text: **5.** **Investment Properties (continued)**
  
  For year ended December 31, 2013, interest costs associated with the general corporate borrowings used to fund development have been 
  capitalized to the respective development using the Company’s weighted average borrowing rate of 4.38% (December 31, 2012 ‑ 4.50%). 
  Interest costs associated with construction loans are capitalized to the respective development using the actual borrowing rate associated 
  with the loan. 
  
  Investment properties with a fair value of $1,432,731 at December 31, 2013, (December 31, 2012 ‑ $1,294,317) are pledged as collateral 
  against the company’s mortgages payable. 
  
  ***Valuation Process***
  
  The management group that determines the Company’s valuation policies and procedures for investment property valuations comprises 
  the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Each year, the CEO and CFO decide which external valuator to 
  appoint to be responsible for the external valuations of the Company’s properties. Selection criteria include market knowledge, reputation, 
  independence and whether professional standards are maintained. 
  
  The CEO and CFO decide each quarter after consultation with the Company’s external valuator and the Company’s finance department: 
  
  • whether a property’s fair value can be reliably determined (IPUC are valued at cost until such time as fair value becomes reliably 
  determinable); 
  
  • which valuation method should be applied for each property; and 
  
  •  the assumptions made for unobservable inputs that are used in the valuation methods. 