NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 15. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES As at 31 December As at 31 December 2021 2020 US$’000 US$’000 Share of net assets from joint ventures 878,187 942,680 Share of net assets from associates 313,076 86,754 Goodwill on retaining interests in joint ventures 2 2 1,191,265 1,029,436 Shareholder’s loan to a joint venture 139,752 52,854 1,331,017 1,082,290 Shareholder’s loan to a joint venture is unsecured and interest-free. It is part of the capital commitment to the joint venture and is only repayable upon mutually agreed by all joint venture parties. Accordingly, the shareholder’s loan is considered as part of the Group’s investment in the joint venture. Particulars of the Group’s material joint ventures and associate are as follows: Percentage of Name Place of registration and business Ownership interest Voting power Profit sharing Principal activities Classified as investment in e-Shang Star Cayman Limited (“e-Shang Star”) Cayman Islands 25.6455% 33.33% 25.6455% Investment holding Joint venture Sunwood Star Pte. Ltd. (“Sunwood Star”) Singapore 20.00% 33.33% 20.00% Investment holding Joint venture ESR GIC Limited (“ESR-GIC”) British Virgin Islands 51.00% 50.00% 51.00% Investment holding Joint venture ESR Australia Logistics Partnership (“EALP”) Australia 10.00% 10.00%* 10.00% Investment holding Associate ESR Milestone Partnership (“EMP”) Australia 20.00% 20.00% 20.00% Investment holding Associate The joint ventures and associates are accounted for using equity method. Unanimous agreements of all joint venture parties are required for investment in joint ventures. * Unanimous agreement from all shareholders are required for certain matters. Investments in joint ventures and associates with a carrying amount of nil (2020: US$115,899,000) were pledged to secure certain bank and other borrowings of the Group (note 25). E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 185
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