ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 50 10. INVESTMENTS IN JOINT VENTURES 30 June 2020 31 December 2019 (Unaudited) (Audited) US$’000 US$’000 Share of net assets 857,649 697,994 Goodwill on retaining interests in joint ventures 2 2 857,651 697,996 Shareholder loan to a joint venture 52,854 – 910,505 697,996 Shareholder loan to a joint venture is unsecured and interest-free. It is part of capital commitment to the joint venture and is only repayable upon mutually agreed by all joint venture parties. 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 are as follows: Name Share capital Place of registration and business Percentage of Principal activities Ownership interest Voting power Profit sharing e-Shang Star Cayman Limited (“e-Shang Star) US$5,145,167 Cayman Islands 25.62% 33.33% 25.62% Investment holding Sunwood Star Pte. Ltd. (“Sunwood Star”) US$812,905,879 Singapore 20.00% 33.33% 20.00% Investment holding ESR Australia Logistics Partnership (“EALP”) A$329,500,000 Australia 55.00% 50.00% 55.00% Investment holding The joint ventures are accounted for using equity method. Unanimous agreements from all joint venture parties are required for the above entities. Investment in joint ventures with carrying amount of US$116,444,000 (31 December 2019: nil) were pledged to secure bank and other borrowings granted to the Group (note 15).