218
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
6 ASSOCIATES AND JOINT VENTURES
Group
31/12/2015
30/6/2014
$’000
$’000
Interests in associates
530,783
–
Interests in joint ventures
1,298,386
–
Loan to an associate
74,841
–
Loans to joint ventures
71,103
–
1,975,113
–
The loans to associate and joint ventures are unsecured, interest-free and settlement of the amount was neither planned
nor likely to occur in the foreseeable future. As the amounts are, in substance, a part of the Group’s net investment in the
entities, they are stated at cost less accumulated impairment loss.
The Group’s interests in the associate included an investment in junior bonds of $49.9 million which are stapled together
with the equity investment of the associate. The junior bonds bear interest of lower of 10% per annum and excess fund
(determined based on the profits for the period before interest on junior bonds).
Associates
The Group has 3 associates that are material and a number of associates that are individually immaterial to the Group. The
material associates own and develop commercial, retail, hospitality and residential related real estate assets which are
aligned to the Group’s principal activities. All are equity accounted. The following are material associates:
Ownership
interest
Country of
held by
Principal activities incorporation the Group
%
Nation Mind Development Limited
Investment holding and Hong Kong
30.0
and its subsidiaries
(a) ^
(“Nation Mind”)
property development
Perennial Tongzhou Holdings Pte. Ltd.
Investment holding and
Singapore
46.6
and its subsidiaries
(b)
(“Perennial Tongzhou Holdings”)
property development
Perennial Shenton Investors Pte. Ltd.
Investment holding and
Singapore
31.2
and its subsidiaries
(b)
(“Perennial Shenton”)
property holding
(a)
Audited by other auditor
(b)
Audited by KPMG LLP, Singapore
^
This associate is not considered significant to the Group as defined under the Singapore Exchange Limited (“SGX”) Listing Manual. For this purpose,
an associated company is considered significant as defined under SGX Listing Manual if the Group’s share of its net tangible assets represent 20% or
more of the Group’s consolidated net tangible assets, or if the Group’s share of its pre-tax profits accounts for 20% or more of the Group’s consolidated
pre-tax profits.
