NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 45 ASSOCIATES AND JOINT VENTURES The following are the Group’s significant investments in associates and joint ventures: Principal activity Principal place of business/ Country of incorporation Ownership interest 2022 2021 % % Associates of the Company (1) Cityview Place Holdings Pte. Ltd. Property owner and developer Singapore 33(a) 33(a) (3) IREIT Global Real estate investment trust Singapore 20.9 20.9 (2) Suzhou Dragonrise Pan- Artificial Intelligence High-Tech Fund Venture capital investment and management People’s Republic of China 50 50 Associates of Millennium & Copthorne Hotels Limited (4) First Sponsor Group Limited Investment holding company Singapore/ Cayman Islands 35 35 (1) CDL Hospitality Trusts See note 44 footnote (c) Singapore 27 – Joint Ventures of the Company (9) 58 High Street Pty Ltd Trustee Australia 85(b) – (9) ACC Smith Street Pty Limited Trustee Australia 50 50 (1) Aster Land Development Pte Ltd Property development and investment dealing Singapore 30 30 (1) Branbury Investments Ltd Property owner Singapore 43 43 (2) CBM Qatar LLC Provision of facilities management services State of Qatar 49 49 (2) CBM Facilities & Security Management (Thailand) Co. Ltd. Provision of integrated facilities management services in Thailand Thailand 49 49 (9) CDL Metro Kenmore Pty Ltd Trustee Australia 50 50 (4) Emerging Markets Affordable Housing Fund Pte. Ltd. Investment in affordable housing projects in emerging markets Singapore 69(b) 69(b) (9) FSCT DE Property 1 Real Estate GmbH & Co. KG Property investment Germany 43 43 44 SIGNIFICANT INVESTMENTS IN SUBSIDIARIES (CONT’D) Principal activity Principal place of business/ Country of incorporation Ownership interest 2022 2021 % % Direct/Indirect Subsidiaries of Millennium & Copthorne Hotels Limited (cont’d) (2) RHM Ranch LLC Hotel owner USA 100 100 (2) RHM-88, LLC Hotel owner and operator USA 100 100 (2) Sunnyvale Partners Ltd. Hotel ownership USA 100 100 (2) Trimark Hotel Corporation Hotel owner and operator USA 100 100 (2) WHB Biltmore LLC Hotel owner and operator USA 100 100 (1) Audited by KPMG LLP Singapore (2) Audited by other member firms of KPMG International (3) Audited by Shanghai Xiao Tian Cheng Certified Public Accountant Co., Ltd (4) Audited by Shenzhen Shuibo Certified Public Accountants (Special General Partnership) (5) Audited by Shanghai Certified Public Accountants (6) Auditors are not appointed yet (7) Not subject to audit by law of country of incorporation (a) Relates to the ownership interest in the non-residential component of Sunbright Holdings Limited. Please refer to note (a) under note 45 of the financial statements. (b) Phuket Square Co., Ltd and Krungthep Rimnam Limited are considered subsidiaries of the Group as the Group is exposed to variable returns from the companies and has the ability to affect those returns through the management’s control over the relevant activities of the companies. (c) CDL Hospitality Trusts (CDLHT) is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. H-REIT has an investment strategy of investing directly or indirectly, in a diversified portfolio of income-producing real estate which is primarily used for hospitality, hospitality-related and other accommodation and/or lodging purposes, whether wholly or partially, and real-estate related assets in relation to the foregoing. HBT is a business trust which currently acts as master lessee, asset owner and hotel operator. HBT may also undertake certain hospitality, hospitalityrelated and other accommodation and/or lodging development projects, acquisition and investments which may not be suitable for H-REIT. Prior to 26 May 2022, although the Group owned less than half of the ownership interest and voting power in CDLHT, management had determined that the Group had control over CDLHT. The activities of H-REIT and HBT are managed by the Group’s subsidiaries, M&C REIT Management Limited (the “H-REIT Manager”) and M&C Business Trust Management Limited (the “HBT Trustee-Manager”), respectively. The H-REIT Manager has decision-making authority over H-REIT, subject to oversight by the trustee of H-REIT. The HBT Trustee-Manager has dual responsibility of safeguarding the interests of the HBT unitholders and decision-making authority over HBT. The Group’s overall exposure to variable returns, both from H-REIT Manager’s and HBT Trustee-Manager’s remuneration from H-REIT and HBT, respectively, together with its interest in CDLHT, was significant and any decisions made by H-REIT Manager and HBT Trustee-Manager affect the Group’s overall exposure. On 26 May 2022, the Group distributed in specie part of the CDLHT units that it held, to the Company’s ordinary shareholders (notes 36 and 40), thereby reducing its interest in CDLHT to 27% (note 45). The Group has assessed that the reduction in interest in CDLHT has resulted in the Group no longer having control of CDLHT. Accordingly, CDLHT was deconsolidated and accounted for as an associate thereafter. CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 266 267
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