Annual Report 2012 - Development Securities PLC

Available-for-sale financial assets comprise:
29th February
2012
£’000
Financial Statements
31st December
2010
£’000
Development participation rights 5,000 5,000
Development loans to joint operations 20,921 13,726
25,921 18,726
Development participation represents the Group’s risk capital invested alongside our partners in one of our development schemes PaddingtonCentral.
The fair value of the participation is assessed by reference to the stage of completion of the project and progress on construction and lettings.
Development loans to joint ventures include a number of working capital and project-specific loans of £11,191,000 (31st December 2010: £5,703,000)
to CTP Securities Limited. The loans attract fixed coupon rates of between 5.0 and 13.0 per cent. Included in the above amount is an interest-free loan
of £208,000.
Following the renegotiation of the Curzon Park Limited loan facility, the Group provided a £5,000,000 loan to the joint venture in order to repay a share
of its bank debt. The joint venture partner provided a similar loan.
The Group has two funding agreements totalling £4,730,000 (31st December 2010: three agreements totalling £3,023,000), in respect of projects
in partnership. The loans attract fixed coupon rates of between 3.0 and 8.5 per cent.
Loan notes with a carrying value of £89,000 (31st December 2010: £89,000) are held in Continental Estates Corporation BV, an associate. Interest
is earned at a fixed rate of 6.0 per cent. Loan notes with a carrying value of £8,425,000 were issued in November 2007 by CTP Securities Limited,
with a term of five years and a fixed coupon rate of 4.25 per cent. During the period the Group acquired a further £100,000 of CTP loan notes.
Current
29th February
2012
£’000
31st December
2010
£’000
Loans and receivables:
CTP Securities Limited 200 200
Other 1,500 267
1,700 467
The Group has provided a short-term, non-interest-bearing facility of £200,000 to CTP Securities Limited and £1,500,000 to Property Alliance Group
as a contribution to a prospective future project. This amount is repayable on demand.
b) Borrowings
Current £’000
29th February
2012
£’000 £’000
31st December
2010
£’000
Bank overdrafts 1,184 831
Current instalments due on bank loans 2,219 17
Current loans maturing 7,221 —
Unamortised transaction costs (745) (325)
8,695 (308)
9,879 523
Non-current
29th February
2012
£’000
31st December
2010
£’000
First mortgage debenture 11% due 2016 20,000 20,000
Bank loans and loan notes 176,004 157,037
Unamortised transaction costs (2,827) (2,061)
193,177 174,976
Development Securities PLC / Annual Report 2012 93