ESR Group Limited Interim Report 2023 Notes to Condensed Consolidated Financial Information 30 June 2023 79 20. DISPOSAL GROUP HELD FOR SALE (continued) Hong Kong warehousing facility (continued) As at 30 June 2023, the bank and other borrowings of US$111,203,000 bears floating interest rate with maturity in August 2023. As of 30 June 2023, the interest rate was 6.815% per annum. The loan was refinanced for another five years in August 2023. The investment property with a fair value of US$251,844,000 was pledged to secure bank and other borrowings. The fair value of the investment properties under the disposal group held for sale as at 30 June 2023 was based on the valuation conducted by Jones Lang LaSalle IP, Inc using market comparison approach (Level 2). Higashi Ogishima On 4 August 2023, a wholly-owned subsidiary of the Company entered into a Shareholder Agreement with a global institutional investor in connection with the development of a new distribution centre in Japan. The Group will have 40% interest in the new joint venture (“JV Company”). On the same day, a certain subsidiary of the Company and the JV Company entered into the Sale and Purchase Agreement in relation to the sale of the entire issued share capital of RW Higashi SPE 1 Pte. Ltd. and HGS Japan Pte. Ltd. (the “Target Entities”). The Target Entities are subsidiaries of the Company as of 30 June 2023. Pursuant to the Sale and Purchase Agreement, all assets and liabilities of the Target Entities (including the investment property) were reclassified as disposal group held for sale as at 30 June 2023. Details of assets and liabilities classified as held for sale as at 30 June 2023 are as follows: As at 30 June 2023 US$’000 Assets Investment properties 200,012 Cash and bank balances 11,197 Other assets 337 Assets of a disposal group classified as held for sale 211,546 Liabilities Bank and other borrowings (73,373) Deferred tax liabilities (11,466) Other liabilities (6,090) Liabilities directly associated with assets classified as held for sale (90,929) Net assets directly associated with the disposal group 120,617 As at 30 June 2023, the bank and other borrowings of US$73,373,000 bears floating interest rate with maturity in June 2025. As of 30 June 2023, the interest rate was 0.57% per annum. The investment property with a fair value of US$200,012,000 was pledged to secure bank and other borrowings. The fair value of the investment properties under the disposal group held for sale as at 30 June 2023 was based on the valuation conducted by Cushman & Wakefield K.K. using discounted cashflow approach (Level 3).
RkJQdWJsaXNoZXIy MTIwODcxMw==