Annual Report - Campus Living Villages

Campus Living Villages Annual Report 09/10 4 1
Campus Living Villages Fund
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
A$’000
Sub-lease of university accommodation
The ground lease from certain universities is sub-leased to the related accommodation companies at a margin.
FUND
Development fees
The development companies that manage the construction of new facilities charge a development management fee to the
companies that own the new facilities. The fee is based on a percentage of construction cost. Development fees earned on
acquisition of an asset are determined on a sliding scale that is market related.
Bid costs for new sites are incurred by development companies and charged to the subsidiary that will earn
revenue from the new contract and own the new facilities.
Loans and interest
Loans are made between subsidiary companies and stapled entities to provide short term financing and better utilise group
funds. Loans are also in place between stapled entities and subsidiary companies from the formation of the stapled entity.
Interest is charged on loans between entities within the Fund at rates that approximate bank lending rates. CLFT obtained
financing from Transfield Finance Pty Limited in the current year and repaid the loan of $1.34m during the year. Interest charged
on this loan was $0.01m and was market related.
Dividends and distributions
Dividends and distributions are declared from subsidiary companies to entities within the Fund.
Fund manager fees paid to the Responsible Entity
The Fund manager fees are allocated to each trust based on the NAV of the trust. The constitutions of the individual trusts
prescribe the method of calculation of the fund manager fees, which is borne by the individual trusts. The total fees payable to
CLFM are subject to the total fund management fees in any year being capped at 1.5% of the NAV of the trust as determined
and calculated in the final NAV of the Fund. The fees above the cap will be payable in future years if the fees earned in those
years are below the cap at that date. This amount is recorded as a provision (refer note 18) and is discounted to reflect the
estimated timing and value of the future payment.
Management fees paid to the Responsible Entity (“RE”) CLFM include base fees $1,476,384 (2009: $1,408,575), and
performance fees below the cap $4,196,015 (2009: $2,996,000), and Performance fees above the cap are included in provisions
(refer note 18).
Directors’ fees paid to Responsible Entity
Directors’ fees of $303,142 (2009: $407,575) have been paid to the non-executive directors of the RE.
Support service costs
The Fund paid CLFM $27,850 (2009: $1,265,074) in equity raising costs and paid Transfield Corporate $377,689 (2009:
$1,031,725) for development projects, $939,503 for IT services and hardware and $1,264,030 (2009: $373,764) for
secondment of staff.
Sydney head office premises
The Fund leases head office premises from Transfield Corporate and paid rent of $377,098 (2009: $366,000).
Lease
Campus Living Flemington Road paid a lease payment of $3,839,216 (2009: $3,567,773) to Transfield Siruya joint venture.
28. Commitments
a) Capital commitments
Capital expenditure contracted for at reporting date but not recognised as a liability is:
Property, plant and equipment June 2010 June 2009
Payable within one year 17,521 96,927
17,521 96,927