CMB_2001 — Page 30

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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