Annual Report - Campus Living Villages

Campus Living Villages Annual Report 09/10 4 5
Campus Living Villages Fund
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
A$’000
32. Debt refinancing
The original Century 17 portfolio is financed by US$201m (A$236m) of borrowings from the Royal Bank of Scotland (RBS),
of which US$181m is due for repayment in April 2011 and US$20m is due in April 2014. The US$181m borrowings have been
included in current liabilities, resulting in a net current liability of $195m on the balance sheet as at 30 June 2010. The RBS
borrowings are held by a syndicate of banks of which RBS is both a participant and the Agent The Fund is in the process of
refinancing the RBS debt through a private placement of debt in the United States, which is expected to be completed before
31 December 2010. The Fund has appointed RBS as the exclusive placement agent and is in the process of having the placement
of debt rated. The Fund will also pursue alternative forms of finance such as project debt facilities if these yield a result which is
more favourable than that of the private placement market.
FUND
As noted above, although the Fund is in the process of refinancing the RBS borrowings, this process is not yet complete,
resulting in a net current liability position at 30 June 2010. The existence of a net current liability position suggests a material
uncertainty which may cast doubt on the Fund’s ability to continue as a going concern and therefore its ability to realise its
assets in the normal course of business and at the amounts disclosed in the financial statements. The financial statements have
been prepared on a going concern basis as it is the Directors’ expectation, based on the information available, that the current
borrowings will be repaid through a combination of debt refinancing, extending the existing debt facility and using a portion of
the uncalled equity of $80m.
33. Events occuring after the balance sheet date
The Fund was awarded a £40m contract to design, build, operate and finance an 852 bed ensuite student accommodation
facility at the University of Bedfordshire’s Luton campus in the UK and manage 853 study bedrooms of the University’s facility.
The Fund made an equity call during July 2010 of $28.3m to repay the EBF and cash back letters of credit and bank guarantees
effective 28 July 2010.