ESR Group Limited Annual Report 2023 181 Notes to the Consolidated Financial Statements 31 December 2023 15. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES As at 31 December 2023 As at 31 December 2022 US$’000 US$’000 Share of net assets from joint ventures 948,256 916,766 Share of net assets from associates 1,791,795 1,637,406 Goodwill on interests in joint ventures and associates 130,582 2 2,870,633 2,554,174 Shareholder loan to joint ventures 510,922 401,642 3,381,555 2,955,816 Shareholder loan to joint ventures are unsecured and interest-free. It is part of the capital commitment to the joint ventures and is only repayable upon mutually agreed by all joint ventures partners. Accordingly, the shareholder loan is considered as part of the Group’s investments in the joint venture. Particulars of the Group’s material joint ventures and associates are as follows: Percentage of Name Place of registration and business Ownership interest Voting power Profit sharing Principal activities Classified as investment in e-Shang Star Cayman Limited (“e-Shang Star”) Cayman Islands 25.6455% 25.6455% 25.6455% Investment holding Joint venture Sunwood Star Pte. Ltd. (“Sunwood Star”) Singapore 20.00% 20.00% 20.00% Investment holding Joint venture ESR GIC Limited (“ESR-GIC”) British Virgin Islands 51.00% 51.00% 51.00% Investment holding Joint venture ESR Milestone Partnership (“EMP”) Australia 20.00% 20.00% 20.00% Investment holding Associate Cromwell Property Group Australia 30.69% 30.69% 30.69% Property investment, funds management, property management and property development Associate Kenedix, Inc Japan 30.00% 30.00% 30.00% Fund management Associate BW Industrial Development Joint Stock Company (“BW”) Vietnam 15.57% note (i) 15.57% Warehousing and storage business, property management and property development Associate note (i) — The Group has voting power of 15.57% at shareholder meeting, and 1 vote at board of director meeting. The joint ventures and associates are accounted for using equity method. Unanimous agreements of all joint venture parties are required for key investments and operational decisions in joint ventures. Investments in joint ventures and associates with a carrying amount of US$405,721,000 (2022: US$434,221,000) were pledged to secure certain bank and other borrowings of the Group (note 25). As of 31 December 2023, the fair value of a material associate based on its quoted market price was amounted to US$228,402,000 (2022: US$361,433,000). CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
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