NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
105
ANNUAL REPORT 2015
19.
ASSOCIATES AND JOINT VENTURES (CONT’D)
19.1 ASSOCIATES (CONT’D)
(a)
Details of associates are included in note 46.
(b)
During the financial year, the Group subscribed to 30.6million of new shares (“Rights Shares”) in ARA Asset Management
Limited (“ARA”) at an issue price of S$1 each. The Group’s 20.1% holding in ARA remains unchanged after subscription
of the Rights Shares. The shares in ARA, excluding the Rights Shares, are mortgaged to secure bank facilities (note 32).
(c)
During the financial year, the Group acquired a 47.5% stake in the Greater Tokyo Office Fund (Jersey) L.P. and 40%
stake in ARA Harmony Fund III, L.P. at an aggregate cost of $84.4 million.
(d)
This relates to the Group’s shareholder loan to Far East Hospitality Holdings Pte. Ltd. (“FEHH”), a 30/70 joint venture
with Far East Orchard Limited. The shareholder loans to FEHH are unsecured and non-interest bearing.
(e)
Impairment assessment
In 2014, a reversal of impairment of $410,000 was recognised in profit or loss of the Group. The recoverable amount
was based on fair value less costs to sell.
(f)
Movements in the allowance accounts:
Group
2015
2014
$’000
$’000
At 1 January
(4,983)
(5,393)
Reversal of impairment for the year (note 9)
–
410
At 31 December
(4,983)
(4,983)
(g)
Aggregate information about the Group’s associates that are not individually material are as follows:
Group
2015
2014
$’000
$’000
Profit after tax
704
788
