Abacus Property Group – Annual Financial Report 2018

ABACUS PROPERTY GROUP
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
8. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
(a) Extract from joint ventures’ profit and loss statements
Fordtrans Pty Ltd* Merivale Pty Ltd Other Joint Ventures
Total
2018 2017 2018 2017 2018 2017 2018 2017
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue 23,722 9,646 192,389 20 557,993 478,570 774,104 488,236
Expenses (10,699) (14,152) (161,082) (1,751) (482,296) (350,060) (654,077) (365,963)
Net profit / (loss) 13,023 (4,506) 31,307 (1,731) 75,697 128,510 120,027 122,273
Share of net profit / (loss) 8,659 (2,253) 15,403 (852) 49,687 57,378 73,749 54,273
* Included in the net profit of Fordtrans Pty Ltd for the year ended 30 June 2018: interest income $1.4 million (2017: $1.9 million) and
interest expense $2.9 million (2017: $2.8 million).
(b) Extract from joint ventures’ balance sheets
Fordtrans Pty Ltd* Merivale Pty Ltd Other Joint Ventures Total
2018 2017 2018 2017 2018 2017 2018 2017
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Current assets 1,073 15,436 95,677 1,085 70,800 100,316 167,550 116,837
Non-current assets 215,214 183,031 - 119,359 243,328 547,362 458,542 849,752
216,287 198,467 95,677 120,444 314,128 647,678 626,092 966,589
Current liabilities (18,128) (3,265) (1,745) (157) (156,147) (83,010) (176,020) (86,432)
Non-current liabilities (64,800) (64,800) - (59,401) (22,372) (347,411) (87,172) (471,612)
Net assets 133,359 130,402 93,932 60,886 135,609 217,257 362,900 408,545
Share of net assets 66,679 65,201 45,625 27,490 42,586 74,557 154,890 167,248
* Included in the net assets of Fordtrans Pty Ltd as at 30 June 2018: cash and cash equivalents $0.3 million (2017: $0.7 million), current
interest bearing loans and borrowings $Nil (2017: $Nil) and non-current interest bearing loans and borrowings $64.8 million (2017: $64.8
million).
There were no impairment losses or contingent liabilities relating to the investment in the joint ventures.
1. Fordtrans Pty Ltd (Virginia Park) (“VP”)
Abacus has a 50% interest in the ownership and voting rights of Fordtrans Pty Ltd. VP’s principal place of
business is in Bentleigh East, Victoria.
VP owns a sizeable Business Park providing a mixture of industrial and office buildings as well as supporting
facilities including gymnasium, swim centre, child care centre, children’s play centre and cafe. Abacus jointly
controls the venture with the other partner under the terms of Unitholders Agreement and requires unanimous
consent for all major decisions over the relevant activities.
Abacus’ share of distributions (including capital distributions) for the year ended 30 June 2018 was $7.2 million
(2017: $2.0 million).
2. Merivale Pty Ltd (Ivy & Eve)
Abacus has a 49.2% interest in the ownership and voting rights of Merivale Pty Ltd. Merivale’s principal place of
business is in South Brisbane.
Merivale Pty Ltd owns a residential development in Merivale Street, South Brisbane, Queenland. The
development consists of two 30 storey residential towers, Ivy and Eve accommodating 472 one, two and three
bedroom apartments overlooking the Brisbane River and CBD. Abacus jointly controls the venture with the other
partners under the terms of Unitholders Agreement and requires major consent for all major decisions over the
relevant activities.
Abacus did not receive any distributions during the year ended 30 June 2018 (2017: $Nil).
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