NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 10. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES 30 June 2022 31 December 2021 (Unaudited) (Audited) US$’000 US$’000 Share of net assets from joint ventures 870,996 878,187 Share of net assets from associates 1,622,086 313,076 Goodwill on retaining interests in joint ventures 2 2 2,493,084 1,191,265 Shareholder loan to a joint venture 182,082 139,752 2,675,166 1,331,017 Shareholder 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 partners. Accordingly, the shareholder loan is considered as part of the Group’s investments in the joint venture. Particulars of the Group’s material joint ventures and associates 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 Milestone Partnership (“EMP”) Australia 20.00% 20.00% 20.00% Investment holding Associate Cromwell Property Group Australia 30.69% 30.69% 30.69% Property investment, funds management, property management and property development Associate Kenedix, Inc Japan 30.00% 30.00% 30.00% Fund management Associate The joint ventures and associates are accounted for using equity method. Unanimous agreements from all joint venture parties are required for investments in joint ventures. Investments in joint ventures and associates with a carrying amount of US$363,497,000 (31 December 2021: nil) were pledged to secure bank and other borrowings granted to the Group (note 15). E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 61
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