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CANARY WHARF INVESTMENTS (THREE)

Registered number: 02455786

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
CANARY WHARF INVESTMENTS (THREE)
 

CONTENTS



Page
Directors' Report
1 - 2
Directors' Responsibilities Statement
3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Statement of Financial Position
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 18


 
CANARY WHARF INVESTMENTS (THREE)
 

 
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.

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. 

PRINCIPAL ACTIVITY

The company holds leasehold interests in One Canada Square and 10 Cabot Square, Canary Wharf.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £6,496,234 (2023 - £5,077,280).

The statement of financial position shows net assets of £131,879,620 (2023 - £125,383,386).
Dividends of £Nil have been paid or propposed for the year and to the date of this report (2023 - £Nil).

GOING CONCERN

For details in respect of going concern refer to Note 2.

DIRECTORS

The directors who served during the year and up to the date of signing were:

I J Benham 
S Z Khan 
K J Kingston 
R J Worthington 

QUALIFIYING THIRD-PARTY INDEMNITY PROVISIONS

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.

DISCLOSURE OF INFORMATION TO AUDITORS

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 auditors are 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 auditors are aware of that information.

AUDITORS

On 21 November 2024, Deloitte LLP resigned as the auditors of the Company. In their resignation letter, Deloitte confirmed that there are no matters related to their resignation that should be brought to the attention of the members or creditors of the Company.
 
The auditors, Grant Thornton UK LLP, were appointed in the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

 
CANARY WHARF INVESTMENTS (THREE)
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board on 24 June 2025 and signed on its behalf.
 








I J Benham
Director

Page 2

 
CANARY WHARF INVESTMENTS (THREE)
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing 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;

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 2006They 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.

Page 3

 
CANARY WHARF INVESTMENTS (THREE)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANARY WHARF INVESTMENTS (THREE)
 

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

We have audited the financial statements of Canary Wharf Investments (Three) (the ‘company’) for the year ended 31 December 2024, which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. 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).

In our opinion:
the financial statements give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its profit for the year then ended; 
the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

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

We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as interest rates, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

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.
Page 4

 
CANARY WHARF INVESTMENTS (THREE)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANARY WHARF INVESTMENTS (THREE)
 

OTHER INFORMATION

The other information comprises the information included in the directors' report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the directors' report and financial statements. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.

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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report has been prepared in accordance with applicable legal requirements.

MATTER ON WHICH WE ARE REQUIRED TO REPORT UNDER THE COMPANIES ACT 2006
 
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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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:
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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

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.
Page 5

 
CANARY WHARF INVESTMENTS (THREE)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANARY WHARF INVESTMENTS (THREE)
 

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant were Financial Reporting Standards 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland, tax legislation and the Companies Act 2006;
We enquired of management and the board, concerning the Group and parent company’s policies and procedures relating to:
°the identification, evaluation and compliance with laws and regulations;
°the detection and response to the risks of fraud; and
°the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and regulations. 
We enquired of management and the board, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected, or alleged fraud;
We corroborated the results of our enquiries to relevant supporting documentation such as board minutes;
We communicated relevant laws and regulations and potential fraud risks to all the engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The engagement team’s assessment of the susceptibility of the entity’s financial statements to material misstatements, including how fraud may occur:
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur, by evaluating management’s incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risks of management override of controls. We determined that the principal risks were in relation to:
°journal entries with a focus on manual journals and journals indicating large of unusual transaction based on our understanding of the business.
°evaluating the design effectiveness of controls over revenue that management has in place to prevent and detect fraud.
°potential management bias in determining accounting estimates.
°transactions with related parties.
 
Our audit procedures involved:
°evaluation of the design effectiveness of controls that management has in place to prevent and detect fraud;
°identifying and testing journal entries identified as high risk;
°assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement line item.
 
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it.
Page 6

 
CANARY WHARF INVESTMENTS (THREE)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CANARY WHARF INVESTMENTS (THREE)
 

The engagement partners’ assessment of whether the engagement team collectively has the appropriate competence and capabilities has to identify or recognise non-compliance with laws and regulations:
Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
°understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.
°knowledge of the industry in which the client operates.
°understanding of the legal and regulatory requirements specific to the Company.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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 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.






Samuel Brown (Senior statutory auditor)
For and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
24 June 2025
Page 7

 
CANARY WHARF INVESTMENTS (THREE)
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
  
8,000
8,000

GROSS PROFIT
  
8,000
8,000

Administrative expenses
  
(35)
-

Movements in fair value of investment property
 9 
-
(390,000)

OPERATING PROFIT/(LOSS)
  
7,965
(382,000)

Interest receivable and similar income
 6 
6,488,286
5,459,297

Interest payable and similar expenses
 7 
(17)
(17)

PROFIT BEFORE TAX
  
6,496,234
5,077,280

Tax on profit
 8 
-
-

PROFIT FOR THE FINANCIAL YEAR
  
6,496,234
5,077,280

Other comprehensive income for the year
  
-
-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
6,496,234
5,077,280

The notes on pages 11 to 18 form part of these financial statements.

Page 8

 
CANARY WHARF INVESTMENTS (THREE)
REGISTERED NUMBER: 02455786

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

FIXED ASSETS
  

Investment property
 9 
165,218
165,218

  
165,218
165,218

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 10 
132,035,000
125,538,714

  
132,035,000
125,538,714

Creditors: amounts falling due within one year
 11 
(320,380)
(320,328)

NET CURRENT ASSETS
  
131,714,620
125,218,386

TOTAL ASSETS LESS CURRENT LIABILITIES
  
131,879,838
125,383,604

Creditors: amounts falling due after more than one year
 12 
(218)
(218)

  

NET ASSETS
  
131,879,620
125,383,386


CAPITAL AND RESERVES
  

Called up share capital 
 14 
117,660,000
117,660,000

Retained earnings
  
14,219,620
7,723,386

  
131,879,620
125,383,386


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 June 2025.







I J Benham
Director

The notes on pages 11 to 18 form part of these financial statements.

Page 9

 
CANARY WHARF INVESTMENTS (THREE)
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Retained earnings
Total equity

£
£
£

At 1 January 2024
117,660,000
7,723,386
125,383,386


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
6,496,234
6,496,234
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
6,496,234
6,496,234


AT 31 DECEMBER 2024
117,660,000
14,219,620
131,879,620



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Retained earnings
Total equity

£
£
£

At 1 January 2023
117,660,000
2,646,106
120,306,106


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
5,077,280
5,077,280
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
5,077,280
5,077,280


AT 31 DECEMBER 2023
117,660,000
7,723,386
125,383,386


The notes on pages 11 to 18 form part of these financial statements.

Page 10

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


GENERAL INFORMATION

Canary Wharf Investments (Three) is a private unlimited company 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 Director's Report. 

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of financial statements

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 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:

 
2.2

Going concern

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 current asset position. 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.

  
2.3
Cash flow statement

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.

 
2.4

Revenue

Rental income from operating leases is recognised in the Statement of Comprehensive Income 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.

  
2.5

Taxation

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. 

Page 11

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.6

Investment 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 separately identified accrued rent, amortised lease incentives and negotiation costs. The gain or loss on remeasurement is recognised in the income statement. 

 
2.7

Financial instruments


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 receivables
Debtors 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.
Loans receivable
Loans receivable are recognised initially at fair value less attributable 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.
Trade and other payables
Trade and other creditors are stated at cost.

Page 12

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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.
Valuation of investment properties
The company uses valuations performed by independent valuers as the fair value of its properties (Note 9). 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.
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.


4.


AUDITORS' REMUNERATION

Auditor's remuneration of £8,000 (2023 - £2,400) for the audit of the company for the year has been borne by another group undertaking.




5.


EMPLOYEES




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).


6.


INTEREST RECEIVABLE AND SIMILAR INCOME

2024
2023
£
£


Interest receivable from group companies
6,488,286
5,459,297

6,488,286
5,459,297


7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Operating lease finance charge
17
17

17
17
Page 13

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


TAXATION


2024
2023
£
£



Current tax on profits for the year
-
-


Total current tax
-
-

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

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:

2024
2023
£
£


Profit on ordinary activities before tax
6,496,234
5,077,280


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
1,624,059
1,193,161

Effects of:


Property rental business
(1,987)
(1,876)

Non-taxable (income)
-
91,650

Group relief
(1,622,072)
(1,282,935)

Total tax charge for the year
-
-

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%.


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

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 14

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


INVESTMENT PROPERTY


Long term leasehold investment property

£



Valuation


At 1 January 2024
165,218



At 31 December 2024
165,218

The company holds leasehold interests in One Canada Square and 10 Cabot Square, Canary Wharf.
At 31 December 2024, the property was valued externally by Savills Limited, qualified valuers 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 flows 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.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
235,000
235,000

Impairments
(70,000)
(70,000)

165,000
165,000

Page 15

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


INVESTMENT PROPERTY (CONTINUED)


The fair value has been allocated to the following balance sheet items:

2024
2023
£
£



Leasehold properties
165,218
165,218

Operating lease liabilities
(218)
(218)

165,000
165,000

The property interest in One Canada Square is let to CWCB Properties (DS7) Limited at a ground rent of a total of £6,000 per annum, in three separate leases. Two leases expire in 2994 and the third lease expires in 2086. The property interest at 10 Cabot Square is let to 10 Cabot Square I Unit Trust at a ground rent of £2,000 per annum. This lease expires in 2994.

The future minimum rents receivable under non-cancellable operating lease are as follows:

2024
2023
£
£



Within one year
8,000
8,000

In one to five years
32,000
32,000

After more than five years
5,900,268
5,908,268

5,940,268
5,948,268

10.


DEBTORS: amounts falling due within one year

2024
2023
£
£


Amounts owed by group undertakings
14,000
6,000

Loan to group undertakings
132,021,000
125,532,714

132,035,000
125,538,714


The loan to group undertakings is repayable on demand and carries interest at a rate linked to SONIA.
Amounts owed by group undertakings are interest free and are repayable on demand.


11.


CREDITORS: amounts falling due within one year

2024
2023
£
£

Amounts owed to group undertakings
320,380
320,328

320,380
320,328


Amounts owed to group undertakings are interest free and repayable on demand.

Page 16

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


CREDITORS: amounts falling due after more than one year

2024
2023
£
£

Operating lease liabilities (note 13)
218
218

218
218



13.


OPERATING LEASE LIABILITIES

The minimum lease payments under the operating lease liability were as follows:


2024
2023
£
£


Within one year
17
17

Between 1-5 years
68
68

Over 5 years
11,821
11,838

11,906
11,923


The amount at which operating lease obligations are stated comprises:

2024
2023
£
£



Opening balance
218
218

Rents paid
(17)
(17)

Finance charge
17
17

218
218

Rents of £7 and £5 per annum are payable until 2994 and 2987 respectively. An additional rent of £5 is payable until 2086. The interest rate implicit in the leases is 8.5%.
 

14.


CALLED UP SHARE CAPITAL

2024
2023
£
£
Allotted, called up and fully paid



117,660,000 (2023 - 117,660,000) Ordinary shares of £1.00 each
117,660,000
117,660,000



15.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.

Page 17

 
CANARY WHARF INVESTMENTS (THREE)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


CONTROLLING PARTY

The company's immediate parent undertaking is Canary Wharf Investments (Two) 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 18