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HQCB PROPERTIES (HQ5 (2)) LIMITED
Registered number: 04525202
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HQCB PROPERTIES (HQ5 (2)) 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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HQCB PROPERTIES (HQ5 (2)) 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 company's immediate parent undertaking is CWCB Holdings Limited and its ultimate parent undertaking is Stork HoldCo LP.
The company is an investment holding company.
The company holds investments in HQCB Investments Limited, HQCB Properties (HQ1) Limited and HQCB Properties (HQ3) Limited, which are charged under the group's securitisation arrangement. Loans totalling £1,121,353,679 (2023: £1,121,353,679) pass through the company as part of this arrangement.
As shown in the company's statement of comprehensive income, the company's result after tax for the year was £Nil (2023 - £NIL).
The statement of financial position shows the company's financial position at the year end and indicates that net assets were £1 (2023 - £1).
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HQCB PROPERTIES (HQ5 (2)) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
PRINCIPAL RISKS AND UNCERTAINTIES
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The company faces several principal risks and uncertainties that could significantly impact its business model and financial performance, primarily centred around its investments in various group entities, where performance in group entities is driven by property investment performance. The company has various intercompany loans through the securitisation arrangement where the ability to receive and pay interest depends on the ability of group companies to attract rental income.
The Company has adopted Canary Wharf Group Investment Holdings plc ("The Group" principal risks and uncertainties monitoring and management policies. The risks and uncertainties facing the business are monitored through continuous assessment, regular formal reviews and discussion at the Group audit committee and board. The Group recognises that the effective management of risk is key to the business success. As the Group has grown and evolved in recent years, diversifying the profile of the Estate and expanding operations, its risk profile has also evolved. At the same time the Group has needed to navigate the Covid-19 pandemic, changes in how people work, as well as an increasingly challenging global economic, political, and geopolitical environment.
The Board has overall responsibility for Risk Management for the Group. In this role, it is underpinned by the Audit Committee and the Executive Risk Committee and supported throughout by the Risk Management team.
The Group’s Risk Management programme was the subject of extensive revision in 2022 and has been the focus of continued investment and development. The programme is embedded across the Group, with department heads and specialist functions acting as risk managers and risk owners.
In the current UK economic environment, risks are heightened by a combination of persistent inflation, elevated interest rates, and geopolitical uncertainties. Although UK interest rates have begun to decline in 2025 following a prolonged period of monetary tightening, financing conditions remain relatively constrained. Inflation remains above target due to sustained energy price volatility and labour market pressures, while international trade tensions, particularly with the U.S., have weakened demand for UK exports contributing to wider economic uncertainty. These macroeconomic pressures influence investor sentiment, development costs, and occupier demand across all property sectors.
To further navigate these challenges, a proactive approach is adopted to managing our property portfolio. This involves closely monitoring market trends, identifying emerging demand patterns, and adapting our properties to meet evolving tenant needs. Additionally, fostering strong tenant relationships, offering flexible leasing terms, and enhancing the amenities and services within our office buildings can help differentiate our properties in a competitive market environment. By staying agile and responsive to economic shifts, we aim to mitigate the impact of downturns and position our portfolio for long-term success and resilience.
There is growing demand for sustainable buildings that meet high environmental standards. Companies are increasingly prioritizing environmental, social, and governance (ESG) criteria in their real estate decisions, making green buildings a competitive advantage. Compliance with energy efficiency standards can require costly fit-outs and upgrades. Alongside Group companies, the Company is actively engaging with many industry groups including the UK Green Building Council (‘UKGBC’), the Better Building Partnership (‘BBP’) and Concrete Zero to ensure it remains up to date with all regulations. Operational performance of buildings is actively monitored, upgrading where possible to ensure compliance and to attract tenants.
We recognise the importance of integrating environmental, social, and governance principles into our operations to create sustainable value for all stakeholders. While our direct operational involvement may be limited, we recognise the importance of ensuring that our subsidiaries uphold responsible business practices. We actively monitor their activities to promote environmental sustainability, social well-being, and sound governance. Our oversight includes encouraging our subsidiaries to adhere to ethical standards in their financial dealings and to consider the impact of their operations on stakeholders and the broader community. Through these efforts, we aim to foster a culture of responsibility and contribute positively to the financial sector and society.
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.
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HQCB PROPERTIES (HQ5 (2)) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
KEY PERFORMANCE INDICATORS
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During the year the company’s increase in investment provisions was £23,525 (2023: £2,475).
SECTION 172(1) STATEMENT COMPANIES ACT 2006
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.
As an investment holding company with no employees, 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 environment in its decision-making processes. By maintaining transparent communication channels and fostering collaborative partnerships, we aim to ensure that the needs of its stakeholders are effectively addressed and reflected in the strategic direction of the group.
Our governance practices prioritise transparency, accountability, and effective communication with Canary Wharf Group Investment Holdings 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 5 June 2025 and signed on its behalf.
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HQCB PROPERTIES (HQ5 (2)) 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 profit for the year, after taxation, amounted to £NIL (2023 - £NIL).
No dividends have been paid or proposed for 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
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 be an investment holding company.
For details in respect of going concern refer to Note 2.
The financial risk management objectives and policies are managed at a group level and are not material to the company.
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
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This section is covered in the Strategic Report under part (c) of the Section 172 (1) statement.
ENERGY AND CARBON REPORTING
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The company makes the following disclosure requirement in relation to UK energy use and carbon emissions for periods commencing on or after 1 April 2019 for construction projects only:
The company has taken an exemption from providing carbon and energy information it has consumed less than 40,000kWh of energy in the financial year.
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HQCB PROPERTIES (HQ5 (2)) 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 5 June 2025 and signed on its behalf.
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HQCB PROPERTIES (HQ5 (2)) 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.
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HQCB PROPERTIES (HQ5 (2)) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HQCB PROPERTIES (HQ5 (2)) LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
In our opinion the financial statements of HQCB Properties (HQ5 (2)) 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 result 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 15.
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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HQCB PROPERTIES (HQ5 (2)) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HQCB PROPERTIES (HQ5 (2)) 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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HQCB PROPERTIES (HQ5 (2)) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HQCB PROPERTIES (HQ5 (2)) 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 and the directors 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.
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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HQCB PROPERTIES (HQ5 (2)) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HQCB PROPERTIES (HQ5 (2)) 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
5 June 2025
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HQCB PROPERTIES (HQ5 (2)) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Movement in provision against investments
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Interest receivable and similar income
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Interest payable and similar expenses
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PROFIT FOR THE FINANCIAL YEAR
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Other comprehensive income for the year
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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The notes on pages 14 to 20 form part of these financial statements.
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HQCB PROPERTIES (HQ5 (2)) LIMITED
REGISTERED NUMBER: 04525202
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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Creditors: amounts falling due after more than one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 June 2025.
The notes on pages 14 to 20 form part of these financial statements.
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HQCB PROPERTIES (HQ5 (2)) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR
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The notes on pages 14 to 20 form part of these financial statements.
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HQCB PROPERTIES (HQ5 (2)) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HQCB Properties (HQ5 (2)) 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 FRS102 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, Stork Holdings Limited, may be obtained at 7 Esplanade, St Helier, JE1 0BD Jersey.
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 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 at least 12 months from the date of approval of these financial statements as confirmed by Stork Holdco LP.
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.
Investments in subsidiaries 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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HQCB PROPERTIES (HQ5 (2)) 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.
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.
Borrowings
Standard loans payable are recognised initially at fair value less attributable transaction costs.
Subsequent to initial recognition, loans payable are stated at amortised cost with any difference
between the amount initially recognised and the 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 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.
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.
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HQCB PROPERTIES (HQ5 (2)) 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.
Valuation of intercompany debt
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.
Impairment of investments
Investments in subsidiaries are stated at cost less any provision for impairment. In assessing provisions for impairment, the directors have valued each subsidiary at its net asset value, as adjusted for material differences between the fair value and carrying value of its assets and liabilities.
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.
Auditor's remuneration of £9,720 (2023 - £9,000) 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 costs are recharged to the Company (2023: £nil).
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INTEREST RECEIVABLE AND SIMILAR INCOME
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Interest receivable from fellow subsidiary undertaking
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Fair value adjustment to loan owed by fellow subsidiary undertaking
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HQCB PROPERTIES (HQ5 (2)) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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INTEREST PAYABLE AND SIMILAR CHARGES
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Loans from fellow subsidiary undertaking
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Fair value adjustment to loan owed to fellow subsidiary undertaking
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Current tax on profits for the year
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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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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Fair value movements not subject to tax
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Total tax charge for the year
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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 17
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HQCB PROPERTIES (HQ5 (2)) 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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The following were subsidiary undertakings of the company:
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HQCB Properties (HQ1) Limited
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HQCB Properties (HQ3) Limited
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The subsidiaries are registered at One Canada Square, Canary Wharf, London, E14 5AB.
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 15).
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 statement of financial position.
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Page 18
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HQCB PROPERTIES (HQ5 (2)) 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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Amounts owed by fellow subsidiary undertakings
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Included within debtors due after more than one year is a loan to a fellow subsidiary undertaking for £1,121,353,679 (2023: £1,121,353,679) accrues interest at 10% per annum and is repayable on 22 April 2038. The fellow subsidiary undertaking's liability under this loan is capped upon maturity at its net assets. Consequently, at 31 December 2024, this loan has been reduced from its initial carrying amount by £319,735,999 (2023: £253,714,910).
Amounts owed by fellow subsidiary undertakings are interest free and repayable on demand.
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CREDITORS: Amounts falling due within one year
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Amounts owed to fellow subsidiary undertakings
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Amounts owed to fellow subsidiary undertakings are interest free and repayable on demand.
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CREDITORS: Amounts falling due after more than one year
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Loan from fellow subsidiary undertaking
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Included within creditors due after more than one year is a loan from a fellow subsidiary undertaking for £1,121,353,677 (2023 - £1,121,353,677) accrues interest at 10% per annum and is repayable on 22 April 2038. The company's liability under this loan is capped upon maturity at the net assets of the company. Consequently, at 31 December 2024, this loan has been reduced from its initial carrying amount by £319,893,263 (2023: £253,848,603).
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Page 19
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HQCB PROPERTIES (HQ5 (2)) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid
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121,601 (2023 - 121,601) Ordinary shares of £1.00 each
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14.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's immediate parent undertaking is CWCB 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 20
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