Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

30 Related party transactions continued
In August 2005, the Group disposed of its 17.5% interest in Reid Street Properties to Hongkong Land Holdings
Limited, an associate of JMH, on an arm’s length basis for US$2.3 million and realized a profit of US$2.0 million.
Details of Directors’ emoluments (being the key management personnel compensation) are shown on page 75
under the heading of ‘Directors’appointment, retirement, remuneration and service contracts’.
31 Summarized balance sheet of the Company
Included below is certain summarized balance sheet information of the Company disclosed in accordance with
Bermuda Law:
2005 2004
US$m US$m
Subsidiaries at cost 298.1 291.8
Net current liabilities (0.7) (1.9)
Long-term borrowings – (75.4)
Net operating assets 297.4 214.5
Share capital (refer note 19) 49.7 43.9
Share premium (refer note 20) 174.7 104.4
Revenue reserves (refer note 22) 67.0 61.2
Other reserves (refer note 22) 6.0 5.0
Shareholders’ funds 297.4 214.5
32 Post balance sheet event
On 30th December 2005, the Group announced that it had entered into an agreement to sell its 100% leasehold
interest in The Mark, New York for a gross consideration of US$150.0 million, receivable in cash.The hotel
was originally acquired in 2000 as part of the US$142.5 million acquisition of The Rafael Group.The sale was
completed on 16th February 2006.After transaction costs and tax, the post-tax gain arising on the disposal is
estimated at US$35.0 million.
Under the Group’s accounting policies, the earnings before interest, tax and depreciation for The Mark (including
management fees) for the year ended 31st December 2005 were US$3.6 million (2004: US$2.5 million).The
Group’s interest in the leasehold property as at 31st December 2005 was classified as a non-current asset held
for sale.
The Group will continue to manage the hotel until further notice.
ANNUAL REPORT 2005 69