ESR IR 2021 - EN

75 ESR Interim Report 2021 Notes to Condensed Consolidated Financial Information 30 June 2021 21. RELATED PARTY TRANSACTIONS (continued) (a) Transactions with related parties: (continued) 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 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 fair value after stabilisation; and d) Leasing fee in respect of each new lease entered into. (ii) Advances to/(repayment from) joint ventures and advances from/(repayment to) joint ventures are unsecured, interest-free and repayable on demand. The outstanding amounts due from related parties as of 30 June 2021 is US$4,263,000 (30 June 2020: US$54,468,000). (iii) Investments in debentures issued by joint ventures and related interest income are relating to the Group’s investments in Compulsorily Convertible Debentures, Optionally Convertible Debentures and Non-convertible Debentures. (b) Commitments with related parties The Group’s capital commitment to associates and joint ventures as of 30 June 2021 are US$31,415,000 and US$720,619,000, respectively (31 December 2020: US$43,630,000 and US$916,809,000). (c) Compensation of key management personnel of the Group: For the six months ended 30 June 2021 2020 (Unaudited) (Unaudited) US$’000 US$’000 Short term employee benefits 2,794 3,312 Post-employment benefits 5 6 Share based payment 345 2,812 Total compensation paid to key management personnel 3,144 6,130 (d) Loans to Directors Loans to Directors, disclosed pursuant to section 383(1)(d) of the Hong Kong Companies Ordinance and Part 3 of the Companies (Disclosure of Information about Benefits of Directors) Regulation, are as follows: Name At 1 January 2020 Maximum amount outstanding during the year At 31 December 2020 (audited) and 1 January 2021 Maximum amount outstanding during the period At 30 June 2021 (unaudited) US$’000 US$’000 US$’000 US$’000 US$’000 Mr Stuart Gibson – 4,600 4,600 4,600 4,600 Mr Charles Alexander Portes – 4,600 4,600 4,600 4,600 Loans granted to directors bear interest at 4.5% (31 December 2020: 5.5%) per annum, and are unsecured and repayable in year 2022. Loans to Directors and the related interest receivables were included in prepayments, other receivables and other assets as of 30 June 2021.