Annual Report - Campus Living Villages

1 0 8 Campus Living Villages Annual Report 09/10
Campus Living Overseas Trust
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2010
CLOT
Introduction
The directors of Campus Living Funds Management Limited
(“CLFM”) as the Responsible Entity (“RE”) of the Campus
Living Overseas Trust (“CLOT”) present their report on the
consolidated entity consisting of CLOT and its subsidiaries for
the year ended 30 June 2010.
Fund structure and formation
The Campus Living Villages Fund (“the Fund”) is a stapled
arrangement of four trusts and their subsidiaries
(“consolidated entity”), and was established on 9 January
2007. The four trusts are Campus Living Land Trust (USA)
(“CLLT (USA)”) which is the parent entity, Campus Living
Finance Trust (“CLFT”), Campus Living Australia Trust (“CLAT”)
and Campus Living Overseas Trust (“CLOT”). The units of the
four trusts forming the Fund can only be purchased or sold in
its current stapled arrangement.
Directors
The following persons are the directors of CLFM and were in
office during the whole of the financial year and up to the date
of this report except where otherwise noted:
Professor John Niland AC
Professor Steve Burdon
Walter Carpenter
Gayle Tollifson (appointed 16 April 2010)
Nicholas James
Principal activities
The principal business activities of CLOT are to provide
accommodation to students through owned and managed
facilities and project management and development of new
facilities, some of which will be owned by CLOT and its
subsidiaries. These businesses are located in United States
of America (“US”), New Zealand (“NZ”) and the United
Kingdom (“UK”).
Distributions
CLOT did not declare a distribution during the year.
Review of operations
The refurbishment of the Salford Village was completed in
time for the start of semester in September 2009. Occupancy
at Canterbury remained a challenge for management. The US
business decided to rationalise contracts under management
to focus on owned properties and profitable external
management contracts.
Payment of borrowings
CLOT has borrowings with CLFT of $26.6m and is repayable on
demand. CLOT will use its share of future equity calls to repay
its borrowings to CLFT.
Outlook for the following financial year
The next financial year will be a period of consolidation
and growth. The main focus will be the performance of
existing assets and that committed developments meet
projected outcomes.
Environmental regulation
The Fund undertakes the development and construction of
new student accommodation facilities in the US, Australia, NZ
and the UK and is subject to the regulations of those countries
and the respective states and counties. The Fund is subject to
and complies with the regulations and legislation that govern
development and construction of new student accommodation
facilities in these regions.
Loans to directors and executives
There are no loans to or from directors or executives during
the year, at year end or at the date of this report.
Insurance of officers
During the financial year, the RE paid a premium to insure
the directors, officers and senior management of the RE and
the Fund. The liabilities insured are legal costs that may be
incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of
entities in the consolidated entity, and any other payments
arising from liabilities incurred by the officers in connection
with such proceedings. This does not include such liabilities
that arise from conduct involving a wilful breach of duty by
the officers or the improper use by the officers of their
position or of information to gain advantage for themselves or
someone else or to cause detriment to the company. It is not
possible to apportion the premium between amounts relating
to the insurance against legal costs and those relating to
other liabilities.
Fees paid to and units held by the responsible entity and
the responsible entity’s associates
Fees paid to the RE and the RE’s associates are included
in the Related party transactions note 25 in the financial
statements. The RE and the RE’s associates hold 30,656,416
units in the Fund.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of
the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings
to which the company is a party, for the purpose of taking
responsibility on behalf of the company for all or part of those
proceedings. No proceedings have been brought or intervened
in on behalf of the company with leave of the Court under
section 237 of the Corporations Act 2001.