OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 7 ASSOCIATES AND JOINT VENTURES Group 2023 2022 $’000 $’000 Interests in associates 44,297 19,414 Interests in joint ventures 2,206,827 1,923,294 Loans to joint ventures 230,426 354,916 2,481,550 2,297,624 Loans to joint ventures are classified as financial assets at amortised cost. There is no allowance for impairment losses arising from these loans as the ECL is insignificant. Loans to joint ventures consist of the followings: (i) Loan of $99.5 million (2022: $94.4 million), which is unsecured, bears interest rate of 5% per annum and has no fixed terms of repayment; (ii) Loans of $103.9 million (2022: $150.2 million), which are unsecured, interest-free and have no fixed terms of repayment; (iii) Loan of $83.6 million, which is unsecured, interest-free and repayable not later than 7 March 2027 in the previous year was converted into RPS on 20 December 2023; and (iv) Loan of $27.0 million (2022: $26.7 million), which is unsecured, bears interest rate of 1.35% per annum and repayable not later than 18 February 2031. The settlement of loans that has no fixed terms of repayment are neither planned nor likely to occur in the foreseeable future and hence the loans are classified as non-current. Associates The Group has 1 (2022: 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 associates are equity-accounted. The following are material associates: Name of associates Principal activities Country of incorporation Ownership interests held by the Group 2023 2022 % % PRE 7 Pte. Ltd. and its subsidiaries (“PRE 7”) Investment and property holding Singapore 51.6 – Changes in interest in associates On 30 June 2023, Perennial (CHIJMES) Pte. Ltd., an indirect subsidiary of the Company, disposed its equity interest in PRE 8 Pte. Ltd. to PRE 7 Pte. Ltd., an associate of the Group, for a purchase consideration of $54.8 million. Consequently, a gain on disposal of $28.5 million was recognised in other income (see note 21). Notes to the Financial Statements Year ended 31 December 2023 179 ANNUAL REPORT 2023
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