ESR Group Limited Annual Report 2023 207 Notes to the Consolidated Financial Statements 31 December 2023 32. DISPOSAL GROUP HELD FOR SALE Disposal group held for sale is primarily related to the following portfolio of warehousing facilities: Hong Kong warehousing facility The Group has initiated the sale of a portfolio of warehousing facility (the “Target Entity”) in Hong Kong with potential investors. The Target Entity is a wholly-owned subsidiary of the Company as of 31 December 2023. As a result, all assets and liabilities of the Target Entity (including the investment property) were reclassified as disposal group held for sale as at 31 December 2023. Details of assets and liabilities classified as held for sale as at 31 December 2023 are as follows: As at 31 December 2023 US$’000 Assets Investment properties 253,574 Cash and bank balances 9,281 Other assets 285 Assets of a disposal group classified as held for sale 263,140 Liabilities Bank and other borrowings (124,159) Other liabilities (131,818) Liabilities directly associated with assets classified as held for sale (255,977) Net assets directly associated with the disposal group 7,163 As at 31 December 2023, the bank and other borrowings of US$124,159,000 bears floating interest rate with maturity in August 2028. As of 31 December 2023, the interest rate was 7.53% per annum. The investment property with a fair value of US$253,574,000 was pledged to secure bank and other borrowings. The fair value of the investment properties under the disposal group held for sale as at 31 December 2023 was based on the valuation conducted by Colliers International (Hong Kong) Limited using residual method on the development potential of the property conversion to the data centre (Level 2). CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
RkJQdWJsaXNoZXIy MTIwODcxMw==