NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 40 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (I) Acquisition of subsidiaries 2022 (a) On 28 January 2022, the Group through its indirect wholly-owned subsidiary, City Connected Communities Pte. Ltd., acquired the remaining 70% of the equity interest in Distrii Technology Singapore Pte. Ltd. (subsequently renamed as City Nexus Pte. Ltd. (“City Nexus”)), for a consideration of $1, from an associate. Following the acquisition, City Nexus became a wholly-owned subsidiary of the Group. City Nexus was previously accounted for by the Group as an investment in associate. The acquisition provides the Group with increased exposure to the business of development of software and programming activities such as smart building and smart office applications. The acquisition was accounted for as a business combination. From the date of acquisition to 31 December 2022, City Nexus contributed revenue of $17,000 and loss before tax of $317,000 to the Group’s results. If acquisition had occurred on 1 January 2022, there is no significant changes to the Group’s revenue and profit before tax. (b) On 22 February 2022, the Group through its then indirect non wholly-owned subsidiary, CDLHT, acquired 100% of the share and voting interest in Roundapple Hotel Partners III Limited (subsequently renamed as CDL HREIT Investments (II) Property Limited) which owns Hotel Brooklyn in Manchester, United Kingdom, for a total consideration of $41.0 million (£22.4 million). The acquisition was accounted for as an acquisition of assets. (c) On 14 December 2022, the Group through its indirect wholly-owned subsidiary, Atlasgate UK Holdings Limited (Atlasgate), (i) acquired 100% of the shares and voting interests in New Bath Court Limited, HSU JV Holdco Limited, HSRE Crosslane (Coventry) Limited and HSRE Crosslane (Leeds) Limited, which via its direct/indirect wholly-owned subsidiaries hold 4 student accommodation properties in Birmingham, Canterbury, Coventry and Leeds; and (ii) settled existing indebtedness amounts of the entities acquired, for a total consideration of $294.8 million (£181.2 million). The acquisition was accounted for as an acquisition of assets. 39 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 2022 2021 $’000 $’000 Insurance premium paid and payable to an associate of the ultimate holding company (2) (100) Management services fees received and receivable from: – fellow subsidiaries 1,120 2,529 – associates 369 186 – joint ventures 14,518 6,624 16,007 9,339 Maintenance services fees received and receivable from: – fellow subsidiaries 347 355 – associates 150 214 – joint ventures 1,629 893 2,126 1,462 Rental and rental-related income received and receivable from: – a fellow subsidiary 346 342 – associates 7,493 2,758 – joint ventures 160 5,943 7,999 9,043 Management services fees paid and payable to: – a fellow subsidiary (132) (1,022) – joint ventures (16) – (148) (1,022) Rental and rental-related expenses paid and payable to: – joint ventures (1,640) (1,739) – associates (44,003) – (45,643) (1,739) Purchase of property, plant and equipment from an associate – (88) Purchase consideration for investment acquired paid and payable to a joint venture – (54,571) Compensation paid and payable to key management personnel: – short-term employee benefits 23,730 16,020 – other long-term benefits 1,228 256 24,958 16,276 CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 208 209
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