49 (Expressed in Trinidad and Tobago Dollars) NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017 5 Property, plant and equipment (continued) In 2014, the National Insurance Board of Trinidad and Tobago initiated the development of lands previously held for investment situated at Queens Park East, Port of Spain. A decision was taken that the development will see about 40% of the structure being used for Head Office operations and the other 60% to generate rental revenue. As a result, reclassification of the investment property to property, plant and equipment was made. The construction started in March 2015, with the structure being a Class A building with Leed Silver certification and projected to cost $372 million with the construction completed in January 2017 and the building officially occupied in February 2017. 6 Investment properties Appreciation/ depreciation Reclassified 1 July 2016 Additions in fair value to PPE 2017 $’000 $’000 $’000 $’000 $’000 Buildings 114,500 – (16,650) – 97,850 Land 236,724 – (5,824) – 230,900 351,224 – (22,474) – 328,750 Appreciation/ depreciation 1 July 2015 Additions in fair value Adjustments 2016 $’000 $’000 $’000 $’000 $’000 Buildings 193,059 85,245 (17,500) (146,304) 114,500 Land 226,724 – 86,000 (76,000) 236,724 419,783 85,245 68,500 (222,304) 351,224 Rental income from investment properties during the year amounted to $5 million (2016: $6.7 million). Direct operating expenses incurred on investment properties during the year amounted to $3.48 million (2016: $5 million). The valuation of the investment properties was conducted as at June 2017 by an independent professional valuator in accordance with the Royal Institute of Chartered Surveyors valuation – professional standards. The Income Approach which considers a property’s potential cash flow and analyses the present worth of the anticipated future benefits to the owner over an assumed holding period was the methodology used to value the buildings.