AIREF Piccadilly Propco Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Red Place, Mayfair, London, W1K 6PL.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The fair value is determined by the directors with the benefit of professional external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any differences in the nature or location of the specified asset.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group , are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The cost of investment property requires management judgement to capture identifiable costs that are directly attributable to the purchase of the property which should be added to the cost of the property and to identify costs that should be charged to the Statement of Comprehensive Income.
The fair value of investment property requires management to estimate the price at which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction. The estimated selling price is reviewed by management with reference to independent external valuation where appropriate.
The average monthly number of persons (including directors) employed by the company during the year was:
The fair value of investment properties at the reporting date was based on a valuation carried out in March 2024 by an external independent valuer selected by the directors based upon their knowledge and independence. The valuation was arrived at by reference to market evidence of transaction prices for similar properties in its location, together with a review of property rental yields. No depreciation is provided in respect of these properties.
Trade debtors are stated after provisions for impairment of £14,859 (2022: £nil).
Included within amounts owed by group undertakings are loan balances that are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Included within amounts owed to group undertakings are loan balances that are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Bank loans consist of a principal £26,500,000 (2022: £26,500,000) facility in place, which is repayable on 26 March 2025. On 23 March 2021, AIREF Piccadilly Propco Limited entered into a loan agreement with Bayerische Landesbank in order to facilitate the purchase of Sackville House, 39-40 Piccadilly, London, W1J 0DR. The loan is secured against the assets of the fund. The full amount was drawn down on 26 March 2021 and incurs interest at 2.753%per annum on the drawn-down amount. No capital repayments are to be made until the final repayment date.
The bank loan is accounted for at amortised cost and the outstanding amount is £26,475,486 (2022: £26,455,539 ).
The aggregate secured liability is £26,475,403 (2022: £26,455,539).
Shareholder loans, consist of a principal sum of £9,083,741 (2022: £9,083,741) which represents the amount due to the company's shareholder Art-Invest Real Estate Funds GmbH acting for the account of the open-ended special Authorised Investment Fund AIF “AIREF HAEK-Funds". Interest is charged at 5% per annum. No amount of the loan is expected to be repaid in the 12 months following the signing date of the financial statements.
The outstanding amount payable to Art-Invest Real Estate Funds GmbH as at 31 December 2023 was £9,537,928 (2022: £9,503,443) being made up of the principal amount and interest accrued to date.
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.
On 2 February 2023, the company issued 1,116,000 Ordinary Shares of £1 each at par.
On 21 November 2023, the company issued 1,110,750 Ordinary Shares of £1 each at par.
Other reserves relate to non-distributable reserves arising from revaluation of investment property and fair value movement on listed investments less deferred tax.
Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The company has taken advantage of the exemption in FRS 102 1AC.35 that transactions entered into between members of a group do not need to be disclosed as all relevant subsidiaries are wholly owned.