ESR Group Limited Annual Report 2022 Notes to the Consolidated Financial Statements 31 December 2022 213 40. RELATED PARTY TRANSACTIONS In addition to the transactions and balances detailed elsewhere in the financial statements, the Group had the following material transactions with related parties during the years ended 31 December 2022 and 2021: (a) Transactions with related parties: 2022 2021 US$’000 US$’000 Associates: — Management fee income (note (i)) 81,456 50,444 — Construction revenue — 9,755 Joint ventures: — Management fees income (note (i)) 122,342 87,192 — Repayment from/(Advances to) joint ventures (note (ii)) (3,784) 9,084 — Repayment from joint ventures (note (iii)) 63,120 29,430 — Investments in debentures issued by joint ventures (note (iv)) 6,482 9,537 — Interest income on investment in debentures (note (iv)) 1,212 1,851 — Construction revenue — 307 Entity associated with Directors: — Loans (50,000) — — Repayment 50,000 — — Interest 578 — Directors: — Interest 464 452 Notes: (i) The Group and its subsidiaries entered into agreements with joint ventures (including their operating subsidiaries) and some associates to charge management services, which comprised the following: a) Land acquisition fee at a certain percentage of the net land cost; b) Development fee at a certain percentage of the total budget of project development cost during the construction period; c) Asset management fee at a certain percentage of the aggregate costs of the project before stabilisation or at fair value after stabilisation; and d) Leasing fee in respect of each new lease entered into. (ii) Repayment from/(advances to) related parties and joint ventures are unsecured, interest-free and repayable on demand. The outstanding amount due from related parties as of 31 December 2022 is US$4,105,000 (2021: US$4,064,000). (iii) During the year, the Group received repayment of US$63,120,000 from the subsidiaries disposed to joint ventures of the Group. The amount was paid to the Group after disposal was completed. (iv) Investments in debentures issued by joint ventures and related interest income are relating to Group’s investments in Compulsorily Convertible Debentures, Optionally Convertible Debentures and Non-convertible Debentures as disclosed in Note 21. (b) Commitments with related parties The Group expects the total capital commitment to associates and joint ventures to be US$301,335,000 and US$386,099,000 (2021: US$255,187,000 and US$417,249,000), respectively. STRATEGIC REPORT FINANCIAL STATEMENT CORPORATE GOVERNANCE
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