Page 124 - S P Setia Annual Report 2013
P. 124

122 | Financial Statements S P SETIA BERHAD GROUP Annual Report 2013





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






5. cOnceSSiOn aSSetS
Group
2013 2012
Rm’000 Rm’000

cost
At 1 November 11,708 -
Additions 47,702 11,708
Transfer to property development costs (see note 15) (7,281) -
At 31 October 52,129 11,708

accumulated amortisation
At 1 November - -
Charge for the year - -
At 31 October - -

Net carrying amount at 31 October 52,129 11,708

The Group has entered into a service concession arrangement with Majlis Perbandaran Pulau Pinang (“MPPP”) to construct the subterranean
Penang International Convention & Exhibition Centre (“sPICE”) and complementary retail/F&B outlets/offces. The terms of the arrangement
also require the Group to improve and refurbish the existing Penang International Sports Arena indoor stadium and aquatic centre.

The terms of the arrangement allow the Group to operate sPICE for up to a period of thirty years (“Concession Period”), soon after the
completion of construction. Upon expiry of the concession arrangement, subject to the agreement between the Group and MPPP, the Group
may be able to operate sPICE for two further terms, consisting of a period of not less than ffteen years each.

The service concession arrangement also grants the Group the right to additional density for the Group’s development project within the
island of Pulau Pinang. Such development rights are limited to 1,500 residential units. The development rights are only exercisable during
the Concession Period and any right not exercised by the end of the Concession Period shall lapse.
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