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CANARY WHARF LIMITED
Registered number: 01971312
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CANARY WHARF LIMITED
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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CANARY WHARF LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors, in preparing this Strategic Report, have complied with section 414C of the Companies Act 2006.
This Strategic Report has been prepared for the company and not for the group of which it is a member and therefore focuses only on matters which are significant to the company.
The principal activity of the company continues to hold a leasehold interest in 25 Churchill Place and act as the treasurer for the Group.
As shown in the company's statement of comprehensive income, the company's loss after tax for the year was £117,372,524 (2023 - £412,731,884). Excluding exceptional profit or loss balances such as movement in provisions against intercompany debtors and movement in fair value in investment properties, the company had operating profits of £32,686,066 (2023 - £33,992,357). This is consistent with the company's operations as a property investment company.
The statement of financial position shows the company's financial position at the year end and indicates that net assets were £867,687,908 (2023 - £998,093,432). As the company acts as the treasurer of the entities under the Canary Wharf Group, the largest movements in the statement of financial position relates to the intercompany loans in which the company holds.
PRINCIPAL RISKS AND UNCERTAINTIES
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As a company engaged in property investment within Canary Wharf, we operate within a dynamic and multifaceted environment. Our business is subject to various risks and uncertainties, some of which may impact our operations, financial performance, and prospects. These risks arise from both external economic conditions and the operational nature of the business. The Company monitors these risks on a continuing basis and takes proactive steps to mitigate their potential impact.
Persistent inflation, high interest rates, and slow GDP growth continue to weigh on the UK property market. The commercial real estate sector, particularly office and retail, is undergoing structural shifts due to hybrid working trends and changes in consumer behaviour. Demand for secondary office space has declined sharply, increasing vacancy rates and downward pressure on rents. Similarly, traditional retail assets, especially those in weaker high street locations, face reduced footfall and tenant churn. The Group has a strong track record of creating value in the office market by diversifying, expanding and modernising its offerings engaging with new sectors such as healthcare and life sciences. The group has also been able to maintain a high level of footfall through increased diversification of the retail offering, including expanding into hospitality.
Construction risk remains elevated due to cost volatility, supply chain pressures, and contractor capacity constraints. In the office and retail sectors, additional complexity arises from the need to meet enhanced building regulations and ESG standards, particularly for refurbishments or fit-outs. We mitigate these risks by leveraging our in-house project management expertise, monitoring developments across the sector, identifying shifts that have potential impacts on the development and construction pipeline, and developing contingencies and resilience pathways to deliver in line with the Group’s strategy.
Financing and liquidity risk remain a key area of focus amid elevated interest rates and tighter credit conditions across the UK commercial real estate market. While the Group’s high-quality asset base and diversified income provide strong fundamentals, refinancing and funding of new developments require careful treasury management and lender engagement. This risk is considered minimal for the company as it finances its operations largely through surplus cash and intercompany financing.
Further information can be found in the Canary Wharf Group Investment Holdings plc financial statement relating to the risks and mitigation strategies.
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CANARY WHARF LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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CORPORATE & SOCIAL RESPONSIBILITY
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To deliver sustainability, the Group integrate actions and targets into every phase of project delivery and are improving the environmental performance of existing facilities through effective retrofitting and facilities management. The Group aims to design, build and manage central London’s highest quality, best value and most sustainable office, retail and residential buildings and districts. In doing this, the Group works with all its stakeholders to create and nurture vibrant, inclusive communities that meet today’s economic, environmental and social needs while anticipating those of tomorrow for the benefit of the environment, tenants, employees, the community and stakeholders.
Stakeholder engagement is essential to shaping our corporate responsibility initiatives. We actively engage with investors, clients, employees, and local communities to understand their needs and concerns. By fostering open dialogue and collaboration, we ensure that our projects align with the interests and values of our diverse stakeholders.
Transparency is key to our commitment to accountability. We transparently report on our corporate responsibility efforts and performance, providing stakeholders with insights into our environmental, social, and governance (ESG) initiatives. By tracking our progress and sharing our successes and challenges, we demonstrate our dedication to continuous improvement in corporate responsibility practices.
By integrating corporate responsibility into every aspect of our property development operations, Canary Wharf Limited strives to create value for our subsidiaries, clients, and communities while promoting sustainability and ethical practices in the real estate industry.
Further information can be found in the Canary Wharf Group Investment Holdings plc financial statements on the activities that the group participates in relating to sustainability.
KEY PERFORMANCE INDICATORS
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Dividends of £13,033,000 (2023 - £Nil) were paid during the year and up to the date of this report. At 31 December 2024 the company made a loss after tax of £117,372,524 (2023 - £412,731,884) and had net assets of £867,687,908 (2023 - £998,093,432). At 31 December 2024, the company's gross profit was £31,080,336 (2023 - £29,650,282) and a gross profit margin of 81.7% (2023 - 84.4%).
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CANARY WHARF LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
SECTION 172(1) STATEMENT COMPANIES ACT 2006
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Section 172(1) of the Companies Act 2006 requires that a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole.
Given our principal activities in property development for sale to group subsidiaries and external companies, as well as holding leasehold interests in properties generating rental income, our Section 172 statement reflects our commitment to fulfilling our duties under the Companies Act 2006 while operating in a manner consistent with our role and responsibilities within the group structure.
Our primary obligation lies with our shareholder, Stork HoldCo LP, and our actions are guided by the objective of maximising shareholder value and ensuring the long-term success of the group. We engage with Canary Wharf Group plc, an entity under common ownership, to understand their strategic objectives, priorities, and expectations, aligning our decision-making processes accordingly.
While we do not have direct employees, we recognise our responsibility to prioritise the concerns and expectations of shareholders, customers, suppliers, and the wider community and the impact on the environment in the decision-making processes. By maintaining transparent communication channels and fostering collaborative partnerships, Canary Wharf Limited aims to ensure that the needs of its stakeholders are effectively addressed and reflected in the strategic direction of the group. The Group works collaboratively with the London Boroughs of Tower Hamlets. The Group is also engaged politically and has a team responsible for the Group’s long term strategy, planning, community and sports events, links with local educational establishments and promotional arts events. The Group is an established member of the Tower Hamlets Partnership Executive Group which engages with a range of local business leaders. The Group’s People and Development Department has well established links with local schools, colleges, universities and with the local job centre.
Our governance practices prioritise transparency, accountability, and effective communication with Canary Wharf Group plc, ensuring that our activities are aligned with the group's overall mission and values. Despite our limited operational scope, we remain committed to responsible corporate citizenship and to acting in the best interests of the group as a whole.
This report was approved by the board on 27 June 2025 and signed on its behalf.
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CANARY WHARF LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The loss for the year, after taxation, amounted to £117,372,524 (2023 - £412,731,884).
Dividends of £13,033,000 were paid during the year and to the date of this report (2023 - £Nil).
The directors who served during the year and to the date of this report were:
QUALIFYING THIRD-PARTY INDEMNITY PROVISIONS
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The Company has in place a qualifying third-party indemnity provision for all directors (to the extent permitted by law) in respect of liabilities incurred as a result of their office. The Company also has in place liability insurance covering the directors and officers of the company and any associated companies. Both the indemnity and insurance were in force during the period ended 31 December 2024 and at the time of the approval of this Directors' Report. Neither the indemnity nor the insurance provide cover in the event that the director is proven to have acted dishonestly or fraudulently.
The company will continue to hold a leasehold interest in 25 Churchill Place and act as the treasurer for the Group.
For details in respect of going concern refer to Note 2.
The financial risk management objectives and policies together with the principal risks and uncertainties with regard to the use of financial instruments are contained within the Strategic Report. The company only engages in basic financial instruments.
CARBON AND ENERGY REPORTING
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The Company has taken the group and subsidiary exemption from providing carbon and energy information provided by The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
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Details on how the company has fostered relationships with suppliers, customers and others can be found within the Strategic Report on pages 1-3.
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CANARY WHARF LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
DISCLOSURE OF INFORMATION TO AUDITOR
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Deloitte LLP have indicated their willingness to continue as auditors to the company.
This report was approved by the board on 27 June 2025 and signed on its behalf.
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CANARY WHARF LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic Report, the Directors' 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
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CANARY WHARF LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
In our opinion the financial statements of Canary Wharf Limited (the ‘company’):
∙give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its loss for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
∙the statement of comprehensive income;
∙the statement of financial position;
∙the statement of changes in equity; and
∙the related notes 1 to 21.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
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 Financial Reporting Council’s (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 twelve 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.
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CANARY WHARF LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF LIMITED
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 our 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 this other information, we are required to report that fact.
We have nothing to report in this regard.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors’ responsibilities statement, 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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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CANARY WHARF LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF LIMITED
EXTENT TO WHICH 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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:
∙had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, and relevant tax legislation; and
∙do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:
Investment Property Portfolio: We have identified a fraud risk in the valuation of investment property, pinpointed specifically to the risk of management manipulation of the information provided to the valuers including lease length and rental values, which the valuers rely on during their valuation process. Our audit procedures included obtaining an understanding of the relevant controls in the investment properties' valuation and validating the tenancy data sent to the valuers for completeness and accuracy by agreeing a sample of data through to underlying lease agreements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
∙reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
∙reading minutes of meetings of those charged with governance.
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CANARY WHARF LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF LIMITED
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors’ remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
USE OF OUR REPORT
This report is made solely to the company’s members, as a body, 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 members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Georgina Robb FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
27 June 2025
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CANARY WHARF LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Movement in provision against intercompany debtors
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Movement in fair value of investment properties
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Interest receivable and similar income
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Interest payable and similar charges
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LOSS FOR THE FINANCIAL YEAR
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Other comprehensive income for the year
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TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR
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The notes on pages 14 to 30 form part of these financial statements.
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CANARY WHARF LIMITED
REGISTERED NUMBER: 01971312
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 June 2025.
The notes on pages 14 to 30 form part of these financial statements.
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CANARY WHARF LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPREHENSIVE EXPENSE FOR THE YEAR
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TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR
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CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS
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Dividends: Equity capital
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPREHENSIVE EXPENSE FOR THE YEAR
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TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR
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The notes on pages 14 to 30 form part of these financial statements.
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Page 13
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Canary Wharf Limited is a private company limited by shares incorporated in the UK under the Companies Act 2006 and registered in England and Wales at One Canada Square, Canary Wharf, London, E14 5AB.
The nature of the company's operations and its principal activities are set out in the Strategic Report.
2.ACCOUNTING POLICIES
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value and in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice, including FRS 102 “the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland”).
The Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The Company is consolidated in the financial statements of its parent, Canary Wharf Group Investment Holdings plc, which may be obtained from the Company Secretary, One Canada Square, Canary Wharf, London E14 5AB.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see Note 3).
The functional currency of the company is considered to be pounds sterling because that is the currency of the primary economic environment in which they operate.
The principal accounting policies have been applied consistently throughout the year and the preceding year and are summarised below:
In assessing the going concern basis of the company the directors have considered a period of at least 12 months from the date of approval of these financial statements.
At the year end the company was in a net asset position. Included within liabilities were intercompany creditors of £3,755,448,209, which to the extent that the company cannot pay, will not be called in for at least a period of 12 months from the signing date of the financial statements as confirmed by the ultimate controlling party, Stork Holdco LP.
Having made the requisite enquiries and assessed the resources at the disposal of the company, the directors have a reasonable expectation that the company will have adequate resources to continue its operation for the foreseeable future, being a period of a least 12 months from the date of approval of these financial statements.
Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
The company has taken the exemption from preparing the cash flow statement under Section 1.12(b) as it is a member of a group where the parent of the group prepares publicly available consolidated accounts which are intended to give a true and fair view.
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Rental income from operating leases is recognised in the Income Statement on a straight-line basis over the term of the lease. Lease incentives granted, including rent free periods, are recognised as an integral part of the net consideration for the use of the property and are therefore also recognised on the same straight line basis. Direct costs incurred in negotiating and arranging new leases are also amortised on the same straight line basis. Contingent rents, being those lease payments that are not fixed at the inception of a lease, for example turnover rents, are recorded in the periods in which they are earned.
Where revenue is obtained by the sale of assets, it is recognised when significant risks and returns have been transferred to the buyer. In the case of the sale of properties, this is on completion.
Revenue from the provision of building services is recognised on a straight-line basis over the period of construction of the associated development property.
Investment properties, including land and buildings held for development and investment properties under construction, are measured initially at cost including related transaction costs. The finance costs associated with direct expenditure on properties under construction or undergoing refurbishment are capitalised.
Where an investment property interest is acquired under a lease the associated lease liability is initially recognised at the lower of the fair value and the present value of the minimum lease payments including any initial premium. Lease payments are apportioned between the finance charge and a reduction in the outstanding obligation for future amounts payable. The total finance charge is allocated to accounting periods over the lease term so as to produce a constant periodic charge to the remaining balance of the obligation for each accounting period.
Investment properties are subsequently revalued, at each reporting date, to an amount comprising the fair value of the property interest plus the carrying value of the associated lease liability less any separately identified lease incentive assets. The gain or loss on remeasurement is recognised in the income statement.
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Finance lease agreements: lessor
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Assets leased out under finance leases are recognised as receivables at the amount equal to the present value of the minimum lease payments and any residual interest accruing to the lessor. The total finance income is allocated to accounting periods over the lease term so as to produce a constant periodic return on the remaining balance of the receivable for each accounting period.
Investments in subsidiaries and joint ventures are stated at cost less any provision for impairment.
Income from investments is recognised as the company becomes entitled to receive payment. Dividend income from investments in companies is recognised when received or irrevocably declared.
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Trade and other receivables
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Trade and other receivables are recognised initially at fair value. A provision for impairment is established where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor concerned.
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The directors have taken advantage of the exemption in paragraph 1.12c of FRS 102 allowing the company not to disclose the summary of financial instruments by the categories specified in paragraph 11.41.
Trade and other creditors are stated at cost.
Loans receivable are recognised initially at the transaction price including transaction costs. Subsequent to initial recognition, loans receivable are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the Income Statement over the period of the loan, using the effective interest method.
Where loans are subject to contractual terms and arrangements that are non-standard they are recognised initially at fair value. The fair value is assessed as the present value of most likely cash flows, subject to the limitations of the underlying terms. Any movements are recognised in the income statement.
Standard loans payable are recognised initially at transaction price including transaction costs, unless the total cost does not represent the value of a financing transaction on an arm’s length basis. In this case the present value of future payments discounted at a market rate of interest for a similar debt instrument is used in place of proceeds and the difference between the two amounts is accounted for as a capital contribution.
Subsequent to initial recognition, loans payable are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the Income Statement over the period of the loan, using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash flows (including all fees that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability.
Where loans are subject to contractual terms and arrangement that are non-standard they are carried at fair value. The fair value is assessed as the present value of most likely cash flows, subject to the limitations of the underlying terms. Any movements are recognised in the income statement.
Page 16
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing difference. Deferred tax relating to investment property is measured using the tax rates and allowances that apply to the sale of the asset.
Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expenses or income.
A provision is recognised in the Statement of Financial Position when the company has a present obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.
Page 17
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.
The preparation of financial statements also requires use of judgements, apart from those involving estimation, that management makes in the process of applying the entity’s accounting policies.
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Valuation of investment properties
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The company uses valuations performed by independent valuers as the fair value of its properties. The valuations are based upon assumptions including future rental income, anticipated void costs and the appropriate discount rate or yield. The valuers also make reference to market evidence of transaction prices for similar properties.
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Valuation of intercompany debt
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The carrying value of non-standard loans are subject to fair value adjustments in the form of loan caps to ensure the value represents the most likely contractual cash flows of the underlying instrument. Estimates and judgments are made in the calculating the quantum of the cap as the future cash flows are subject to fluctuations depending on the net assets of the company. These assessments are reviewed and amended annually.
For the year ended 31 December 2024, the financial statements of the company did not contain any significant items that required the application of judgements, apart from those involving estimation.
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An analysis of turnover by class of business is as follows:
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Development management fees
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External asset management fees
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All turnover arose within the United Kingdom.
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Page 18
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The operating loss is stated after charging:
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The operating lease rentals are in respect of the leaseback properties referred to in Note 16.
Auditor's remuneration of £21,700 (2023 - £20,100) for the audit of the company for the year has been borne by another group undertaking.
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The Company had no employees during the year (2023 - Nil). No remuneration was paid by the Company to Directors for their services to the Company and no costs were allocated or recharged to the Company (2023 - £Nil).
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INTEREST RECEIVABLE AND SIMILAR INCOME
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Interest receivable from loans to group undertakings
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Fair value adjustment to loans to group undertakings
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Bank and other interest receivable
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Finance lease interest receivable
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INTEREST PAYABLE AND SIMILAR CHARGES
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Interest payable to group undertakings
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Unwind of discount on provisions
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Page 19
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax on loss for the year
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Origination and reversal of timing differences
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TAXATION ON LOSS ON ORDINARY ACTIVITIES
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Page 20
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.TAXATION (CONTINUED)
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FACTORS AFFECTING TAX CHARGE FOR THE YEAR
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In October 2022, the government announced changes to the Corporation Tax rate from 1 April 2023, increasing the main rate of Corporation Tax to 25%.
The tax assessed for the year is different to the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Fair value movements not subject to tax
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Recognition of uncertain tax provision
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TOTAL TAX CHARGE FOR THE YEAR
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Uncertain tax provision
HMRC has an ongoing enquiry into the deductibility of interest paid by the ultimate parent undertaking Stork Holdings Limited, that generated tax deductions of £105.0m, which was subsequently utilised against the Group's tax charge sheltering £21.2m of tax in prior periods. As various members of the Group has claimed group relief in respect of this, the uncertain tax provision is being recorded in Canary Wharf Limited as it pays tax on behalf of the Group.
The directors have assessed an appropriate tax provision of £9.9m and £2.6m of associated interest, which has been recognised in 2023, using the expected value methodology under IFRIC 23. Management has reassessed the position at the year end and have concluded no amendment to the provision is required. There is a significant amount of judgement in applying probability scenarios as outlined above. The amount provided for of £13.3m compares to a potential worst case exposure at 31 December 2024 of c.£23.8m including interest versus a potential best case exposure of £Nil.
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FACTORS THAT MAY AFFECT FUTURE TAX CHARGES
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The company is a member of a REIT headed by Stork Holdings Limited. As a consequence all qualifying property rental business is exempt from corporation tax. Only income and expenses relating to non-qualifying activities will continue to be taxable.
Page 21
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Investments in subsidiary companies
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Investment in joint venture
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Page 22
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The following were subsidiary undertakings of the company:
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Canary Wharf Management Limited
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Southbank Place Management Limited
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Canary Wharf Facilities Management Limited
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The subsidiaries are registered at One Canada Square, Canary Wharf, London E14 5AB.
Dividends totalling £Nil (2023 - £Nil) were paid by the company's subsidiaries during the year ended 31 December 2024.
In accordance with Section 400 of the Companies Act 2006, financial information is only presented in these financial statements about the company as an individual undertaking and not about its group because the company and its subsidiary undertakings are included in the consolidated financial statements of a larger group (Note 21).
The directors are of the opinion that the value of the company's investments at 31 December 2024 was not less than the amount shown in the company's balance sheet.
During 2011, Canary Wharf Group plc and Qatari Diar Real Estate Investment Company concluded an agreement to redevelop the Shell Centre. The group and Qatari Diar have entered into a 50:50 joint venture and have committed to contributing £150.0m each to the joint venture to secure the 5.25 acre site on a 999 year lease. The group is acting as construction manager for the project and is also a joint development manager with Qatari Diar Real Estate Investment Company. As a part of this arrangement, the company subscribed for 1 ordinary £1 share in Braeburn Estates Development Management Limited at par, which represents 50% of its issued share capital.
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Page 23
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Freehold investment property
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Long term leasehold investment property
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During the year, the company had sold its interest in Reuters Plaza to Canary Wharf Retail 2 Limited, a fellow subsidiary undertaking for consideration of £13,033,000.
At 31 December 2024, the property was valued externally by CBRE Limited, with recent experience in office properties at Canary Wharf. The fair value was determined in accordance with the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors, using:
- Discounted cash flow based on inputs provided by the company (current rents, terms and conditions of lease agreements) and assumptions and valuation models adopted by the valuers (estimated rental values, terminal values and discount rates).
- Yield methodology based on inputs provided by the company (current rents) and assumptions and valuation models adopted by the valuers (estimated rental values and market capitalisation rates).
The resulting valuations are cross checked against the initial yields and the fair market values per square foot derived from actual market transactions. No allowance was made for any expenses of realisation nor for any taxation which might arise in the event of disposal.
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If the investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Page 24
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The fair value has been allocated to the following balance sheet items:
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The company holds leasehold interest in 25-30 Churchill Place and freehold interest in 8 Canada Square. The properties are let to several tenants with an average lease length of 14.3 (2023: 15.0) years.
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The future minimum leases receivable under these non-cancellable operating leases are as follows:
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After more than five years
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Page 25
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DUE AFTER MORE THAN ONE YEAR
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Loan to fellow subsidiary undertaking
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Finance lease receivables
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Amounts owed by group companies
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Loan to a parent undertaking
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Loan to fellow subsidiary undertakings
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Prepayments and accrued income
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Loans due within one year amounting to £3,978,927 (2023 - £Nil) are interest free and repayable on demand. The remaining loans carry interest at rates linked to SONIA or 10%, subject to certain caps, and are repayable on demand. The fellow subsidiary undertakings liabilities under these loans are capped upon maturity at the net assets of the fellow subsidiary undertakings. Consequently, at 31 December 2024, the carrying value of the loans has been reduced from the initial carrying amount by £989,678,030 (2023 - £841,570,605). During the year, loans with capital and accumulated interest totalling £212,309,238 (2023 - £2,582,460) were repaid.
The loan to a fellow subsidiary shown as due in more than one year carries interest at 10%, subject to certain caps, and is repayable by 22 April 2034. The fellow subsidiary's liability under this loan is capped upon maturity at the net assets of the fellow subsidiary undertaking. Consequently, at 31 December 2023, the carrying value of the loan has been reduced from the initial carrying amount by £612,533,761 (2023 - £492,193,740).
At 31 December 2024 the company carried provisions against amounts owed by fellow subsidiary undertakings totalling £215,940,887 (2023 - £158,630,150). These amounts relate to fellow subsidiary undertakings which were in a net liability position at the year end. The net increase in provision of £57,310,737 (2023 - £76,300,967) has been taken to the income statement.
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Page 26
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Finance lease receivables
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The amount at which finance lease debtors are stated comprises:
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Finance lease rents received
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Finance lease interest income
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Both finance leases have a fixed interest rate of 5.2% and are with a fellow subsidiary undertaking.
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The future minimum leases receivable under these non-cancellable finance leases are as follows:
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CASH AND CASH EQUIVALENTS
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Restricted cash relates to tenant deposits.
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Page 27
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Loans from parent undertakings
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Loans from fellow subsidiary undertakings
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Amounts owed to group companies
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Other taxation and social security
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The loans due to parent and fellow subsidiary undertakings are repayable either on demand or at set dates within one year and carry interest at market rates which are linked either to SONIA or to the rates payable on an issue of publicly quoted debentures by a fellow subsidiary undertaking.
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Page 28
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charged to profit or loss
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The company has recognised a provision in respect of a lease over 81 car parking spaces at 20 Canada Square at an annual rent of £202,500 until 5 January 2028.
The net rents have been discounted at 4.4% (2023 - 3.6%).
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ALLOTTED, CALLED UP AND FULLY PAID
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662,516,350 (2023 - 662,516,350) Ordinary shares of £1.00 each
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The distributable reserves of the company differ from its retained earnings as follows:
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Page 29
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CANARY WHARF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
19.OTHER FINANCIAL COMMITMENTS
As at 31 December 2024 and 31 December 2023 the company had given fixed and floating charges over substantially all its assets to secure the commitments of certain other group undertakings.
The Company has provided a letter of support to Canary Wharf B2 SPV1 Limited, confirming the intent and ability to provide financial support as needed to enable them to continue as a going concern and meets its liabilities, for a period until atleast 15 May 2026. No amounts are anticipiated to be payable.
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POST BALANCE SHEET EVENTS
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Subsequent to the year end, on 22 April 2025, the company part repaid £355m of the loan from parent undertaking.
The company's immediate parent undertaking is Canary Wharf Central Limited, a subsidiary of Canary Wharf Holdings Limited.
As at 31 December 2024, the smallest group of which the company is a member and for which group financial statements are drawn up is the consolidated financial statements of Canary Wharf Group Investment Holdings plc. Copies of the financial statements may be obtained from the Company Secretary, One Canada Square, Canary Wharf, London E14 5AB.
The largest group of which the company is a member for which group financial statements are drawn up is the consolidated financial statements of Stork HoldCo LP, an entity registered in Bermuda and the ultimate parent undertaking and controlling party. Stork HoldCo LP is registered at 73 Front Street, 5th Floor, Hamilton HM12, Bermuda.
Stork HoldCo LP is controlled as to 50% by Brookfield Property Partners LP and as to 50% by Qatar Investment Authority.
The directors have taken advantage of the exemption in paragraph 33.1A of FRS 102 allowing the company not to disclose related party transactions with respect to other wholly-owned group companies.
Page 30
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