Ipswich City Properties asset portfolio retains its value
AN EARLIER online story said that Ipswich City Council had written off over $34 million of debt because it represented a drop in the value of Ipswich City Properties' (ICP) assets.
That statement was incorrect.
The value of ICP's property assets remains unchanged at $30,900,000.
The write-off referred to in the earlier story results in an increase in the equity, or value of the company, by removing $34,071,000 of debt to council from its previous equity position.
This is an internal transaction between the council and ICP. It is anticipated that as the ICP land is developed over time the council loan will be fully repaid by land sales as development takes place.
THE $34,071,000 worth of debt written off by the council last financial year as 'debt forgiven' represents the drop in value of Ipswich City Properties' assets.
Ipswich City Council CEO Jim Lindsay said debt forgiven was "an internal transaction between Ipswich City Properties Pty Ltd and council".
"Council wrote off the debt to better reflect the value of the asset in accordance with sound accounting and asset valuations principles," Mr Lindsay said.
"Future sale of land and profits from the redevelopment of any land owned by ICP are required to go back to council in any event.
"It is forecast over the 15 year development horizon that the council loan will be fully repaid."
AS the Ipswich City Council was announcing its latest redevelopment plans for the mall, it also launched a new website detailing finances and assets held by private council-owned companies.
The companies have long been the subject of controversy with internal information out of public reach, unable to be requested under Freedom of Information.
With the promise of more transparency during the last election campaign, council has now launched websites on the four companies; Ipswich City Enterprises Pty Ltd, Ipswich City Developments Pty Ltd, Ipswich City Properties and the Ipswich Motorsports Precinct Pty Ltd.
Now, those websites are live and they include financial statements from Ipswich City Properties, the company that owns Ipswich City Square mall.
Those documents show shares in Ipswich City properties are worth $1 each and that 'payments to suppliers' for both 2015 and 2016 have totalled more than $4,600,000.
The financial statements also show the council has 'forgiven' $34,071,000 worth of debt between July 2015 and June 2016.
Each of the four companies has its own board of directors, detailed on the new website, none of which are paid for their director's positions.
Check out the website here.