7 ASSOCIATES AND JOINT VENTURES Group 2024 2023 $’000 $’000 Interests in associates 42,265 44,297 Interests in joint ventures 2,311,114 2,206,827 Loans to joint ventures 160,094 230,426 2,513,473 2,481,550 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) Loans of $132.7 million (2023: $103.9 million), which are unsecured, interest-free and have no fixed terms of repayment; (ii) Loan of $27.4 million (2023: $27.0 million), which is unsecured, bears interest at 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 (2023: 1) associates that are material and a number of associates that are individually immaterial to the Group. The material associates own commercial and retail related real estate asset which is 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 2024 2023 % % PRE 7 Pte. Ltd. and its subsidiaries (“PRE 7”) Investment and property holding Singapore 51.6 51.6 Changes in interest in associate 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 19). The following summarises the financial information of each of the Group’s material associate based on their respective (consolidated) financial statements prepared in accordance with SFRS(I), modified for fair value adjustments on acquisition and differences in the Group’s accounting policies. The table also analyses, in aggregate, the carrying amount and share of profit or loss and OCI of the remaining individually immaterial associates. Notes to the Financial Statements Year ended 31 December 2024 190 PERENNIAL HOLDINGS PRIVATE LIMITED
RkJQdWJsaXNoZXIy NTM2MDQ5