ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 51 NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION ESR Interim Report 2020 11. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2020 31 December 2019 (Unaudited) (Audited) US$’000 US$’000 Unquoted equity interests, at fair value (i) 611,234 589,417 Note: (i) The fair value of these investments is estimated based on the Group’s share of the net asset value of the investment funds and associates. In accordance with the exemption in IAS 28 Investments in associates, the Group does not account for its investments in associates and joint venture using equity method if the Group acts as investment fund managers. Instead, the Group has elected to measure its investments in associates and joint ventures at fair value through profit or loss in accordance with IFRS 9. This exemption is related to the fact that fair value measurement provides more useful information for users of the financial statements than application of the equity method. This is an exemption from the requirement to measure interests in associates using the equity method, rather than an exception to the scope of IAS 28 for the accounting for associates and a joint venture. Particulars of the material associates and a joint venture are summarised below: Name of associates and joint venture Principal activity Country of incorporation/ registration Effective ownership interest 30 June 2020 31 December 2019 % % Redwood Fujiidera Pte. Ltd. Investment holding Singapore 33.18 33.18 RW Midori-Ku Pte. Ltd. Investment holding Singapore 40.00 40.00 RW Noda Pte. Ltd. Investment holding Singapore 40.00 40.00 RW Chigasaki Pte. Ltd. Investment holding Singapore 20.10 20.10 Redwood Kawasaki Pte. Ltd. Investment holding Singapore 20.10 20.10 RW Moriya Pte. Ltd. Investment holding Singapore 20.10 20.10 ESR Japan Core Fund Limited Partnership Investment holding Singapore 29.10 29.10 ESR India Logistics Fund Pte. Ltd. (ii) Investment holding Singapore 50.00 100.00 Jiangsu Yitian Warehousing Service Co., Ltd. Warehousing business China 16.25 16.25 Taicang Mingzhan Logistics Company Limited Warehousing business China 16.25 16.25 Shanghai Fengyuan Logistic Co., Ltd. Warehousing business China 16.25 16.25 Note: (ii) On 10 June 2020, ESR India Logistics Fund Pte Ltd completed 50% share allotment to the other joint venture partner. Financial assets at fair value through profit or loss of US$41,776,000 (31 December 2019: nil) were pledged to secure bank and other borrowings granted to the Group (note 15).