NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 38 RELATED PARTIES Other than as disclosed elsewhere in the financial statements, the transactions with related parties based on terms agreed between the parties are as follows: Group 2023 2022 $’000 $’000 Management services fees received and receivable from: – fellow subsidiaries 1,224 1,120 – associates 15,996 369 – joint ventures 8,506 14,518 25,726 16,007 Maintenance services fees received and receivable from: – fellow subsidiaries 404 347 – associates 226 150 – joint ventures 2,627 1,629 3,257 2,126 Rental and rental-related income received and receivable from: – a fellow subsidiary 350 346 – associates 6,543 7,493 – joint ventures 120 160 7,013 7,999 Management services fees paid and payable to: – a fellow subsidiary (33) (132) – joint ventures (18) (16) (51) (148) Rental and rental-related expenses paid and payable to: – joint ventures (1,949) (1,640) – associates (72,395) (44,003) (74,344) (45,643) Compensation paid and payable to key management personnel: – directors’ fees (1,871) (1,540) – short-term employee benefits (23,076) (22,528) – other long-term benefits (1,881) (890) (26,828) (24,958) During 2023, a key management personnel of the Group had entered into sale and purchase agreement with a subsidiary of the Group to purchase a residential property with sale value of $1,755,000. Revenue from the sale will be recognised by the Group over time based on the progress of completion of the residential project. 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (I) Acquisition of subsidiaries 2023 (a) On 9 March 2023, the Group through its indirect wholly-owned subsidiary, City Pinnacle UK Holdings Limited (formerly known as Maplegate Holdings Limited) (i) acquired 100% of the shares and voting interests in MPG St Katharine Limited, which via its direct/indirect wholly-owned subsidiaries holds the St Katharine Docks development in London, United Kingdom; and (ii) settled existing indebtedness amounts, for a total consideration of approximately $596.4 million (£372.8 million). The acquisition was accounted for as an acquisition of assets. (b) On 21 April 2023, the Group through its indirect wholly-owned subsidiary, Hoko Toowong Pty Ltd, acquired the remaining equity interests in the following entities for a total consideration of $5.7 million (AUD6.4 million), including payment for assumption of the joint venture loans: (i) 58 High Street Pty Ltd (58 High Street) – 15% equity interest comprising 15 ordinary shares; and (ii) 58 High Street Unit Trust (58 HS Trust) – equity interests comprising 15 Class A ordinary units and 45 Class B ordinary units. 58 HS Trust holds a residential property in Queensland, Australia. Following the acquisition, 58 High Street and 58 HS Trust, previously accounted for as investment in joint ventures, became wholly-owned subsidiaries of the Group. The acquisition was accounted for as an acquisition of assets. (c) On 16 May 2023, the Group through its indirect wholly-owned subsidiary, Suzhou Longcheng Development Investment Co., Ltd, acquired a 100% equity stake in Suzhou Gaoxin Properties Co., Ltd. which owns an undeveloped piece of land in Suzhou, People’s Republic of China for a consideration of $67.1 million (RMB350.0 million). The acquisition was accounted for as an acquisition of assets. (d) On 23 November 2023, the Group through its direct wholly-owned subsidiary, Grande Strategic Pte. Ltd., acquired 100% equity interest of Summervale for a consideration of $2. The acquisition was accounted for as a business combination. From the date of acquisition to 31 December 2023, Summervale contributed revenue of $Nil and profit before tax of $107,000 to the Group’s results. If acquisition had occurred on 1 January 2023, there is no significant changes to the Group’s revenue and profit before tax. The acquisition-related cost of $77,000 was included in “other operating expenses”. FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 209 208
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