ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 62 18. DISPOSAL OF SUBSIDIARIES (continued) During the six months ended 30 June 2020, the Group has, through its wholly-owned subsidiary ESR Queensland Hold Trust, entered into an agreement with a global institutional investor to dispose of the 45% interests in a subsidiary, which is ESR Australia Logistics Partnership. US$’000 Net assets disposed of: Cash and bank balances 14,279 Prepayments, trade and other receivables and other assets 1,458 Investment properties 508,480 Trade payables, accruals, other payables and income tax payable (13,758) Bank and other borrowings (270,588) Lease liabilities (11,494) 228,377 Gain on disposal of subsidiaries – 228,377 Satisfied by: Consideration receivable + 102,770 Investments in joint venture* 125,607 228,377 + Received in July 2020. * Subsequent to the disposal, the Group holds 55% interest in the disposed subsidiary, which is accounted as investment in joint venture. An analysis of the net outflow of cash and cash equivalents in respect of the disposal of subsidiaries is as follows: US$’000 Cash consideration – Cash and bank balances of disposed subsidiaries (14,279) Net outflow of cash and cash equivalents included in cash flows used in investing activities (14,279) 19. CONTINGENT LIABILITIES As at 30 June 2020, neither the Group nor the Company had any significant contingent liabilities.