Company No: 06233884 (England and Wales)

Contents

• Company Information
• Strategic Report
• Directors' Report
• Directors' Responsibilities Statement
• Independent Auditor's Report
• Statement of Comprehensive Income
• Balance Sheet
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes to the Financial Statements

DIRECTORS	James Michael Asher
	Fabrice Grasset
	Thomas Piquemal

SECRETARY

Jean-Philippe Laval

REGISTERED OFFICE	30 North Colonnade
	Canary Wharf
	E14 5GP
	United Kingdom

COMPANY NUMBER

06233884 (England and Wales)

AUDITOR	Cooper Parry Group Limited
	Statutory Auditor
	Broadwalk House
	5th Floor, 5 Appold St
	Broadgate
	London
	EC2A 2AG

The directors present their Strategic Report for the financial year ended 31 December 2025.

REVIEW OF THE BUSINESS

North Colonnade Limited owns 30 North Colonnade in London and leases 100% of the office floors.

The building’s valuation decreased during the year from £124.0 million at 31 December 2024 to £120.0 million at 31 December 2025.

The Company’s operational and financial performance during the year has been broadly in line with forecasts and with agreements in place with its lenders.

KEY PERFORMANCE INDICATORS ('KPIS')

The directors monitor a number of key performance indicators to assess the Company’s performance. The principal indicators are:

•Investment property valuation: £120.0 million (2024: £124.0 million)
•Gain before tax and fair value movements: £0.7 million (2024: £2.1 million)

These KPIs are considered the most relevant measures of the Company’s financial and operational performance.

PRINCIPAL RISKS AND UNCERTAINTIES

Following a tenant’s break notice, three floors out of 13 became available from 1 April 2024. Around the same time, Fitch signed a new 10-year lease until 2035 over the ground to level 5 floors (129,000 sq ft), which includes a significant rent-free period. This has a short-term impact on the Company’s cash flows.

To remain competitive, the Company has invested in upgrading the building’s infrastructure, including a newly refurbished entrance hall by a renowned designer and new end-of-trip facilities.

Although the UK property market, particularly Canary Wharf, continues to face structural challenges in office occupancy, the Company benefits from two world-leading, financially strong tenants. A reputable marketing team is actively engaged in leasing the vacant floors promptly.

The leases for the two tenants extend beyond the twelve-month going concern assessment period, and accordingly, the Company’s rental income is contractually secured for that period. The temporary impact of the Fitch rent-free period is fully mitigated by committed shareholder support.

The Company’s loan facility matures on 9 July 2026. The directors have commenced discussions with the incumbent lender and potential new lenders regarding refinancing and remain confident that a suitable refinancing solution will be secured in due course.

The Company will continue to rely on financial support from its shareholders, Fimalac SE and Hearst Colonnade Investment LLC, as required.

Approved by the Board of Directors and signed on its behalf by:

Fabrice Grasset Director

15 April 2026

The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 December 2025.

REVIEW OF THE BUSINESS

The loss for the year, after taxation, amounted to £3,216,629 (2024: £28,492,799).

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

James Michael Asher
Fabrice Grasset
Thomas Piquemal

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms 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 they ought to have taken as a director in order to make himself/herself 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.


Cooper Parry Group Limited have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

Approved by the Board of Directors and signed on its behalf by:

Fabrice Grasset Director

30 North Colonnade
Canary Wharf
E14 5GP
United Kingdom

15 April 2026

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 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 financial period.

In preparing these financial statements, the directors are required to:
* Select suitable accounting policies 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; and
* 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 enable them to ensure that the financial statements comply with the Companies Act 2006. The directors 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.

Opinion

We have audited the financial statements of North Colonnade Limited for the financial year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 23, including 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 of North Colonnade Limited (the ‘Company’):
* Give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its loss for the financial 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)). Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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.

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 Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* 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;

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 Auditors' 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.

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 gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

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 Auditors' 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.

Robert Blundell, FCA (Senior Statutory Auditor)
For and on behalf of Cooper Parry Group Limited
Statutory Auditor

Broadwalk House
5th Floor, 5 Appold St
Broadgate
London
EC2A 2AG

15 April 2026

	Note	2025		2024
		£		£
Turnover	3	18,255,732		20,018,351
Administrative expenses		( 11,310,606)		( 11,909,169)
Other operating income/(loss)		119,353		( 130,647)
Fair value movements		( 4,000,000)		( 30,100,000)
Operating profit/(loss)		3,064,479		( 22,121,465)
Interest receivable and similar income	4	1,320,555		2,127,726
Interest payable and similar expenses	4	( 7,709,356)		( 8,048,834)
Loss before taxation		( 3,324,322)		( 28,042,573)
Tax on loss	7	( 257,639)		( 450,226)
Loss for the financial year		( 3,581,961)		( 28,492,799)
Other items of other comprehensive income		( 3,453,715)		( 2,001,850)
Tax relating to components of other comprehensive income		863,429		500,463
Other comprehensive loss		(2,590,286)		(1,501,387)
Total comprehensive loss		( 6,172,247)		( 29,994,186)

	Note	2025		2024
		£		£
Fixed assets
Investment property	9	120,000,000		124,000,000
		120,000,000		124,000,000
Current assets
Debtors	10	13,752,208		16,968,436
Investments	11	39,999,091		43,840,368
Cash at bank and in hand	12	2,965,474		3,567,743
		56,716,773		64,376,547
Creditors: amounts falling due within one year	13	( 139,972,966)		( 58,090,991)
Net current (liabilities)/assets		(83,256,193)		6,285,556
Total assets less current liabilities		36,743,807		130,285,556
Creditors: amounts falling due after more than one year	14	( 72,751,700)		( 158,500,000)
Provision for liabilities	15	( 3,601,829)		( 5,223,031)
Net liabilities		(39,609,722)		(33,437,475)
Capital and reserves	18
Called-up share capital		2		2
Revaluation reserve		( 153,215,777)		( 149,215,777)
Capital contribution reserve		87,000,000		87,000,000
Other reserves		1,295,825		3,886,111
Profit and loss account		25,310,228		24,892,189
Total shareholder's deficit		(39,609,722)		(33,437,475)

The financial statements of North Colonnade Limited (registered number: 06233884) were approved and authorised for issue by the Board of Directors on 15 April 2026. They were signed on its behalf by:

Fabrice Grasset Director

	Called-up share capital		Revaluation reserve		Capital contribution reserve		Other reserves		Profit and loss account		Total
	£		£		£		£		£		£
At 01 January 2024	2		( 119,115,777)		87,000,000		5,387,498		23,284,988		( 3,443,289)
Loss for the financial year	0		0		0		0		( 28,492,799)		( 28,492,799)
Tax relating to components of other comprehensive income	0		0		0		500,463		0		500,463
Transfer to investment property revaluation reserve from retained earnings	0		( 30,100,000)		0		0		30,100,000		0
Interest rate swap movement	0		0		0		( 2,001,850)		0		( 2,001,850)
Total comprehensive loss	0		( 30,100,000)		0		( 1,501,387)		1,607,201		( 29,994,186)
At 31 December 2024	2		( 149,215,777)		87,000,000		3,886,111		24,892,189		( 33,437,475)
At 01 January 2025	2		( 149,215,777)		87,000,000		3,886,111		24,892,189		( 33,437,475)
Loss for the financial year	0		0		0		0		( 3,581,961)		( 3,581,961)
Tax relating to components of other comprehensive income	0		0		0		863,429		0		863,429
Transfer to investment property revaluation reserve	0		( 4,000,000)		0		0		4,000,000		0
Interest rate swap movement	0		0		0		( 3,453,715)		0		( 3,453,715)
Total comprehensive loss	0		( 4,000,000)		0		( 2,590,286)		418,039		( 6,172,247)
At 31 December 2025	2		( 153,215,777)		87,000,000		1,295,825		25,310,228		( 39,609,722)

	2025		2024
	£		£
Net cash flows from operating activities (note 21)	3,785,132		8,983,088
Cash flows from investing activities
Interest received	1,320,555		2,127,726
Current asset investments	3,841,276		(43,840,368)
Net cash flows from investing activities	5,161,831		( 41,712,642)
Cash flows from financing activities
Repayments of borrowings	( 5,268,846)		( 5,055,176)
Repayment of other loans	0		0
Interest paid	(7,709,355)		(8,048,834)
Other new loans	3,428,968		43,980,313
Net cash flows from financing activities	( 9,549,233)		30,876,303
Net (decrease) in cash and cash equivalents	( 602,270)		( 1,853,251)
Cash and cash equivalents at beginning of year	3,567,743		5,420,994
Cash and cash equivalents at end of year	2,965,473		3,567,743
Reconciliation to cash at bank and in hand:
Cash at bank and in hand at end of year	2,965,473		3,567,743
Cash and cash equivalents at end of year	2,965,473		3,567,743

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

North Colonnade Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 30 North Colonnade, Canary Wharf, E14 5GP, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’ issued by the Financial Reporting Council, Financial Reporting Standard 102 (FRS102), and the requirements of the Companies Act 2006 .

The functional currency of North Colonnade Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

These financial statements are separate financial statements.

Going concern

The directors have undertaken a detailed review of the future prospects of the Company, including consideration of the global and UK economic environment, with particular focus on the impact of flexible working patterns on the UK commercial real estate market and the potential consequences for future cash flows.

The renewal of Fitch’s lease for a further 10-year term includes a significant rent-free period. While this secures long-term occupancy, the lease terms, combined with reduced transaction activity in Canary Wharf and increased office availability, have contributed to a reduction in the valuation of the building and a short-term adverse impact on cash flows.

The Company’s existing loan facility matures in July 2026 and will therefore require refinancing on or before that date. Discussions have commenced with the incumbent lender and with potential new lenders regarding refinancing options. Although refinancing has not yet been finalised, the directors note the quality of the underlying asset, the long-term lease profile of the tenants and the constructive engagement with lenders to date.

The shareholders have confirmed that they will provide the financial support required to offset the temporary cash flow shortfall arising from the rent-free period and, more generally, to ensure that the Company is able to meet its obligations as they fall due.

The cash flow forecasts prepared by the directors incorporate the above factors, including the impact of the rent-free period and the anticipated refinancing of the loan facility. Based on these forecasts, together with confirmed shareholder support and ongoing lender engagement, the directors have concluded that the Company will have adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements

.

While the refinancing process requires the exercise of judgement, the directors do not consider that a material uncertainty exists in relation to the Company’s ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise on monetary items.

Turnover

Residential

Revenue represents rent and service charges receivable in respect of the year ended 31 December 2025.

Rental income (excluding Value Added Tax) is included in the financial statements in accordance with applicable leases after taking rent free periods into account.

Service charges are recognised over the period to which they relate. Service charges relating to future periods are included in deferred income.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount.

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a change 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 balance sheet date in the countries where the Company operates and generates income.

Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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 income tax is
determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Office equipment

3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessor
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income as described below.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by external valuers and derived from current market rent and investment property yields for comparable real estate, adjusted if necessary, for any difference in nature, location or condition of the specific property.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Hedge accounting
The Company designates certain derivatives as hedging instruments in cash flow hedges and fair value hedges.

At the inception of the hedge relationship, the entity documents the economic relationship between the hedging instrument and the hedged item, along with its risk management objectives and clear identification of the risk in the hedged item that is being hedged by the hedging instrument. Furthermore, at the inception of the hedge the Company determines and documents causes for hedge ineffectiveness.

Note 17 sets out details of the fair values of the derivative instruments used for hedging purposes.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.

The directors do not consider that any critical judgements have been made in the application of the Company's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.


Critical judgements in applying the Company’s accounting policies

3. Turnover

The whole of the turnover is attributable to the principal activities of rental income derived from the Company's investment property and service charge derived from managing the common parts of the investment property.

Turnover is wholly attributable to the principal activity of the Company and arises solely within the United Kingdom.

4. Interest receivable and interest payable

	2025		2024
	£		£
Interest receivable and similar income	1,320,555		2,127,726
Interest payable and similar expenses	( 7,709,356)		( 8,048,834)
	(6,388,801)		(5,921,108)

5. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

	2025		2024
	£		£
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements:	37,000		33,600
	0		0
Total audit fees	37,000		33,600

6. Staff number and costs

	2025		2024
	Number		Number
The average monthly number of employees (including directors) was:
Administration	4		4

Their aggregate remuneration comprised:

	2025		2024
	£		£
Wages and salaries	311,504		254,004
Social security costs	34,641		29,856
Other retirement benefit costs	40,000		40,000
	386,145		323,860

7. Tax on loss

	2025		2024
	£		£
Current tax on loss
UK corporation tax	1,015,412		1,588,036
Total current tax	1,015,412		1,588,036
Deferred tax
Origination and reversal of timing differences	( 925,562)		( 1,137,810)
Adjustments in respect of prior periods	167,789		0
Total deferred tax	( 757,773)		( 1,137,810)
Total tax on loss	257,639		450,226

Tax reconciliation

The tax assessed for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK:

	2025		2024
	£		£
Loss before taxation	(3,324,322)		(28,042,573)
Tax on loss at standard UK corporation tax rate of 25% (2024: 25%)	( 831,081)		( 7,010,643)
Effects of:
Expenses not deductible for tax purposes	1,024,179		7,525,389
Income not taxable in determining taxable profit	( 1,000,000)		( 7,525,000)
Adjustments in respect of prior years	( 103,248)		20
Capital allowances for year in excess of depreciation	0		(64,541)
Deferred tax relating to other comprehensive income	863,429		500,463
timing differences not recognised in the computation	(863,429)		(500,462)
Remeasurement of deferred tax for chnages in tax rates	0		0
Movement in deferred tax nor recognised	1,000,000		7,525,000
Minor adjustment	0		1
Adjustments to tax charge in respect of previous periods - deferred tax	167,789		0
Total tax charge for year	257,639		450,227

8. Tangible assets

	Office equipment		Total
	£		£
Cost
At 01 January 2025	875		875
At 31 December 2025	875		875
Accumulated depreciation
At 01 January 2025	875		875
At 31 December 2025	875		875
Net book value
At 31 December 2025	0		0
At 31 December 2024	0		0

9. Investment property

	Investment property
	£
Valuation
As at 01 January 2025	124,000,000
Fair value movement	(4,000,000)
As at 31 December 2025	120,000,000

The property has been valued at open market value as at the year-end by the directors. This was based on valuation provided on 31 December 2025 by an independent external valuer, Knight Frank, on an open market value for existing use basis.

10. Debtors

	2025		2024
	£		£
Trade debtors	37,825		0
Corporation tax	36,855		0
Other debtors	3,367,927		3,129,055
Prepayments and accrued income	8,490,269		8,566,333
Derivative financial instruments	1,819,332		5,273,048
	13,752,208		16,968,436

11. Current asset investments

	2025		2024
	£		£
Unlisted investments	39,999,092		43,840,368

Current asset investments relate to invested collateral received from the shareholders to support loan covenants. These investments are split into equity investments of £33,565,146 (2024: £37,222,712) and cash under deposit of £6,433,946 (2024: £6,617,656).

12. Cash and cash equivalents

	2025		2024
	£		£
Cash at bank and in hand	2,965,474		3,567,743

13. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans	94,883,156		6,402,002
Payments received on account	795		795
Trade creditors	0		257,594
Amounts owed to Group undertakings (note 22)	40,438,376		44,011,107
Payroll taxes payable	71,628		42,166
Taxation and social security	0		592,733
VAT	57,780		53,217
Accruals and deferred income	4,521,231		5,731,377
Other creditors	0		1,000,000
	139,972,966		58,090,991

14. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Bank loans and overdrafts (secured)	0		93,750,000
Other loans	71,751,700		64,750,000
Other creditors	1,000,000		0
	72,751,700		158,500,000

The Company made capital repayments of £5,000,000 (2024: £5,000,000) to CITI Bank during the year. Included within bank loans is the balance outstanding as at 31 December 2025 of £93,750,000 (2024: £98,750,000), split between due within one year. The loan is repayable on or before 10 July 2026. The interest rate has been fixed through the use of the interest rate swap explained in note 16. The loan is secured against the Company's investment property.

Amounts owed to group undertakings include amounts owed to Fimalac SE, the ultimate parent company of North Colonnade Limited and Hearst Colonnade Investment LLC, which indirectly owns 20% of North Colonnade Limited.

The amounts owed to group including interest as at 31 December 2025 to Fimalac SE and Hearst Colonnade Investment LLC respectively are £58,709,303 (2024: £51,807,522) and £14,510,531 (2024: £12,951,880). During the year the Company repaid capital of £Nil (2024: £Nil) to Fimalac SE and £Nil (2024: £Nil) to Hearst Colonnade Investment LLC. The loans are unsecured, and interest is charged at a rate of SONIA + 0.6% per annum. The loan balances outstanding are repayable in more than one year. The Company incurred interest charges of £10,347,516 (2024: £8,725,945) on group these loans.

During the year the Company had loans of £32,400,000 (2024: £35,881,881) from Fimalac SE and £6,400,000 (2024: £6,400,000) from Hearst Colonnade Investment LLC. These loans attract interest at 4.66% and 4.56% per annum respectively. The loans, inclusive of interest are to be repaid on or around 10th July 2026. At the Balance Sheet date £33,737,177 and £6,694,397 where payable and shown in with Creditors: Amounts falling due within one year.

Bank loans
	2025		2024
	£		£
Between one and two years	0		5,000,000
Between two and five years	0		88,750,000
After five years	0		0
	0		93,750,000
On demand or within one year	94,883,156		6,402,002
	94,883,156		100,152,002

15. Provision for liabilities

	Deferred taxation		Total
	£		£
At 01 January 2025	5,223,031		5,223,031
Credited to the Profit and Loss Account	( 757,773)		( 757,773)
Credited to the Statement of Comprehensive Income	( 863,429)		( 863,429)
At 31 December 2025	3,601,829		3,601,829

Deferred tax

	2025		2024
	£		£
Accelerated capital allowances	7,599,655		7,469,726
Tax losses available	( 3,997,826)		( 2,246,695)
Provision for deferred tax	3,601,829		5,223,031

16. Deferred tax

	2025		2024
	£		£
At the beginning of financial year	( 5,223,031)		( 6,861,304)
Credited to the Profit and Loss Account	757,773		1,137,810
Credited to the Statement of Comprehensive Income	863,429		500,463
At the end of financial year	( 3,601,829)		( 5,223,031)

17. Financial instruments

The carrying values of the Company’s financial assets and liabilities are summarised by category below:

	2025		2024
	£		£
Financial assets
Measured at fair value and designated in an effective hedging relationship
Derivative financial assets	1,819,332		5,273,048

The Company has an £93.75m (2024: £98.75m) interest rate swap derivative which has been included int he financial statements at fair value. It has a start date of 12 July 2019 and a maturity date of 11 July 2026. The swap has fixed interest payments at a rate of 1.1805% for the periods to July 2026 and has floating interest SONIA based receipts. The derivate is a hedge against upwards movements in interest rates. The Company has recognised a loss of £ 3,453,715 (2024: loss of £2,001,850) in other comprehensive income as a change in fair value of the swap in the year.

18. Called-up share capital and reserves

	2025		2024
	£		£
Allotted, called-up and fully-paid
2 Ordinary shares of £ 1.00 each	2		2
Presented as follows:
Called-up share capital presented as equity	2		2

The Company's other reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, including unrealised profit on the remeasurement of investment properties, net of dividends paid and other adjustments.

The revaluation reserve represents the cumulative effect of revaluations of freehold land and buildings which are revalued to fair value at each reporting date.

Capital contribution reserve

The capital contribution reserve represents the contributions made to the Company from its immediate parent.

19. Financial commitments

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. pension charge cost represents contributions payable by the Company to the fund and mounted to £40,000 (2024: £40,000).

20. Net debt reconciliation

	Balance at 01 January 2025		Cash flows		Balance at 31 December 2025
	£		£		£
Cash at bank and in hand	3,632,162		( 666,688)		2,965,474
	3,632,162		( 666,688)		2,965,474
Debt due after 1 year	( 158,500,000)		86,748,300		( 71,751,700)
Debt due withing 1 year	( 47,540,044)		( 86,648,332)		( 134,188,376)
	( 206,040,044)		99,968		( 205,940,076)
Net debt	( 202,407,882)		( 566,720)		( 202,974,602)

The net debt position should read in conjunction with the current asset investments of £39,999,092, as highlighted in Note 11. This is due to the investments being held as colleterial against the loans. The true net debt of the company as at the year end once this is included is £165,992,650.

21. Statement of Cash Flows

	2025		2024
	£		£
Operating profit/(loss)	3,064,479		( 22,121,465)
Adjustment for:
Net fair value losses recognised in P&L	4,000,000		30,100,000
Operating cash flows before movement in working capital	7,064,479		7,978,535
(Increase)/decrease in debtors	( 277,431)		2,838,194
Decrease in creditors	( 1,356,916)		( 777,663)
Cash generated by operations	5,430,132		10,039,066
Income taxes paid	( 1,645,000)		( 1,055,978)
Net cash flows from operating activities	3,785,132		8,983,088

22. Related party transactions

During the year the Company received rental income of £5,102,093 (2024: £5,222,218) from Fitch Ratings Limited, a company in which the parent of minority shareholder, Hearst Colonnade Investment LLC, has an investment. At 31 December 2025 an amount of £Nil (2024: £Nil) was due from Fitch Ratings Limited.

During the year the Company received service charge income of £2,188,449 (2024: £2,121,071) from Fitch Ratings Limited, a company in which the parent of minority shareholder, Hearst Colonnade Investment LLC, has an investment. At 31 December 2025 an amount of £Nil (2024: £Nil) was due from Fitch Ratings Limited.

During the year the Company received other income of £1,360,391 (2024: £1,228,741) from Fitch Ratings Limited, a company in which the parent of minority shareholder, Hearst Colonnade Investment LLC, has an investment. At 31 December 2025 an amount of £Nil (2024: £Nil) was due from Fitch Ratings Limited.

As at 31 December 2025 the loan with Fimalac SE, including interest, owed was £57,406,802 (2024: £51,807,522). Interest on this loan of £2,707,371 (2024: £2,993,379) was paid in the year.

As at 31 December 2025 the short-term loan with Fimalac SE, including interest, owed was £33,737,177 (2024: £37,356,366). Interest on this loan of £1,337,177 (2024: £1,477,822) is outstanding at year end.

As at 31 December 2025 the loan with Hearst Colonnade Investment LLC, including interest, owed was £14,351,700 (2024: £12,951,880). Hearst Colonnade Investment LLC has a 20% indirect shareholding in the Company. Interest on this loan of £676,993 (2024: £744,066) was paid in the year.

As at 31 December 2025 the short-term loan with Hearst Colonnade Investment LLC, including interest, owed was £6,694,397 (2024: £6,645,339). Hearst Colonnade Investment LLC has a 20% indirect shareholding in the Company. Interest on this loan of £294,397 (2024: £245,339) is outstanding at year end.

23. Controlling party

At 31 December 2025, the ultimate parent company was Fimalac Participations, a company registered in France. The ultimate controlling party is Marc Ladreit de Lacharrière.