Notes on The Accounts (Continued)
11. INTEREST IN JOINTLY CONTROLLED ENTITIES
Share of net tangible assets/(liabilities) other than goodwill Loans to jointly controlled entities
Details of the group's interest in the jointly controlled entities are as follows:-
The
group
2001
2000
$000's
$000's
1,459
(28,943)
1,158,098
1,240,307
1,159,557 1,211,364
Proportion of ownership interest
Form of
business
Name of joint venture
structure
Place of incorporation
Place of operation
Particulars of issued share capital
group's effective interest or held by
subsidiary company
Principal activity
Swire and Island
Incorporated
Communication
British Virgin Islands
Hong Kong
60 'A' shares of HK$10
40 'B' shares of HK$10
100%
Developments Limited
1 non-voting dividend
100%
Property development for resale and
investment
("Swire and Island")
share of HK$10
Island Land Development
Incorporated
Limited ("Island Land"]
British Virgin Islands
Hong Kong
100 shares of HK$10
50%
Property development
for investment
Hareton Limited
Incorporated
Hong Kong
Hong Kong
100 shares of HK$10
50%
Property development
("Hareton")
Uttoxeter Limited
Incorporated
Hong Kong
Hong Kong
100 shares of HK$10
20%
"Uttoxeter")
Cyber Island Limited
Incorporated
Hong Kong
Hong Kong
100 shares of HK$10
20%
for resale and
investment
Property development for resale and investment
Inactive
Pursuant to a shareholders' agreement ("the first agreement") entered into between Swire and Island and its shareholders on 6th November, 1991, Swire and Island purchased for redevelopment purposes two plots of land respectively from the company and its subsidiary, Island Communication Enterprises Limited, for a total consideration of $980 million. In accordance with the terms of the first agreement, the cost of the land together with any subsequent modification premium thereon are financed by interest free shareholders' loans in proportion to the shareholders' respective holdings of ordinary shares.
Pursuant to a shareholders' agreement ("the second agreement") entered into between Island Land and its shareholders on 20th November, 1993, Island Land purchased for redevelopment purposes a plot of land from the company for a total consideration of $360 million. In accordance with the terms of the second agreement, the cost of the land together with any subsequent modification premium thereon are financed by interest free shareholders' loan in proportion to the shareholders' respective holdings of ordinary shares. In February, 1997, Island Land paid modification premium of $430 million to The Government of the Hong Kong Special Administrative Region ("the Government").
Pursuant to a shareholders' agreement ("the third agreement") entered into between Hareton and its shareholders on 29th December, 1994, Hareton purchased for redevelopment purposes two plots of land from the company's subsidiary, Heartwell Limited, for a total consideration of $383 million. In accordance with the terms of the third agreement, the cost of land is financed by interest free shareholders' loans in proportion to the shareholders' respective holdings of ordinary shares.
Pursuant to a shareholders' agreement ("the fourth agreement") entered into between Uttoxeter and its shareholders on 6th October, 1999, Uttoxeter purchased for redevelopment purposes a plot of land from the Government. In accordance with the terms of the fourth agreement, the cost of land and development costs are financed by shareholders' loans in proportion to the shareholders' respective holdings of ordinary shares. Uttoxeter paid the total premium of $1,677 million to the Government.
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