Annual Report (in PDF) - Hongkong Land

34 Related party transactions
In the normal course of business, the Group has entered into a variety of transactions with the subsidiary undertakings of Jardine
Matheson Holdings Limited (“Jardine Matheson group members”). The more significant of these transactions are described
below:
Management fee
The management fee payable by the Group, under an agreement entered into in 1995, to Jardine Matheson Limited was
US$1.7 million (2006: US$1.2 million), being 0.5% per annum of the Group’s underlying profit in consideration for management
consultancy services provided by Jardine Matheson Limited, a wholly-owned subsidiary of Jardine Matheson Holdings Limited.
Property and other services
The Group rented properties to Jardine Matheson group members. Gross rents on such properties in 2007 amounted to
US$8.0 million (2006: US$5.7 million).
Jardine Matheson group members provided property maintenance and other services to the Group in 2007 in aggregate amounting
to US$14.9 million (2006: US$14.6 million).
Outstanding balances with joint ventures
Amounts of outstanding balances with joint ventures are included in debtors and creditors as appropriate (see Notes 19
and 22).
Directors’ emoluments
Details of Directors’ emoluments (being the key management personnel compensation) are shown on page 59 under the heading
of ‘Directors’ Appointments, Retirement, Remuneration and Service Contracts’.
Acquisition of a 50% interest in K.K. Halifax
In June 2007, the Group acquired a 50% interest in each of K.K. Halifax Associates, K.K. Halifax Asset Management and
K.K. Halifax Management Limited from Jardine Pacific Holdings Limited, a wholly-owned subsidiary of Jardine Matheson Holdings
Limited, for a consideration of US$22.0 million.
Acquisition of a 40% interest in Ampang Investments
In October 2007, the Group acquired a 40% interest in Ampang Investments Pte Ltd from Jardine Cycle & Carriage Limited,
a subsidiary of Jardine Strategic Holdings Limited, for a consideration of S$32.7 million (US$22.1 million).
Annual Report 2007 51