Assets held for sale and discontinued operations

At December 31, 2018, 2017 and 2016, no assets and liabilities were classified as held for sale.

For the years ended December 31, 2018, 2017 and 2016, the results of operations of Ubud Hanging Gardens, Bali, Indonesia and the Porto Cupecoy development on the Dutch side of St Martin, French West Indies have been presented as discontinued operations.

During the year ended December 31, 2017, a sale was completed on the shares in Northern Belle Limited, a wholly owned subsidiary that owns the Northern Belle rolling stock. During the year ended December 31, 2016, a sale was completed on the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia.

(a) Properties sold: Northern Belle and Great South Pacific Express

On November 2, 2017, Belmond completed the sale of the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,300,000 as at date of sale). A loss of $753,000 arose on disposal and is included within gain/(loss) on disposal of property, plant and equipment and equity method investments in the statements of consolidated operations for the year ended December 31, 2017.

The following is a summary of net assets sold and the loss recorded on sale for Belmond Northern Belle:



Year ended December 31,	2017
	Northern Belle
	November 2, 2017
	$'000

Property, plant & equipment	3,518
Deferred income taxes	(379	)
Net working capital	110
Net assets	3,249
Transfer of foreign currency translation loss	690
	3,939

Consideration:
Cash	3,300
Less: Working capital adjustment	(94	)
Less: Costs to sell	(20	)
	3,186

Loss on sale	(753	)

On April 19, 2016, Belmond completed the sale of the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia for consideration of $2,362,000 to the Company’s PeruRail joint venture. The carriages were sold at their carrying value and no gain or loss arose on disposal.

(b) Results of discontinued operations

Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following the owner's unannounced dispossession of Belmond from the hotel in November 2013, however, Belmond was unable to continue to operate the hotel. Belmond believed that the owner's actions were unlawful and constituted a wrongful dispossession and has pursued its legal remedies under the lease. See Note 21. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction.

The Porto Cupecoy development was sold in January 2013, with the final unit disposed of in September 2014. Residual costs relating to the sale of Porto Cupecoy are presented within discontinued operations for all periods shown.

Summarized results of the properties classified as discontinued operations for the years ended December 31, 2018, 2017 and 2016 are as follows:



	Year ended December 31, 2018
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000

Revenue	—	—		—

Losses before tax, gain on sale and impairment	—	(10	)	(10	)

Losses before tax	—	(10	)	(10	)

Net losses from discontinued operations	—	(10	)	(10	)



	Year ended December 31, 2017
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000

Revenue	—	—	—

Earnings before tax, gain on sale and impairment	100	22	122

Earnings before tax	100	22	122

Net earnings from discontinued operations	100	22	122



	Year ended December 31, 2016
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000

Revenue	—	—	—

Earnings before tax, gain on sale and impairment	69	963	1,032

Earnings before tax	69	963	1,032

Net earnings from discontinued operations	69	963	1,032

The results of discontinued operations for the year ended December 31, 2018 included losses of $10,000 at Porto Cupecoy. The years ended December 31, 2017 and 2016 included earnings of $22,000 and $963,000 respectively, at Porto Cupecoy due to the release of a provision in respect of tax claims from which Belmond believes it is now effectively discharged. In addition, the results of discontinued operations for the years ended December 31, 2017 and 2016 included earnings of $100,000 and $69,000, respectively, due to the partial release of legal fee accruals in relation to Ubud Hanging Gardens, where Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 21.