4.78 MB - Perth Airport

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 29. RELATED PARTIES (CONTINUED)
Wholly-owned Group
The wholly owned group consists of WAC and its wholly owned controlled entity, WAC Investments Pty Ltd.
The ultimate controlling entity in the group is Airstralia Development Group Pty Ltd (ADG) which controls 100% of the issued capital of WAC.
Transactions between ADG and WAC between 1 July 2004 and 30 June 2005 consisted of loans advanced by ADG. Aggregate amounts
payable to ADG by WAC at balance date were as follows:
Notes 2005 2004
$’000 $’000
Current accounts payable 13 4,551 4,126
Non- current interest bearing liability 17 192,473 198,250
197,024 202,376
Short Term Shareholder Loans
A short term subordinated loan was advanced by the shareholders to ADG on 1 July 1997. ADG advanced this amount to WAC on the same
date. These loans were repaid in full on 23 March 2004. A total of $260,749 interest was charged during the 2003/2004 financial year.
Subordinated Shareholder Loans
Purchase of the Perth Airport lease was partly funded by way of shareholder sponsored subordinated debt. Interest is payable on the debt at
the National Australia Bank’s Indicator Lending Rate (or equivalent indicative rate) for 1 year commercial bills exceeding $1,000,000 as at the
first day of the financial year plus a 4% margin. $5,000,000 of principal was repaid on 24 June 2004 with additional amounts of $12,000,000
paid on 4 April 2005 and $15,000,000 paid on 23 June 2005. At 30 June 2005, accounts payable included $4,551,241 (2004: $4,126,232)
of accrued interest on subordinated debt. A total of $20,599,276 (2004: $17,985,954) interest was charged during the year.
Where at the end of any period interest on the debt is not paid by WAC because such a payment would be in breach of the bank finance
agreement provisions then;
• interest for that period will be capitalised; and
• shall be paid in full on the repayment date of the loan.
Other Related Parties
A technical service agreement exists between WAC and Port of Portland Holdings Pty Ltd (POPH, previously known as Infratil Australia Pty Ltd
(IAPL), an entity jointly owned by the Australian Infrastructure Fund and the Utilities Trust of Australia), which engages POPH for the purpose
of providing technical advice about management, operations and maintenance of the airport. The contract was based on normal commercial
terms and conditions. A total of $1,165,167 (2004: $1,137,000) was paid to POPH during the financial year. At 30 June 2005, accounts
payable included $366,997 (2004: $366,989) of accrued technical service fees.
A consulting agreement exists between WAC and BAA International Limited (BAA), under which BAA provides advice and assistance in
connection with the planning, operation, management and development of the airport businesses carried on at Perth Airport. The contract is
based upon normal commercial terms and conditions. A total of $2,072,480 (2004: $1,928,584) was paid to BAA during the financial year.
At 30 June 2005, accounts payable included $323,467 (2004: $934,492) of accrued technical service fees.
Westscheme Pty Ltd is the fund manager of the Westscheme superannuation fund. Westscheme is the default superannuation fund for
employees of Westralia Airports Corporation.
Colonial First State Private Capital Ltd (CFI) and the Officers Superannuation Fund’s (NNL) interests in ADG are managed under an Investment
Mandate Agreement by Colonial First State Investments Limited (CFSIL). CFSIL is wholly owned by Commonwealth Bank Ltd (CBA). CBA
provides financial services and debt facilities to the consolidated entity on normal commercial terms and conditions.
In April 2005 the Perth Airport Property Trust (PAPT) was established with common shareholders to ADG. The establishment of the trust
involved the transfer of properties held by WAC to PAPT for consideration of $12,000,000 based on normal commercial terms and conditions
and included costs of sale totalling $10,947,580. WAC holds a property management agreement with PAPT, whereby WAC receives a fee paid
quarterly in arrears. The fee is calculated at 5% pa of the gross revenue from properties held by PAPT. At 30 June 2005 WAC has accrued
$18,583 in management fees and $32,539 in other recharge expenses.
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