Almacantar

 (38.30% of share capital through EXOR S.A.)

The key consolidated income statement figures of the Almacantar Group in 2015 are as follows:

Net property income has decreased by £0.5 million, or 3%, to £16.6 million compared to £17.1 million in the prior year. Commercial rental income at Centre Point has ceased following the start of refurbishment in January 2015. As Marble Arch Tower moves towards a possible future start on site, rental income for this property has reduced as commercial tenants are retained on shorter term leases at reduced rates. 

Profit attributable to owners of the parent has increased by £165.0 million to £248.1 million from £83.1 million in 2014. This is predominantly driven by investment property revaluation gains pursuant to IAS 40 of £248.6 million (£86.1 million in 2014) following the annual external valuation of the group’s portfolio.

Key consolidated statement of financial position figures of the Almacantar Group at December 31, 2015 are as follows:

The portfolio carrying value, besides the properties measured at fair value, includes the value of the residential elements of Centre Point, classified in 2015 in accordance with IFRS, as Property Inventory and valued at cost, which is representative of the market value when the reclassification was made to Property Inventory. However, based on the most recent external valuations, the estimated market value of Centre Point is £51.1 million higher than cost, so that the total of the portfolio carrying value, calculated according to EPRA (European Public Real Estate Association) amounts to £1,540 million as compared to the carrying amount of £1,488.8 million.

The increase in the carrying value of Almacantar’s property portfolio, besides the fair value changes, reflects Almacantar’s forward purchase, during July 2015, of two significant office developments at One and Two Southbank Place, from Braeburn Estates, a joint venture between Canary Wharf and Qatari Diar.  One and Two Southbank Place will provide 572,616 square feet of Grade A office space in the two buildings when completed in 2018.

Additional capital expenditure was also incurred in relation to the refurbishment of Centre Point, pre-development activities for Marble Arch Tower, and an initial feasibility study for 125 Shaftesbury Avenue.

Shareholders’ equity has increased in July following the issue of additional shares at a nominal amount of £151.8 million plus premium of £7.8 million. The amount of share capital not yet called for payment is £75.9 million.

Net debt at December 31, 2015 has increased by £193.8 million to £340.3 million compared to December 31, 2014, which mainly reflects new borrowings of £144.5 million used to finance the acquisition of One and Two Southbank Place, as well as £41.3 million drawn from the construction facility used to finance the refurbishment of Centre Point.