Annual Report 2019

190 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 13 Investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (continued) (c) Fair value measurement of properties (continued) (i) Fair value hierarchy (continued) 2019 Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’ 000 $’ 000 $’ 000 $’ 000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 3,148,750 – – 3,148,750 – industrial property 1,416,000 – – 1,416,000 Investment property under development in Hong Kong 4,560,000 – – 4,560,000 2018 Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’ 000 $’ 000 $’ 000 $’ 000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 3,530,470 – – 3,530,470 – industrial property 1,497,000 – – 1,497,000 Investment property under development in Hong Kong 4,825,000 – – 4,825,000 During the years ended 31 December 2019 and 2018, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group’s policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. The valuations were carried out by an independent firm of surveyors, Centaline Surveyors Limited, who have among their staff members of the Hong Kong Institute of Surveyors with recent experience in the locations and categories of properties being valued. The Group’s management have had discussions with the surveyors on the valuation assumptions and valuation results when the valuation was performed at each annual reporting date. As at 31 December 2019, investment property under development of $2,531,596,000 (2018: $2,301,060,000) related to the Group’s interests in a joint operation.