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Registered number: 12416731
RAIF PROP CO 1 LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2024
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RAIF PROP CO 1 LIMITED
REGISTERED NUMBER: 12416731
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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Provisions for liabilities
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RAIF PROP CO 1 LIMITED
REGISTERED NUMBER: 12416731
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 11 form part of these financial statements.
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RAIF Prop Co 1 Limited is a private company limited by shares and incorporated in England and Wales. The registered office of the company is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ. The principal activity of the company during the period has been that of property investment and rental.
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 unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The company has made a loss of £862,159 (2023 - £2,425,829) during the period due to the downward valuation of the properties and provision for doubtful debts. The financial statements have been prepared on a going concern basis, which assumes that the company will continue to meet its liabilities when fall due in the normal course of business.
Directors have reviewed the company’s secure revenue stream from the portfolio of properties along with the cash flow forecast for 12 months post-year end to 31 December 2025 which indicates that the company will have sufficient funds available to meet its liabilities as they fall due and continue to operate during the period. Furthermore, the immediate parent company and ultimate parent company have agreed to provide continued financial support to the company. While this is not without challenge, and some uncertainty, the directors remain confident that the going concern basis remains appropriate for at least 12 months from the date of approval of the financial statements.
During January 2024, the General Partner of the ultimate parent entity agreed that subscriptions and redemptions be suspended with effect from 1 July 2023 and the ultimate parent entity be placed into voluntary liquidation. The voluntary liquidation is expected to take approximately 2 years and will result in the disposal of the assets in a manor to be determined in due course. It is not expected that this event will affect the trade of the company, at least during the next 12 months.
Revenue relates to rental income and ancillary income for services provided. Rental income from
investment property leased out under operating leases is recognised in the statement of
comprehensive income on a straight-line basis over the rental term of the lease. Income is deferred
when received in advance.
The rental term is the non-cancellable period of the rental agreement, together with any further term
for which the tenant has the option to continue the rental agreement, when at the inception of the
rental agreement it is reasonably certain that the tenant will exercise this option. Costs incurred in
earning the rental income are recognised as an expense in the statement of comprehensive income.
Interest income is recognised in profit or loss using the effective interest method.
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Investment property, which is property held to earn rental income and/or capital appreciation, is initially measured at cost, being the fair value of the consideration given, including expenditure that is directly attributable to the acquisition of the investment property. After initial recognition, investment property is stated at its fair value at the balance sheet date. Gains and losses arising from changes in the fair value of investment property are included in the profit and loss for the period in which they arise in the Statement of comprehensive income. These gains and losses are subsequently moved to 'other reserves' in the Statement of changes in equity.
Significant accounting judgements, estimates and assumptions made for the valuation of investment properties are discussed, where necessary, in note 2.15 and 7.
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Valuation of investments in subsidaries
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Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are charged as an expense to the profit or loss. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Key estimates and judgements
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The preparation of the financial statements in accordance with UK GAAP requires management to make estimates & judgements which affect the reported value of assets and liabilities at the balance sheet date.
There is estimation uncertainty in calculating the fair value of investment property. The company obtains a formal valuation from an external expert which is reviewed by management and adjusted in accordance with their understanding of rental yield and capital values which relate to the unique nature of the properties let and the lease structures which apply to them. Further details are given at note 2.8 and 7.
Trade debtors are recorded at their estimated recoverable amount and are reported net of bad debt provisions. A full line by line review is carried out based on subsequent receipt of debt post period end, as well as historical experience of the client. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.
The directors have also considered the position with My Space Housing Solutions Ltd, a tenant that entered into a Company Voluntary Arrangement (CVA) on 7 March 2025. Despite the appointment of an Insolvency Practitioner to assess possible creditor repayments, the outstanding balance of £2,688,871 at the year end was fully provided, as the directors consider the debt irrecoverable. The full provision has been recognised in the Statement of comprehensive income.
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The average monthly number of employees, including directors, during the year was 3 (2023 - 3).
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Investments in subsidiary companies
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Freehold investment property
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Investment property has been independently valued, on an individual property basis, at fair value by JPA Surveyors, a RICS qualified surveyor, in accordance with the RICS red book methodology. However, the valuations are the ultimate responsibility of the directors.
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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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RAIF PROP CO 1 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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Amounts owed by group undertakings
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 2-5 years
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Other loans represent external financing received by the company and certain other group companies. The loan is secured against each company's investment properties by way of a fixed and floating charge. The loan carries interest at a rate of 3.232% which is payable in quarterly instalments. Full repayment of the principal loan amount is due on 20 April 2028.
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Charged/(Credited) to profit or loss
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Unrealised surplus on revaluation of investment property
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Realised loss on disposal of investment property
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Allotted, called up and fully paid
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1 (2023 - 1) Ordinary shares share of £1.00
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Related party transactions
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Included within legal and professional expenses are director fees of £1,500 (2023: £2,830) for consultancy services provided.
The company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with entities within the group.
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Post balance sheet events
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Since the reporting date to the date of signing these financial statements, the following subsequent events have taken place:
New Pastures Housing Ltd, who the company held two leases with, went into liquidation on 7 February 2025 following this 1 property was relet on 8 February 2025 whilst the other property remains vacant.
When the covenant reporting was prepared for the external financing in January 2025 the loan to value slipped to 42.4% as various property values were amended to vacant possession value following issues with various tenants making rental payments. This resulted in an additional £398,933 being taken to cash trap. There were no issues with the debt yield covenant in January 2025. There have been no further issues with the covenants in the debt reporting in April and July 2025.
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RAIF PROP CO 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 23 September 2025 by Mario Cientanni (Senior statutory auditor) on behalf of Barnes Roffe Audit Limited.
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