Tropicana Corporation Berhad Annual Report 2020

16. INVENTORIES (CONT'D.) (b) Property development costs Group 2020 2019 RM'000 RM'000 Cost At 1 January 423,377 1,537,766 Development costs incurred 113,694 161,972 Transfers from/(to): Land held for property development (Note 16(a)) 9,896 (389,031) Investment properties (Note 17) (10,739) (525,742) Property, plant and equipment (Note 15) (1,693) (50,111) Completed development properties (19,703) (155,405) Contract cost assets (Note 25) (148,188) (139,076) Write off (Note 9) – (16,996) At 31 December 366,644 423,377 Finance costs capitalised during the financial year under property development costs amounted to RM6,503,000 (2019: RM42,119,000). (c) Land held for sales Group 2020 2019 RM'000 RM'000 Cost At 1 January 131,350 – Acquisition of subsidiaries – 74,884 Addition 3,489 – Disposal (Note 5) (153,508) (13,484) Transfer from land held for property development (Note 16(a)) 38,987 69,950 At 31 December 20,318 131,350 Certain inventories with carrying amount of RM3,555,249,000 (2019: RM1,737,409,000) are pledged as securities for bank borrowings as disclosed in Note 32. 17. INVESTMENT PROPERTIES Freehold Leasehold Construction land and land and in-progress buildings buildings ("CIP") Total RM'000 RM'000 RM'000 RM'000 Group At 1 January 2020 148,733 1,088,465 139,836 1,377,034 Additions 15,077 18,403 31,993 65,473 Fair value adjustment: - gain (Note 6) 57,217 66,373 14,538 138,128 Reclassification – 81,373 (81,373) – Transfer from property development costs (Note 16(b)) – – 10,739 10,739 Transfer to property, plant and equipment (Note 15) – (11,326) – (11,326) Transfer from land held for property development (Note 16(a)) 34,433 – – 34,433 At 31 December 2020 255,460 1,243,288 115,733 1,614,481 At 1 January 2019 178,733 314,436 81,563 574,732 Additions – 346,581 54,353 400,934 Fair value adjustment: - (loss)/gain (Note 9) – (871) 197 (674) Transfer from property development costs (Note 16(b)) – 522,019 3,723 525,742 Transfer to assets classified as held for sale (Note 27) (30,000) (45,700) – (75,700) Disposals – (48,000) – (48,000) At 31 December 2019 148,733 1,088,465 139,836 1,377,034 Finance costs capitalised during the financial year under investment properties under construction amounted to RM1,263,000 (2019: RM nil). The carrying amounts of the investment properties pledged as securities for bank borrowings as disclosed in Note 32 are as follows: Group 2020 2019 RM'000 RM'000 Freehold land and buildings 265,050 132,000 Leasehold land and buildings 1,248,080 1,087,500 Construction in-progress 8,150 57,872 1,521,280 1,277,372 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 218 219