S P Setia AR 2014 Background Image
Table of Contents Table of Contents
Previous Page  142 / 234 Next Page
Information
Show Menu
Previous Page 142 / 234 Next Page
Page Background

140 | S P SETIA BERHAD GROUP | Annual Report 2014

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2014

V. FINANCIAL STATEMENTS

5. CONCESSION ASSETS

Group

2014

2013

RM’000

RM’000

Cost

At 1 November

52,129

11,708

Additions

56,573

47,702

Transfer to property development costs

(see note 14)

(8,595)

(7,281)

At 31 October

100,107

52,129

Accumulated amortisation

At 1 November

-

-

Charge for the year

-

-

At 31 October

-

-

Net carrying amount at 31 October

100,107

52,129

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/offices. 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 fifteen 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.