NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 18. DISPOSAL GROUP HELD FOR SALE Disposal group held for sale is primarily related to the disposal of a portfolio of logistics and warehousing facilities in China. On 3 July 2022, certain wholly-owned subsidiaries of the Company entered into share sale and purchase agreements with effect from 30 June 2022 to dispose a portfolio of logistics and warehousing facilities in China to a new China income venture. Following completion of the transaction, the Group will continue to maintain an indirect interest in the China income venture and act as the investment manager of the China income venture and asset manager of its property assets and earn management fees for such services. Details of assets and liabilities classified as held for sale as at 30 June 2022 are as follows: As at 30 June 2022 US$’000 Assets Investment properties 726,716 Deferred tax assets 4,950 Cash and bank balances 43,132 Other assets 134,328 Assets of a disposal group classified as held for sale 909,126 Liabilities Bank and other borrowings (281,931) Deferred tax liabilities (67,612) Other liabilities (268,946) Liabilities directly associated with assets classified as held for sale (618,489) Net assets directly associated with the disposal group 290,637 As at 30 June 2022, the bank and other borrowings of US$281,931,000 bears floating interest rate from 3.07% to 6.18% per annum with maturity from 2023 to 2033. The investment property with a fair value of US$589,423,000 was pledged to secure bank and other borrowings. The fair value of the investment properties under the disposal group held for sale as at 30 June 2022 was measured based on the agreed transaction price (Level 2). Lease receivables under non-cancellable operating leases generated from completed investment properties under the disposal group held for sale are as follows: As at 30 June 2022 (Unaudited) US$’000 Within one year 38,604 After one year but within two years 30,942 After two years but within three years 14,101 After three years but within four years 6,604 After four years but within five years 1,566 91,817 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 71
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