CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 214 215 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (CONT’D) (II) Loss of control in subsidiaries (cont’d) 2020 (cont’d) Effects of disposals The cash flows and net assets of subsidiaries disposed of are provided below: Note 2020 $’000 Investment property 49,766 Assets held for sale 30,138 Cash and cash equivalents 13,792 Liabilities directly associated with the assets held for sale (7,397) Non-controlling interests 2,109 Net assets disposed of 88,408 Realisation of reserves 2,032 Gain on disposal of subsidiaries 32 32,897 Sale consideration 123,337 Cash of subsidiaries disposed (14,247) Cash inflow on disposal of subsidiaries 109,090 (III) Changes in interests in subsidiaries without loss of control There were the following changes in interests in subsidiaries without loss of control during the year: 2021 (a) In February 2021, the Group acquired an 84.6% equity interest in Shenzhen Tusincere (note (I) above). In September 2021, the Group entered into an agreement with Sincere Property Group to facilitate the transfer of 15.4% equity interest in Shenzhen Tusincere as partial repayment of a loan owing by Sincere Property Group to the Group. The 15.4% equity interest in Shenzhen Tusincere had been pledged by Sincere Property Group to the Group as a security for the loan extended by the Group (note 9(iii)). Following the transfer, Shenzhen Tusincere became a wholly-owned subsidiary of the Group. (b) A subsidiary of M&C, M&C REIT Management Limited (M&C REIT), being a REIT manager for CDLHT, received 8,142,678 units in CDLHT in lieu of management and performance fee income during the year. There was no significant change to the Group’s effective interest in CDLHT. (c) A subsidiary of M&C, M&C Business Trust Management Limited (MBTM), being a trustee manager for HBT, received 370,451 units in CDLHT in lieu of management fee income during the year. There was no significant change to the Group’s effective interest in CDLHT. (d) CDL Investments New Zealand Limited (CDLI), an indirect subsidiary of M&C, declared dividend in specie to its minority shareholders. There was no significant change to the Group’s effective interest. 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (CONT’D) (III) Changes in interests in subsidiaries without loss of control (cont’d) 2020 (a) M&C REIT received 8,464,229 units in CDLHT in lieu of management and performance fee income during the year. There was no significant change to the Group’s effective interest in CDLHT. (b) MBTM received 450,802 units in CDLHT in lieu of management fee income during the year. There was no significant change to the Group’s effective interest in CDLHT. (c) CDL Investments New Zealand Limited (CDLI), an indirect subsidiary of M&C, declared dividend in specie to its minority shareholders. There was no significant change to the Group’s effective interest. The following summarises the effect of changes in the Group’s ownership interests in the above subsidiaries: Shenzhen Tusincere Others Total 2021 2020 $’000 $’000 $’000 $’000 Fair value of 15.4% equity interest in Shenzhen Tusincere (32,555) – (32,555) – Net decrease in equity attributable to non-controlling interests 39,081 3,650 42,731 4,031 Net increase in equity interests attributable to owners of the Company 6,526 3,650 10,176 4,031 2021 2020 $’000 $’000 Represented by: Increase in capital reserve 10,176 4,031
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