Company registration number 14956821 (England and Wales)
CIM LEEDS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CIM LEEDS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C N Saverino
Mr O P Cummings
(Appointed 16 September 2024)
Company number
14956821
Registered office
72 Welbeck Street
London
United Kingdom
W1G 0AY
Auditor
Ernst & Young LLP
Liberation House
Castle Street
St Helier
Jersey
JE1 1EY
Bankers
Barclays Bank PLC
1 Churchill Place
London
E14 5HP
Solicitors
Herbert Smith Freehills LLP
Exchange House
Primrose Street
London
EC2A 2EG
CIM LEEDS HOLDINGS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
CIM LEEDS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The Directors present their annual report and audited financial statements for CIM Leeds Holdings Limited (the "Company") for the year ended 31 December 2024.

 

In preparing this report, the Company has taken advantage of the exemption provided by section 414B of the Companies Act 2006 in not preparing a Strategic Report under the small company exemption.

Principal activities

The principal activity of the Company is the development and operation of purpose-built student accommodation in Leeds.

Results and dividends

The results for the year are set out on page 7. The Company made a profit before taxation of £9,312,616 (2023: £1,205,896 loss) of which £9,350,315 (2023: £1,162,376 loss) arose from a fair value gain on the revaluation of investment property under development.

No ordinary dividends were paid. The Directors do not recommend payment of a final dividend.

 

Business performance

The Company has made significant progress in the development of the purpose-built student housing investment asset in Leeds. The project remains on track for completion by August 2026.

 

The project is fully funded through a combination of equity combined with third party debt.

Directors

The Directors who held office during the year and up to the date of approval of the financial statements were as follows:

Mr R M Pilkington
(Resigned 27 March 2024)
Mr C N Saverino
Mr D S Harris
(Appointed 27 March 2024 and resigned 17 September 2024)
Mr O P Cummings
(Appointed 16 September 2024)
Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of its Directors during the year. These provisions remain in force at the reporting date.

Charitable donations

During the year the Company made no charitable donations.

Future developments

The Directors are confident the Company will achieve stable revenue once the accommodation achieves practical completion. Focus is now on completing the development by August 2026.

CIM LEEDS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Going concern

The financial statements have been prepared on a going concern basis, which assumes the Company will be able to meet its liabilities as and when they fall due for the period to 30 June 2026. As at 31 December 2024, the Company has net current liabilities of £3,347,267 (2023: £2,720,898 net current assets) and net assets of £24,204,925 (2023: £10,234,911).

 

To conclude on the ability of the Company to continue as a going concern the Directors have prepared a robust forecast of the anticipated operational outgoings of the Company from the date of approval of the financial statements through to 30 June 2026 (the 'going concern period') which considers severe but plausible downside risks. In preparing the cash flow forecast for the Company over the going concern period, the Directors have considered all known operational expenses and capital commitments. The Company has financing facilities which with associated commitments from Cl Student Strat 1 LP provides the Company with sufficient callable commitments to meet the financial obligations of the Company through the going concern period. As there is no formal commitment to the Company in terms of equity, a letter of support has been received from CIM Zenith UK Holdings II Limited which in turn has received a letter of support from CIM Zenith Master Holdings Limited and which in turn is supported by Cl Student Strat 1 LP. The Directors believe that the letters of support provided to the Company are sufficient to cover all working capital requirements including in the event of severe but plausible circumstances. The letters of support are not a guarantee or formal financial commitment however the Directors believe that the risks that the shareholders will not provide support is remote. The Directors therefore consider it appropriate to prepare the Company's accounts on a going concern basis for the going concern review period to 30 June 2026.

Auditor

Ernst & Young LLP were re-appointed as auditor to the Company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who is a Director at the date of approving this report is aware, there is no relevant audit information of which the Company’s auditor is unaware. Additionally, the Directors individually have taken all the necessary steps that they ought to have taken as Directors in order to make themselves aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

Subsequent events

Details of any events after the reporting date are set out in note 18.

On behalf of the board
Mr O P Cummings
Director
16 May 2025
CIM LEEDS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards including FRS 101 “Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

 

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CIM LEEDS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIM LEEDS HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of CIM Leeds Holdings Limited (the ‘Company’) for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity and the related notes 1 to 18, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 101 “Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CIM LEEDS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIM LEEDS HOLDINGS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the Directors’ responsibilities statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

 

 

CIM LEEDS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIM LEEDS HOLDINGS LIMITED (CONTINUED)
- 6 -

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Company’s member, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s member those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s member, for our audit work, for this report, or for the opinions we have formed.

Christopher James Matthews, FCA (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
Jersey, Channel Islands
16 May 2025
CIM LEEDS HOLDINGS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Year
Period
ended
23 June 2023 to
31 December
31 December
2024
2023
Notes
£
£
Administrative expenses
(69,565)
(43,520)
Fair value gain/(loss) on investment property under development
9,350,315
(1,162,376)
Operating profit/(loss)
3
9,280,750
(1,205,896)
Finance income
5
31,866
-
Profit/(loss) before taxation
9,312,616
(1,205,896)
Tax on profit/(loss)
7
(1,966,215)
-
0
Total profit/(loss) for the year/period
15
7,346,401
(1,205,896)

The income statement has been prepared on the basis that all operations are continuing operations.

 

The Company has no other comprehensive income for the current financial year other than the results above and, therefore, no statement of other comprehensive income is presented.

 

The financial statements include the notes presented in pages 10 -19.

 

CIM LEEDS HOLDINGS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Non-current assets
Investment property under development
8
59,600,000
24,800,000
Current assets
Trade and other receivables
9
12,750
3,895,901
Cash and cash equivalents
6,050
-
0
18,800
3,895,901
Current liabilities
Trade and other payables
10
3,366,067
1,175,003
Net current (liabilities)/assets
(3,347,267)
2,720,898
Total assets less current liabilities
56,252,733
27,520,898
Non-current liabilities
Borrowings
11
30,081,593
17,285,987
(30,081,593)
(17,285,987)
Provisions for liabilities
Deferred tax liabilities
12
(1,966,215)
-
0
Net assets
24,204,925
10,234,911
Equity
Called up share capital
13
9,585,215
9,585,212
Share premium account
14
8,479,205
1,855,595
Retained earnings
15
6,140,505
(1,205,896)
Total equity
24,204,925
10,234,911

These financial statements include the notes presented on pages 10 - 19.

 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 7-19 were approved by the board of directors and authorised for issue on
16 May 2025
16 May 2025
and are signed on its behalf by:
Mr O P Cummings
Director
Company registration number 14956821
CIM LEEDS HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 23 June 2023
-
-
0
-
0
-
Period ended 31 December 2023:
Loss for the period
-
-
(1,205,896)
(1,205,896)
Issue of share capital
13
9,585,212
1,855,595
-
11,440,807
Balance at 31 December 2023
9,585,212
1,855,595
(1,205,896)
10,234,911
Year ended 31 December 2024:
Profit for the year
-
-
7,346,401
7,346,401
Issue of share capital
13
3
6,623,610
-
6,623,613
Balance at 31 December 2024
9,585,215
8,479,205
6,140,505
24,204,925
These financial statements include the notes presented on pages 10 - 19.
CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Material accounting policies information
Company information

CIM Leeds Holdings Limited is a private Company limited by shares registered in England and Wales and incorporated in the United Kingdom under the Companies Act 2006. The principal activity of the Company is the development and operation of student accommodation. The immediate parent company is CIM Zenith UK Holdings II Limited, the ultimate parent undertaking is CI Student Strat 1 LP, an entity registered in Jersey.

 

The registered office of the Company was changed to 72 Welbeck Street, London, United Kingdom, W1G 0AY on 23 April 2024 (previously 116 Upper Street, London, N1 1QP). The date of incorporation was 23 June 2023.

1.1
Comparative Period

The comparatives are presented for the period 23 June 2023, being the date of incorporation, to 31 December 2023.

1.2
Accounting convention

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated.

 

Basis of accounting

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the Company. The financial statements have been prepared under the historical cost convention, with the exception of investment property under development, which is measured at fair value through profit or loss. Monetary amounts in these financial statements are rounded to the nearest £.

Summary of disclosure exemptions

The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

 

The following exemptions from the requirements of UK Adopted International Accounting Standards have been applied in the preparation of these financial statements, in accordance with FRS 101:

• IFRS 7, ‘Financial instruments: Disclosures’.

• Paragraph 38 of IAS 1, ‘Presentation of financial statements’ – comparative information requirements in respect of paragraph 79(a)(iv):

• The following paragraphs of IAS 1, ‘Presentation of financial statements’:

- 10(d) (statement of cash flows)

- 16 (statement of compliance with all IFRS)

- 38A (requirement for minimum of two primary statements, including cash flow statements)

- 38B-D (additional comparative information)

- 111 (cash flow statement information); and

- 134-136 (capital management disclosures)

• IAS 7, ‘Statement of cash flow’.

• Paragraph 17 of IAS 24, ‘Related party disclosures’ (key management compensation).

• The requirements in IAS 24, ‘Related party disclosures’, to disclose related party transactions entered into between two or more members of a group.

• Paragraphs 30 and 31 of IAS 8, ‘Accounting Policies, Changes in Accounting estimates and Errors’.

IFRS 13 'Fair Value Measurement: Disclosures'.

IAS 40, 'Investment property: comparative disclosures'.

 

Where relevant, these disclosures have been made in the financial statements of CIM Zenith UK Holdings II Limited in which the Company is consolidated, and which are publicly available and can be obtained as set out in note 16. Details of the parent entity are given in note 16 to the financial statements.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Material accounting policies information
(Continued)
- 11 -
New and amended accounting standards that have been issued but are not yet effective

At the date of authorisation of these financial statements, the Company has not applied the following new and revised IFRS Accounting Standards that have been issued but are not yet effective:

- Amendments to IAS 21 Lack of Exchangeability

- Amendments to IFRS 9 and IFRS 7 Financial Instruments

- IFRS 18 Presentation and Disclosures in Financial Statements

- IFRS 19 Subsidiaries without Public Accountability: Disclosures

 

With the exception of IFRS 18, effective 1 January 2027, the effect of which the Directors are currently assessing, it is not expected that the adoption of the standards listed above will have a material impact on the financial statements of the Company in future periods.

1.3
Going concern

The financial statements have been prepared on a going concern basis, which assumes the Company will be able to meet its liabilities as and when they fall due for the period to 30 June 2026. As at 31 December 2024, the Company has net current liabilities of £3,347,267 (2023: £2,720,898 net current assets) and net assets of £2true4,204,925 (2023: £10,234,911).

 

To conclude on the ability of the Company to continue as a going concern the Directors have prepared a robust forecast of the anticipated operational outgoings of the Company from the date of approval of the financial statements through to 30 June 2026 (the 'going concern period') which considers severe but plausible downside risks. In preparing the cash flow forecast for the Company over the going concern period, the Directors have considered all known operational expenses and capital commitments. The Company has financing facilities which with associated commitments from Cl Student Strat 1 LP provides the Company with sufficient callable commitments to meet the financial obligations of the Company through the going concern period. As there is no formal commitment to the Company in terms of equity, a letter of support has been received from CIM Zenith UK Holdings II Limited which in turn has received a letter of support from CIM Zenith Master Holdings Limited and which in turn is supported by Cl Student Strat 1 LP. The Directors believe that the letters of support provided to the Company are sufficient to cover all working capital requirements including in the event of severe but plausible circumstances. The letters of support are not a guarantee or formal financial commitment however the Directors believe that the risks that the shareholders will not provide support is remote. The Directors therefore consider it appropriate to prepare the Company's accounts on a going concern basis for the going concern review period to 30 June 2026.

1.4
Investment property under development

Investment property comprises property under development that is held, to earn rental income or for capital appreciation or both.

 

Investment property under development comprises principally student accommodation substantially for use by, or in the operations of, the Company, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation.

 

Investment property under development is measured initially at cost, including transaction costs. Transaction costs include transfer taxes and professional fees for legal services to bring the property to the condition necessary for it to be capable of operating.

 

Subsequent to initial recognition, investment property under development is stated at fair value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment property under development are included in the profit or loss in the period in which they arise.

 

1.5
Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Material accounting policies information
(Continued)
- 12 -
1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

1.7
Financial assets

Financial assets are recognised in the Company's statement of financial position when the Company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets. Subsequent measurement depends on the classification and is discussed below.

 

At initial recognition, financial assets classified as fair value through profit or loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit or loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost and fair value through other comprehensive income (FVOCI) are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.8
Financial liabilities

The Company recognises financial liabilities when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Material accounting policies information
(Continued)
- 13 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the Company’s obligations are discharged, cancelled, or they expire.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

 

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2
Critical accounting estimates and judgements

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period end that may have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year, are discussed below:

 

In the application of the Company's accounting policies that are set out in note 1, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The Directors have also made judgements about the going concern of the Company as described in note 1.3. 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 if the revision affects only that period, or in the period and future periods if the revision affects both current and future periods.

 

The following are the Company's key sources of estimation uncertainty:

Key sources of estimation uncertainty
Fair value of investment property under development

The Company's investment property held is initially measured at cost and subsequently at fair value through profit or loss at the end of the reporting period. Any unrealised gains or losses on this investment are recognised immediately in the income statement.

 

Fair value is the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm's length transaction.

 

The fair valuation of the property was carried out by an external third-party valuation expert for inclusion in the audited financial statements as part of quantifying the investment property under development held by the Company. Investment property under development is measured based on estimates except where such values cannot be reliably determined. The significant methods and assumptions used by valuers in estimating fair value of investment property under development are set out in note 8. Investment property under development is measured based on estimates prepared by independent real estate valuation experts.

3
Operating profit/(loss)
Year
Period
ended
23 June 2023 to
31 December
31 December
2024
2023
Operating profit/(loss) for the year/period is stated after charging/(crediting):
£
£
Fees in relation to auditor remuneration
47,140
30,000
Fees for taxation advisory services
1,000
6,000
4
Employees

The Company had no employees and incurred no staff costs. There were £nil Directors' emoluments in 2024 (2023: £nil).

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
5
Finance income
Year
Period
ended
23 June 2023 to
31 December
31 December
2024
2023
£
£
Interest income
Interest on bank deposits
31,866
-
0
6
Finance costs

£3,143,033 (2023: £826,751) of borrowing costs are included in the cost of qualifying assets during the year as disclosed in note 8. No charge has been expensed to the income statement.

7
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of temporary differences
1,966,215
-
0

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

Year
Period
ended
23 June 2023 to
31 December
31 December
2024
2023
£
£
Profit/(loss) before taxation
9,312,616
(1,205,896)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2023: 25.00%)
2,328,154
(301,474)
Fair value movement not recognised for tax
-
290,594
Non-deductible expenses
3,600
Chargeable gains/(losses)
(371,364)
-
Deferred tax asset not recognised
5,825
10,880
Taxation charge for the year/period
1,966,215
-

The Company has unutilised carried forward tax losses and temporary differences of £322,467 as at 31 December 2024 (2023: £870,271). No deferred tax asset has been recognised on this amount as the Company cannot be certain that there will be taxable profits arising within its residual business from which the future reversal of the deferred tax asset could be deducted.

 

In the March 2021 Budget it was announced that legislation would be introduced in the Finance Bill 2021 to increase the main rate of UK corporation tax from 19% to 25%, effective April 2023. This was substantively enacted in May 2021 therefore, any closing deferred tax balance is calculated at 25%.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
8
Investment property under development
2024
£
Fair value
At 1 January 2024
24,800,000
Addition of construction costs
21,906,477
Net gain from fair value adjustment
9,350,315
Addition of other capitalised costs
400,175
Addition of capitalised borrowing costs
3,143,033
At 31 December 2024
59,600,000

The total cost incurred on the investment property under development as at 31 December 2024, based on the historical cost basis is £51,412,061 (2023: £25,962,376).

 

The addition of other capitalised costs includes professional fees and stamp duty.

 

The illustrative calculations of a valuation considered to be compliant with the principles of RICS Valuation - Professional Standards 2022, were carried out by CBRE Limited. The valuers have prepared the calculations using the basis of fair value as at the valuation date pursuant to IFRS 13 - Fair Value Measurement. Key accounting estimates used in arriving at this fair value include weekly rental income of between £155 - £460 (2023: £195 - £340) per bedspace and a student net initial yield of 5.10% (2023: 5.10%), adjusting for purchaser's costs of 6.47% (2023: 6.60%).

9
Trade and other receivables
2024
2023
£
£
VAT recoverable
12,750
3,895,901

VAT receivable was recovered in full post year end.

10
Trade and other payables
2024
2023
£
£
Trade payables
2,706,447
410,479
Loan interest accruals
603,355
721,024
Accruals
56,265
43,500
3,366,067
1,175,003

The Loan interest accrual includes amounts accrued from 26 October to 31 December for both years in relation to the bank loans.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
11
Borrowings
Non-current
Non-current
2024
2023
Bank loans
30,745,976
18,568,548
Unamortised finance costs
(664,383)
(1,282,561)
30,081,593
17,285,987

The Company has a finance facility provided by Apollo Global Management Inc. for an initial period to 21 July 2027 with an option to extend for an additional 7 months from that date. The facility is secured against the asset under development. The finance is subject to a 62.5% loan to cost (LTC) until completion at which point it transfers to a 70% loan to value. The Company was compliant with this covenant as at the period end.

 

As at the year end, there is £603,355 (2023: £721,024) of accrued interest shown as a current liability. Interest is payable quarterly and principal repayable at the end of the term. CIM Zenith UK Holdings II Limited, the parent entity, purchased an interest rate cap for the term of the loan, to hedge the interest rate risk, capping the underlying SONIA rate at 5.75%. As at 31 December 2024 there was £41.20m undrawn on this facility.

12
Deferred taxation
Liabilities
2024
2023
£
£
Deferred tax balances
1,966,215
-
0

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

£
Liability at 23 June 2023 and 1 January 2024
-
Deferred tax movements in current year
Charge/(credit) to profit or loss
1,966,215
Liability at 31 December 2024
1,966,215
13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary share of £1 each
9,585,215
9,585,212
9,585,215
9,585,212
Issued and fully paid
Ordinary share of £1 each
9,585,215
9,585,212
9,585,215
9,585,212
CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Share capital
(Continued)
- 18 -

On 8 July 2024, the Company issued 1 Ordinary Share of £1 at a price of £1,359,913, creating share premium of £1,359,912.

 

On 26 September 2024, the Company issued 1 Ordinary Share of £1 at a price of £1,633,200, creating share premium of £1,633,199.

 

On 23 December 2024, the Company issued 1 Ordinary Share of £1 at a price of £3,630,500, creating share premium of £3,630,499.

14
Share premium account
2024
2023
£
£
At the beginning of the year
1,855,595
-
0
Issue of new shares
6,623,610
-
On conversion of inter-company loan
1,855,595
At the end of the year
8,479,205
1,855,595

During the year ended 31 December 2024, CIM Zenith UK Holdings II Limited provided the Company with funding amounts totalling £6,623,613 (2023: £11,440,807) which were unsecured, interest free and repayable on demand. During 2024 the amounts were converted to equity consisting of a total of 3 equity shares of £1 each issued at a total premium of £6,623,610 (2023: £9,585,212 equity shares of £1 each issued at a total premium of £1,855,595).

15
Retained earnings
2024
2023
£
£
At the beginning of the year/period
(1,205,896)
-
Proft/(loss) for the year/period
7,346,401
(1,205,896)
At the end of the year/period
6,140,505
(1,205,896)

The accumulated profit reserve represents cumulative profits and losses net of dividends paid and other adjustments. These are shown in the statement of changes in equity (page 9).

 

16
Controlling party

As at 31 December 2024, the only parent undertaking that consolidates the results of the Company and whose financial statements are publicly available is CIM Zenith UK Holdings II Limited, an entity incorporated in the United Kingdom.

 

CIM Zenith UK Holdings II Limited is 100% owned by CIM Zenith Master Holdings Limited, a company incorporated in Jersey. CIM Zenith Master Holdings Limited is 100% owned by CI Student Strat 1 LP. There are three limited partners of CI Student Strat 1 LP, sharing control of the Partnership and the Company and the Directors consider there to be no single ultimate controlling party of either CI Student Strat 1 LP or the Company.

17
Related party transactions

In accordance with FRS 101, the Company has taken advantage of the exemption from disclosing related party transactions with entities owned wholly by the group.

CIM LEEDS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
18
Post balance sheet events

On 28 March 2025, the Company issued 1 Ordinary Share of £1 at a price of £3,456,800 creating a share premium of £3,456,799.

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