Cost Accumulated
depreciation		   Net
book value		  
    Rm Rm   Rm  
5. INVESTMENT PROPERTY          
  2018          
  Freehold land and buildings 729 97   632  
    729 97   632  
  2017          
  Freehold land and buildings 845 108   737  
    845 108   737  
 

There are no assets encumbered.

  Freehold land 
and buildings 		  
  Rm   
Movement of net book value of investment property    
2018    
Net balance at 1 October 2017  737   
Additions  1   
Assets held for sale  (93)  
Other disposals and reclassification  (4)  
   641   
Depreciation (note 2) (9)  
Net balance at 30 September 2018  632   
2017      
Net balance at 1 October 2016  742   
Additions  3   
   745   
Depreciation (note 2) (8)  
Net balance at 30 September 2017  737   

The register of land and buildings is open for inspection at the registered office of the company.

2018

The fair value for the above freehold land and buildings as at 30 September 2018 amounted to R2 095 million as per the latest valuation (2017: R1 220 million).

The fair value measurement of the properties is considered a level 3 measurement in accordance with IFRS 13. The calculation of the fair values of the properties was based on the income approach method in which the estimated net annual rent for the forward period of 12 months is capitalised at an appropriate rate of interest to reflect the perceived risk in the investment. The average capitalisation rate applied in determining the properties fair value was 9.4%.