (AUPE), Chairman
of AUPE Credit Co-operative Limited and Second Deputy Chairman of Singapore National
Co-operative Federation (SNCF). Mr Yeo was conferred the Friends of MCCY Award in 2017
by the Ministry for Culture, Community and Youth (MCCY) in recognition and appreciation
of his contributions to the development of the co-operative movement.
MR TAN KIAN HUAY
DIRECTOR
Mr Tan has over 40 years of experience in the building and construction industry, including
serving as the Managing Director of Obayashi Singapore Pte. Ltd. from 1989 to 2004. He is
currently a fellow and was a former 2nd Vice President of the Society of Project Managers.
MR LIM KOK GUAN
DIRECTOR
Mr Lim is the Managing Director/Head of Integrated Infrastructure and Support of NTUC
Fairprice Co-operative Limited. He is also a Director of NTUC Choice Homes Co-operative
Limited and a number of Mercatus subsidiaries.
MS ADELINE SUM
DIRECTOR
Ms Sum is the Deputy CEO of NTUC Enterprise Co-operative Limited and the Managing
Director of NTUC Fairprice Co-operative Limited. She also holds directorships in
ComfortDelgro Corporation Limited and NTUC Health Co-operative Limited.
AUDIT & RISK INVESTMENT ESTABLISHMENT CUSTOMERS
COMMITTEE COMMITTEE COMMITTEE EXPERIENCE
Mr Wong Heng Tew (Chairman) Ms May Ng (Chairman) Ms May Ng (Chairman) COMMITTEE
Mr Ng Eng Kiong Mr Lim Kok Guan Mr Willy Shee (set up on 7 November 2017)
Mr Yeo Chun Fing Mr Soong Hee Sang Ms Adeline Sum Mr Willy Shee (Chairman)
(with effect from 1 June 2017) Mr Lim Kok Guan
Ms Adeline Sum
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 13KEY
MANAGEMENT
MR DAVID POH
CHIEF EXECUTIVE OFFICER
Mr Poh was appointed as CEO of Mercatus in 2017. Prior to the appointment, Mr Poh
served on the Mercatus Board and played a key role in the setup of Mercatus in 2011.
Under his leadership, Mercatus acquired 50% ownership in NEX in 2012, consolidated
FP retail properties and OMB in 2016, and made the landmark acquisition of Jurong Point in
2017. Mr Poh also holds the appointment as the Deputy CEO and CFO in Singapore Labour
Foundation.
MS LOKE HUEY TENG
CHIEF FINANCIAL OFFICER
Ms Loke has over 18 years of experience in business development, investment, capital
markets, corporate finance and accounting. Before Mercatus, Ms Loke was the CFO of
Mapletree Commercial Trust Management. She had served in different roles within the
Mapletree Group since she joined in May 2004 and was responsible for the public listing of
2 other Mapletree REITs. Prior to Mapletree, Ms Loke was with the PSA Corporation and was
involved in international business development.
MR RAYMOND TAN
CHIEF OPERATING OFFICER
Prior to joining Mercatus, Mr Tan was Director, Asset Management in ARA Asset Management
Limited, where he was responsible for the retail portfolio of ARA in the region. He was the
Executive Director and Co-founder of Synergistic Real Estate Management & Network Pte Ltd,
a retail development consulting firm for 10 years before he joined ARA.
14 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017PROPERTY PROFILE
AMK HUB
$793.0M 100 % 320,000 SF $61.9M
APPRAISED VALUE OWNERSHIP NET LETTABLE AREA FY2017 TOTAL REVENUE
(APPROXIMATE)
99 YEARS
COMMENCING FROM
100 % 520,000 SF
OCCUPANCY RATE GROSS FLOOR AREA
24 AUGUST 2004 (APPROXIMATE)
LEASE TENURE
AMK Hub is a conveniently located shopping mall in the heart and pledged $2 with every purchase of the carnival passes.
of the Ang Mo Kio housing estate. Located at the intersection Over $10,000 was raised for the NTUC-U Care Fund. AMK Hub
of Ang Mo Kio Avenue 3 and Ang Mo Kio Avenue 8, the mall also provided a platform for events including:
enjoys prominent frontage, offering high visibility to passing
• Thye Hua Kwan Moral Society (THK) – Claw game machines
traffic and shoppers.
for shoppers to win stuffed toys. Money raised from the
AMK Hub celebrated its 10th Anniversary in 2017 and gave machines will go towards services such as THK’s free meal
away exciting gifts to shoppers in return for their support centres and free clinics.
of the mall. For example, 10 lucky shoppers walked away • Singapore Heritage Festival 2017 by National Heritage Board
with $35,000 worth of gold bars during the Chinese New – ‘Tales from Our Shores’ interactive exhibition.
Year promotion programme. As part of the 10th anniversary • Info-communications Media Development Authority of
celebration, AMK Hub also organised a live auction event Singapore (IMDA) – A mobile digital truck awareness to
where shoppers walked away with prizes such as massage educate shoppers on the transition to digital TV before
chairs and television sets. analog TV signals are turned-off at end 2017.
AMK Hub continues to actively support numerous charity • Ang Mo Kio Police South – ‘Mall Watch’ crime prevention
drives and meaningful events for non-profit, community and roadshow.
charitable organisations. During the Christmas season, AMK • SAFRA – ‘We Salute Our NSmen’, interactive digital campaign
Hub presented ‘A Jolly Jamboree’ for the second time running for shoppers to post salute images on Facebook & Instagram.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 15PROPERTY PROFILE
JURONG POINT
$2,149.5M 100 % 720,000 SF $69.3M
APPRAISED VALUE OWNERSHIP NET LETTABLE AREA TOTAL REVENUE
(OF STRATA SPACE (APPROXIMATE) (FROM DATE OF
OWNED) ACQUISITION
30 JUNE 2017)
99 YEARS FROM
30 NOVEMBER 1993 (JP1)
99.6 % 1,100,000 SF
OCCUPANCY RATE GROSS FLOOR AREA
AND 20 JUNE 2006 (JP2) (APPROXIMATE)
LEASE TENURE
Jurong Point is strategically located within one of the largest In 2017, several new concepts and retailers were introduced in
residential areas in Singapore, serving more than 270,000 Jurong Point. These include Ilahui, a fast fashion leisure retail
households in HDB flats and private properties. It is directly chain which offers consumers the concept of Korean inspired
connected to Boon Lay MRT station as well as a bus interchange living – delivering a wide variety of good quality products for
within the mall. value prices.
Jurong Point is well positioned to attract shopper traffic from Jurong Point revamped its Japanese Street – ‘Shokutsu Ten’,
the nearby Jurong Lakeside District, as well as the student and carving out a new alley offering Ginzushi (for sashimi and
education population from Nanyang Technological University chirashi don), Tenfuku Tendon Specialty (for Japanese tendon),
and other schools in the catchment. Idaten Udon (for udon dishes), Ichiban Bento (for bento sets)
and Wadori (for yakitori).
In 2017, several new initiatives were introduced in Jurong
Point to enhance shoppers’ experience. The first of its kind Malaysia Boleh, a food outlet selling Malaysia street food, was
in Singapore, Jurong Point unveiled ‘Self-Collect @ JP’, a also rejuvenated, doubling its previous space to 14,000sf. It
multi-brand parcel self-collection facility. Shoppers now enjoy seats 600 diners, offering everything from Penang-style fried
the flexibility of collecting their online purchases from more carrot cake to kway teow kia from Johor Bahru.
than one (last-mile) delivery service providers at a single
location and in close proximity to Boon Lay MRT and Bus Jurong Point was re-certified Green Mark Gold in recognition
Interchange. of its efforts in environmental sustainability.
16 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017PROPERTY PROFILE
NEX
$893.5M 50 % 630,000 SF $62.2M
(50%) OWNERSHIP NET LETTABLE AREA (50%)
APPRAISED VALUE (APPROXIMATE) FY2017 TOTAL REVENUE
99 YEARS 99.8 % 940,000 SF
COMMENCING FROM OCCUPANCY RATE (100%)
26 JUNE 2008 GROSS FLOOR AREA
LEASE TENURE (APPROXIMATE)
NEX, one of the largest mall in the north-east region of such as pitting their web-slinging skills at the game zone.
Singapore, is situated at the junction of Serangoon Central Adult-sized Spider-Man mascots made special appearances
and Serangoon Road, and is surrounded by public and private from 23 June 2017 to 26 June 2017, where families snapped
housing estates. It is approximately 10 km from the city centre up limited passes per session to get up close with their
and is connected to the Bus interchange and underground favourite Marvel web-slinging crusader. Families also picked
Serangoon MRT. up memorabilia and merchandises at the retail area.
NEX continues to bring in large scale and attractive activities Currently, NEX boasts renowned international tenants such as
to provide shoppers with interesting experiences. During Pedro and Bake Cheese Tart, with new brands Martgo Tokio,
the June school holiday, NEX launched the Spider-Man: Bike31 and Grand Castella Cake that came on board in 2017.
Homecoming campaign with an in-mall experience from
1 June 2017 to 9 July 2017. Children dressed up in Spider-Man Like Jurong Point, NEX was re-certified Green Mark Gold in
costumes and participated in Spider-Man themed games, recognition of its efforts in environmental sustainability.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 17PROPERTY PROFILE
THOMSON PLAZA
$207.0M 100 % 110,000 SF $11.7M
APPRAISED VALUE OWNERSHIP NET LETTABLE AREA FY2017 TOTAL REVENUE
(OF STRATA SPACE (APPROXIMATE)
OWNED)
99 YEARS
COMMENCING FROM
97.8 %
OCCUPANCY RATE
140,000
GROSS FLOOR AREA
SF
15 OCTOBER 1976 (APPROXIMATE)
LEASE TENURE
Thomson Plaza is a strata-titled suburban mall with a rich In January 2018, Thomson Plaza launched ‘Swing By’, a
community heritage located along Upper Thomson Road. It will co-retailing space which allows e-tailers to showcase their
be connected to Upper Thomson MRT station when Thomson- products and interact with shoppers.
East Coast Line becomes operational in 2020. Mercatus owns
45% of the total retails space in the mall and actively manages On 11 December 2017, Mercatus acquired a strata lot located
the tenant mix within its area. at Thomson Plaza, bringing Peach Garden Restaurant and
Home-Fix The D.I.Y store into its portfolio. This is in line
Thomson Plaza had noteworthy additions to its tenant mix with our strategy to continue investing in, developing and
during the year. Tenants such as Wine Connection, W Tea managing a diversified portfolio of commercial real estate in
House, Song Kee Fishball Noodles House, Rickson’s Kitchen and Singapore.
Li Ho! enhanced the food and beverage selection in the mall.
18 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017PROPERTY PROFILE
RETAIL STRATA ASSETS
$499.9M 100 % 99.4 %
APPRAISED VALUE OWNERSHIP OCCUPANCY RATE
(OF STRATA SPACE
OWNED)
CORONATION PLAZA:
FREEHOLD; OTHERS: 390,000 SF $32.0M
GROSS FLOOR AREA FY2017 TOTAL REVENUE
30-99
LEASE TENURE
YEARS (APPROXIMATE)
The portfolio of strata assets comprise a mixture of strata-titled The acquisition of strata assets in January 2017 is in tandem
units within shopping malls and HDB sites in various locations with NE’s aim to create a greater social impact to do good by
across Singapore. There is a total of 37 strata-titled units providing access to the social enterprises to meet pressing
with net lettable area ranging from approximately 1,000sf to social needs in areas like cost of living, health and ageing, and
38,000sf. These strata spaces are leased mainly to FP for their ensuring a good start for every child.
retail operations.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 19PROPERTY PROFILE
ONE MARINA BOULEVARD
$650.0M 100 %
OWNERSHIP
430,000 SF $30.8M
APPRAISED VALUE NET LETTABLE AREA FY2017 TOTAL REVENUE
(APPROXIMATE)
99 YEARS
COMMENCING
100 % 520,000
GROSS FLOOR AREA
SF
OCCUPANCY RATE
FROM 7 JANUARY 2002 (APPROXIMATE)
LEASE TENURE
One Marina Boulevard (OMB), a premium Grade A office, is renovation of the main lobby, basement area, toilets, and
located at the intersection of Marina Boulevard and Collyer improvement to the traffic flow at the drop-off area. The
Quay, and it is within the Central Business District (CBD) of initiatives were completed in late 2017. As part of the asset
Singapore. enhancement initiative, OMB introduced self-help kiosks for
visitors to register themselves when they visit offices in OMB.
OMB embarked on asset enhancement initiatives in 2016 An alfresco dining concept was also introduced at its main
which involved the upgrading of the lift lobbies, lift interiors, lobby for people to unwind after a hectic day at work.
20 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017FINANCIAL STATEMENTS
22 Directors’ Statement
24 Independent Auditors’ Report
29 Statement of Financial Position
30 Consolidated Statement of Comprehensive Income
31 Statement of Changes in Equity
33 Consolidated Statement of Cash Flows
34 Notes to the Financial Statements
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 21DIRECTORS’
STATEMENT
YEAR ENDED 31 DECEMBER 2017
The Directors present this annual report to the members together with the audited financial statements of the Co-operative for
the financial year ended 31 December 2017.
(a) the financial statements set out on pages 29 to 72 are drawn up in accordance with the provisions of the Co-operative
Societies Act, Chapter 62 (the “Act”) and Singapore Financial Reporting Standards, so as to give a true and fair view of
the financial position of the Group and of the Co-operative as at 31 December 2017, and of the financial performance,
changes in equity and cash flows of the Group and of the results and changes in equity of the Co-operative for the year
ended 31 December 2017;
(b) at the date of this statement, there are reasonable grounds to believe that the Co-operative will be able to pay its debts
as and when they fall due; and
(c) the receipt, expenditure and investment of monies, acquisition and disposal of assets made by the Co-operative during the
year ended 31 December 2017 have been made in accordance with the By-Laws of the Co-operative and the provisions
of the Act.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
(a) Directors
The Directors of the Co-operative in office at the date of this statement are as follows:
May Ng Bee Bee Chairman
Wong Heng Tew Director
Willy Shee Ping Yah Director
Ng Eng Kiong Director
Soong Hee Sang Director
Tan Kian Huay Director
Yeo Chun Fing Director
Lim Kok Guan Director
Adeline Sum Wai Fun Director
(b) Arrangements to enable Directors to acquire shares or debentures
Neither at the end of nor at any time during the financial year was the Co-operative a party to any arrangement whose
object is to enable the Directors of the Co-operative to acquire benefits by means of the acquisition of shares in or
debentures of the Co-operative or any other body corporate.
(c) Directors’ interests in shares or debentures
According to the register of shareholdings kept by the Co-operative, no Director who held office at the end of the financial
year had interests in shares of the Co-operative, or of related corporations, either at the beginning of the financial year
or at the end of the financial year.
(d) Share options
There were no share options granted by the Co-operative during the financial year.
There were no shares issued during the financial year by virtue of the exercise of options to take up unissued shares of
the Co-operative.
There were no unissued shares of the Co-operative under options as at the end of the financial year.
22 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017DIRECTORS’
STATEMENT
YEAR ENDED 31 DECEMBER 2017
(e) Auditors
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
May Ng Bee Bee
Director
Wong Heng Tew
Director
Singapore
3 April 2018
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 23INDEPENDENT
AUDITORS’ REPORT
MEMBERS OF THE CO-OPERATIVE
MERCATUS CO-OPERATIVE LIMITED
Report on the financial statements
Opinion
We have audited the financial statements of Mercatus Co-operative Limited (‘the Co-operative’) and its subsidiaries (‘the Group’),
which comprise the consolidated statement of financial position of the Group and the statement of financial position of the
Co-operative as at 31 December 2017, the consolidated statement of comprehensive income, consolidated statement of changes
in equity and consolidated statement of cash flows of the Group and statement of comprehensive income and statement of
changes in equity of the Co-operative for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, as set out on pages 29 to 72.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position,
statement of comprehensive income and statement of changes in equity of the Co-operative are properly drawn up in accordance
with the provisions of the Co-operative Societies Act, Chapter 62 (‘the Act’) and Financial Reporting Standards in Singapore
(‘FRSs’) so as to give a true and fair view of the state of affairs of the Group and the Co-operative as at 31 December 2017 and of
the results, changes in equity and cash flows of the Group and of the results and changes in equity of the Co-operative for the
year ended on that date.
Basis for opinion
We conducted our audit in accordance with Singapore Standards on Auditing (‘SSAs’). Our responsibilities under those standards
are further described in the ‘Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are
independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional Conduct
and Ethics for Public Accountants and Accounting Entities (‘ACRA Code’) together with the ethical requirements that are relevant
to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
24 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017INDEPENDENT
AUDITORS’ REPORT
MEMBERS OF THE CO-OPERATIVE
MERCATUS CO-OPERATIVE LIMITED
Impairment assessment of investment properties ($3,970 million as at 31 December 2017) (Refer to Note 5 to the financial
statements)
The key audit matter How the matter was addressed in our audit
The Group owns a portfolio of investment properties Where independent professional valuers are engaged to
comprising retail and office units, constituting 80% of the appraise the valuations of the Group’s properties, we have
total assets as at 31 December 2017. These properties are assessed the appropriateness of the valuation methodologies
carried at cost and are subject to an annual review to assess and accompanying assumptions used by the valuers, taking
whether or not they may be impaired. into consideration available industry data and prevailing
market conditions.
The Group engages external valuers to appraise the valuations
of these properties, and uses such valuation reports to For properties with indicators of impairment noted, we
determine whether the properties are at risk of being impaired evaluated the methodologies and assumptions applied
i.e. an indication of impairment is noted when the external in the estimation of the properties’ recoverable amount.
valuation of the property is lower than the property’s carrying These include comparing the key assumptions supporting
amount. management’s value-in-use calculations, particularly the
forecasted cash flows, discount rates, terminal growth rates,
The properties at risk of being impaired are then subject and average revenue growth to available market data.
to a detailed impairment review whereby their recoverable
amounts are estimated. Findings:
The Group uses a combination of internal and external We found that the methodologies used by the external valuers
valuations in estimating the recoverable amount of its were consistent with market practices and the assumptions
properties, which is determined to be the higher of the fair applied were comparable to market data. The key assumptions
value less costs to sell and value-in-use of these properties. supporting management’s value-in-use calculations were also
The fair values of the properties are determined based on the in line with the historical trends achieved on the properties,
independent professional valuations undertaken, whereas the Group’s plans for the properties and available market data.
the value-in-use estimate of the properties are derived from
discounted cash flow forecasts prepared by management.
The estimation of the recoverable amount of the properties
involves the determination of valuation methodologies,
and the use of estimates and assumptions. Changes to the
estimates and assumptions may have a significant impact to
the recoverable amounts.
Other information
Management is responsible for the other information contained in the annual report. Other information is defined as all information
in the annual report other than the financial statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 25INDEPENDENT
AUDITORS’ REPORT
MEMBERS OF THE CO-OPERATIVE
MERCATUS CO-OPERATIVE LIMITED
Responsibilities of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Act and FRSs, and for such internal controls as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal controls.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
26 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017INDEPENDENT
AUDITORS’ REPORT
MEMBERS OF THE CO-OPERATIVE
MERCATUS CO-OPERATIVE LIMITED
Auditors’ responsibilities for the audit of the financial statements (Continued)
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal controls that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’
report unless the law or regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Opinion
In our opinion:
(a) the accounting and other records of those subsidiary corporations incorporated in Singapore of which we are the auditors
have been properly kept in accordance with the Singapore Companies Act, Chapter 50;
(b) the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the Co-operative during
the year are, in all material respects, in accordance with the By-laws of the Co-operative and the provisions of the Act;
and
(c) proper accounting and other records have been kept by the Co-operative.
Basis for opinion
We conducted our audit in accordance with SSAs. Our responsibilities under those standards are further described in the ‘Auditors’
responsibilities for the compliance audit’ section of our report. We are independent of the Group in accordance with the ACRA
Code together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on management’s compliance.
Management’s responsibility for compliance with legal and regulatory requirements
Management is responsible for ensuring that the receipt, expenditure, investment of moneys and the acquisition and disposal
of assets, are in accordance with the By-laws of the Co-operative and the provisions of the Act. This responsibility includes
implementing accounting and internal controls as management determines are necessary to enable compliance with the By-laws
of the Co-operative and the provisions of the Act.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 27INDEPENDENT
AUDITORS’ REPORT
MEMBERS OF THE CO-OPERATIVE
MERCATUS CO-OPERATIVE LIMITED
Auditors’ responsibility for the compliance audit
Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements. We
planned and performed the compliance audit to obtain reasonable assurance about whether the receipt, expenditure, investment
of moneys and the acquisition and disposal of assets, are in accordance with the By-laws of the Co-operative and the provisions
of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipt, expenditure, investment
of moneys and the acquisition and disposal of assets; and assessing the risks of material misstatement of the financial statements
from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls.
Because of the inherent limitations in any accounting and internal control system, non-compliances may nevertheless occur and
not be detected.
The engagement partner on the audit resulting in this independent auditors’ report is Yeo Lik Khim.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
3 April 2018
28 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017STATEMENT OF
FINANCIAL POSITION
AS AT 31 DECEMBER 2017
Note Group Co-operative
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Non-current assets
Property, plant and equipment 4 3,543 7,079 419 2,155
Investment properties 5 3,970,316 1,321,498 – 563,951
Investment in subsidiaries 6 – – 692,933 111,643
Investment in an associate 7 2,234 – – –
Investment in a joint venture 8 362,912 376,186 – –
Other investments 9 260,000 – – –
4,599,005 1,704,763 693,352 677,749
Current assets
Other investments 9 195,000 – – –
Trade and other receivables 10 16,925 3,364 3,919,268 1,020,971
Prepayments 285 46 10 32
Cash and cash equivalents 11 156,941 95,799 68,747 61,337
369,151 99,209 3,988,025 1,082,340
Total assets 4,968,156 1,803,972 4,681,377 1,760,089
Non-current liabilities
Rental deposits 31,107 14,174 – 8,471
Loans and borrowings 13 2,333,000 350,000 2,158,000 350,000
Trade and other payables,
including derivatives 14 1,287 639 38 436
2,365,394 364,813 2,158,038 358,907
Current liabilities
Rental deposits 19,573 3,043 – 2,214
Shareholders’ loans 12 – 448,313 – 448,313
Loans and borrowings 13 175,000 113,875 – 113,875
Trade and other payables 14 50,000 43,372 390,993 40,332
244,573 608,603 390,993 604,734
Total liabilities 2,609,967 973,416 2,549,031 963,641
Net assets 2,358,189 830,556 2,132,346 796,448
Equity
Membership shares 15 1,713,857 640,393 1,713,857 640,393
Accumulated profits/(losses) 52,429 4,978 53,388 (21,918)
Other reserves 16 390,218 185,185 365,101 177,973
Equity attributable to members of
the Co-operative 2,156,504 830,556 2,132,346 796,448
Non-controlling interest 201,685 – – –
Total equity 2,358,189 830,556 2,132,346 796,448
The accompanying notes form an integral part of these financial statements.
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017 29CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2017
Note Group Co-operative
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Revenue 17 193,473 77,146 222 56,739
Other income 18 12,415 4,909 16,848 4,012
Depreciation expenses (48,282) (16,666) (229) (9,223)
Property tax (16,699) (6,758) (33) (6,064)
Other expenses 19 (46,374) (26,375) (9,813) (19,584)
Finance income 20 420 185 107,784 16,535
Finance costs 20 (32,063) (44,055) (22,665) (44,055)
Share of results of joint venture 8 19,226 19,568 – –
Profit/(loss) before tax
and contributions 82,116 7,954 92,114 (1,640)
Income tax expense 21 (2) (6) – –
Profit/(loss) before contributions 82,114 7,948 92,114 (1,640)
Contributions to:
– Central Co-operative Fund 22 (50) – (25) –
– Singapore Labour Foundation 22 (19,648) – (18,323) –
Profit/(loss) for the year 62,416 7,948 73,766 (1,640)
Profit/(loss) attributable to:
Members of the Co-operative 62,416 7,948 73,766 (1,640)
Non-controlling interests – – – –
62,416 7,948 73,766 (1,640)
Profit/(loss) for the year 62,416 7,948 73,766 (1,640)
Other comprehensive income
Item that is or may be reclassified
subsequently to profit or loss:
Effective portion of changes in
fair value of cashflow hedge (38) – (38) –
Total comprehensive income for
the year 62,378 7,948 73,728 (1,640)
Total comprehensive income
attributable to:
Members of the Co-operative 62,378 7,948 73,728 (1,640)
Non-controlling interests – – – –
Total comprehensive income for
the year 62,378 7,948 73,728 (1,640)
The accompanying notes form an integral part of these financial statements.
30 MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017Accumulated Asset Non-
Membership profits/ Capital replacement Hedging controlling
Note shares (losses) reserve reserve reserve interest Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Group
At 1 January 2016 49,813 5,782 – – – – 55,595
Total comprehensive income for the year
Profit for the year – 7,948 – – – – 7,948
Transactions with members, recognised
directly in equity
Contributions by and distributions
to members
Issuance of shares 15 590,580 – – – – – 590,580
Changes in shareholdings 16 – – 176,433 – – – 176,433
Transfers 16 – (8,752) – 8,752 – – –
Total transactions with members 590,580 (8,752) 176,433 8,752 – – 767,013
At 31 December 2016 640,393 4,978 176,433 8,752 – – 830,556
At 1 January 2017 640,393 4,978 176,433 8,752 – – 830,556
Total comprehensive income for the year
Profit for the year – 62,416 – – – – 62,416
Other comprehensive income
Effective portion of changes in fair value of
cashflow hedge – – – – (38) – (38)
Total other comprehensive income – – – – (38) – (38)
Total comprehensive income for the year – 62,416 – – (38) – 62,378
Transactions with members, recognised
directly in equity
Contributions by and distributions
to members
Issuance of shares 15 1,073,464 – – – – – 1,073,464
Changes in shareholdings 16 – – 190,106 – – 201,685 391,791
Transfers 16 – (14,965) – 14,965 – – –
Total transactions with members 1,073,464 (14,965) 190,106 14,965 – 201,685 1,465,255
At 31 December 2017 1,713,857 52,429 366,539 23,717 (38) 201,685 2,358,189
The accompanying notes form an integral part of these financial statements.
YEAR ENDED 31 DECEMBER 2017
CHANGES IN EQUITY
STATEMENT OF
MERCATUS CO-OPERATIVE LIMITED ANNUAL REPORT 2017
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