NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 38. RELATED PARTY TRANSACTIONS In addition to the transactions and balances detailed elsewhere in the financial statements, the Group had the following material transactions with related parties during the years ended 31 December 2021 and 2020: (a) Transactions with related parties: 2021 2020 US$’000 US$’000 Associates: – Management fee income (note (i)) 50,444 36,515 – Construction revenue 9,755 8,756 Joint ventures: – Management fees income (note (i)) 87,192 61,276 – Repayment from/(Advances to) joint ventures (note (ii)) 9,084 (100,371) – Repayment from a joint venture (note (iii)) 29,430 109,935 – Investments in debentures issued by joint ventures (note (iv)) 9,537 3,491 – Interest income on investment in debentures (note (iv)) 1,851 574 – Construction revenue 307 32,169 – Sale of other assets – 20,540 Directors: – Loans to Directors (note 38 (d)) – 9,200 – Interest receivables from Directors (note 38 (d)) 452 396 Notes: (i) The Group and its subsidiaries entered into agreements with joint ventures (including their operating subsidiaries) and some associates to charge management services, which comprised the following: a) Land acquisition fee at a certain percentage of the net land cost; b) Development fee at a certain percentage of the total budget of project development cost during the construction period; c) Asset management fee at a certain percentage of the aggregate costs of the project before stabilisation or at fair value after stabilisation; and d) Leasing fee in respect of each new lease entered into. (ii) Repayment from/(advances to) related parties and advances from/(repayment to) joint ventures are unsecured, interest-free and repayable on demand. The maximum amount due from related parties outstanding during the year ended 31 December 2021 was US$4,064,000 (2020: US$115,534,000). (iii) During the year, the Group received repayment of US$29,430,000 from the subsidiaries disposed (note 34) to a financial asset at fair value through profit or loss and a joint venture of the Group. The amount was paid to the Group after disposal was completed. (iv) Investments in debentures issued by joint ventures and related interest income are relating to Group’s investments in Compulsorily Convertible Debentures, Optionally Convertible Debentures and Non-convertible Debentures as disclosed in Note 21. (b) Commitments with related parties The Group expects the total capital commitment to associates and joint ventures to be US$255,187,000 and US$417,249,000 (2020: US$43,630,000 and US$916,809,000), respectively. 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 1 219
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