Notes to Condensed Consolidated Financial Information 30 June 2024 83 ESR Group Limited Interim Report 2024 22. DISPOSAL GROUP HELD FOR SALE (continued) Cosmosquare OS2 and OS3 During the period, a fund managed by the Group, entered into a joint venture agreement (“JVA”) to dispose of a 51% stake in JP DC OS 1 Pte. Ltd. (the entity that holds investment property named OS1) to a capital partner. This transaction is part of a broader collaboration between the Group and the capital partner to jointly develop and operate the data centers (namely, OS1, OS2 and OS3). In accordance with the JVA, the Group and the capital partner will also enter into joint venture agreements to acquire OS2 and OS3, which are investment properties held by Skye TMK, a wholly-owned subsidiary of the Group. Due to this, the entities holding OS2 and OS3 are classified as disposal group held for sale as of 30 June 2024. Details of assets and liabilities classified as held for sale as at 30 June 2024 are as follows: As at 30 June 2024 US$’000 Assets Investment properties 82,382 Cash and bank balances 3,716 Other assets 65 Assets of a disposal group classified as held for sale 86,163 Liabilities Bank and other borrowings (36,975) Other liabilities (5,288) Liabilities directly associated with assets classified as held for sale (42,263) Net assets directly associated with the disposal group 43,900 As at 30 June 2024, the bank and other borrowings of US$36,975,000 bears floating interest rate with maturity on 31 March 2026. As of 30 June 2024, the interest rate was 1.95% per annum. The investment property with a fair value of US$82,382,000 was pledged to secure bank and other borrowings. The fair value of the investment properties for OS2 as at 30 June 2024 was categorised within Level 2 of the fair value hierarchy as it was based on an agreed transacted price. The fair value of the investment properties for OS3 as at 30 June 2024 was categorised within Level 3 of the fair value hierarchy as it was based on the valuation conducted by Cushman & Wakefield K.K. using discounted cash flow valuation methodology.
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