NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 20. OTHER INTANGIBLE ASSETS (continued) Notes: (continued) (ii) In January 2017, the Group had acquired Infinitysub Pte. Ltd. (“Infinitysub”), an asset management company providing trust management and property management services in Singapore. In October 2018, the Group had acquired Viva Industrial Trust Management Pte. Ltd. (“VITM”), an asset management company providing trust management services in Singapore. The trust management services are expected to continuously contribute to the net cash inflow of the Group. Both Infinitysub and VITM were consolidated as a single cash-generating unit namely Infinitysub asset management business pursuant to the merger of ESR-REIT and Viva Industrial Trust in October 2018. The Group’s trust management rights have indefinite useful lives and are allocated to the Group’s Infinitysub asset management business, which is treated as a cash-generating unit for impairment testing. Further details of the impairment test of the Infinitysub asset management business cash-generating unit are given in note 19. 21. OTHER NON-CURRENT ASSETS As at 31 December As at 31 December 2021 2020 US$’000 US$’000 Prepayments for acquiring land use rights 12,723 18,986 Rental income receivables 2,321 2,838 Due from non-controlling interests of subsidiaries 13,319 13,795 Due from joint ventures 974 2,002 Receivable from funds 7,207 – Rental deposits 2,541 2,306 Investment in Compulsorily Convertible Debentures (note (i)) 6,815 6,359 Investment in Optionally Convertible Debentures (note (ii)) 5,376 – Investment in Non-convertible Debentures 8,660 3,491 Input tax recoverable 19,004 10,369 Prepayment for construction 9,372 – Others 2,555 2,409 90,867 62,555 Notes: (i) The Group subscribed to the Compulsorily Convertible Debentures (“CCD”) issued by the Group’s joint ventures. The CCD shall be fully convertible into equity shares at or anytime before completion of 19 years and 364 days from the allotment date of the CCD. The conversion ratio of the CCD into equity shares would be 1:1 (i.e. one equity shares for each CCD allotted). The fair value measurement for the CCD has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used (see note 45). (ii) The Group subscribed to the Optionally Convertible Debentures (“OCD”) issued by the Group’s joint ventures. The OCD, at the request of the lender and consent of the borrower, shall be convertible into equity shares at any time before 3 years from the drawdown date, but before the date of completion of 6 years from the drawdown date. The OCD may be converted into equity shares in one or more tranches. The OCD shall convert into equity shares at the fair market value of the equity shares on the date of conversion of OCD into equity shares. The outstanding OCD that are neither converted nor redeemed, shall be compulsorily redeemed on the date of completion of 6 years from the drawdown date. The fair value measurement for the OCD has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used (see note 45). The balances due from non-controlling interests of subsidiaries are non-trade in nature and unsecured. The balance of US$7,504,000 bears interest of 4% per annum. The remaining balance is non-interest bearing. The balance due from joint ventures are non-trade in nature, unsecured and non-interest bearing. As at 31 December 2021 and 2020, other non-current assets of the Group were considered to be of low credit risk and thus the Group has assessed that the ECL for deposits was immaterial under the 12-month expected credit loss method. R E A C H I N G N E W H E I G H T S 196
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