ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 211 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 34. BUSINESS COMBINATION (continued) (c) Acquisition of subsidiaries that are not business Lekun Warehousing (Wuxi) Co., Ltd. (“Wuxi Lekun”) The Group, through its wholly-owned subsidiary, Zeta Offshore Holdings (BVI) Limited, entered into share purchase agreement with independent third-parties Barn Holding Pte. Limited and TCL Electronics Holdings Limited, to acquire 100% equity interests in LekunWarehousing (Wuxi) Co., Ltd. (“Wuxi Lekun”) for an aggregate purchase price of USD38,591,000 in cash. The acquisition of Wuxi Lekun was completed on 14 March 2019. On the acquisition date, there were no other material assets and liabilities carried by Wuxi Lekun other than cash and bank balances, bank and other borrowings and investment properties. The transaction was accounted for as an asset acquisition. Kawajima Distribution Centre (“Kawajima”) The Group entered into share purchase agreement with one of development funds, RW Kawajima TMK, to acquire 100% equity interests in Kawajima at an aggregate purchase price of USD82,673,000 in cash. The acquisition of Kawajima was completed on 20 August 2019. On the acquisition date, there were no other material assets and liabilities carried by Kawajima other than cash and bank balances, trade payables, accruals and other payables, and investment properties. The transaction was accounted for as an asset acquisition. Shanghai Yibian Logistic Technology Co., Ltd. (“Shanghai Yibian”) The Group entered into share purchase agreement with an independent third-party, Kerry Logistics (China) Limited, to acquire 100% equity interests in Shanghai Yibian (formerly known as Kerry Logistics (Waigaoqiao) Limited) at an aggregate purchase price of USD13,965,000 in cash. The acquisition of Shanghai Yibian was completed on 20 August 2019. On the acquisition date, there were no other material assets and liabilities carried by Shanghai Yibian other than cash and bank balances and investment properties. The transaction was accounted for as an asset acquisition. Langfang Hongke Real Estate Development Co., Ltd. (“Langfang Hongke”) The Company, through its wholly owned subsidiary, Crystal Offshore Holdings (BVI) Limited, entered into share purchase agreement with an independent third-party Chief Victory Global Limited, to acquire 100% equity interests in Langfang Hongke Real Estate Development Co., Ltd. (“Langfang Hongke”) at an aggregate purchase price of USD7,273,000 in cash. The acquisition of Langfang Hongke was completed on 23 September 2019.