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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
120
Other Notes
NOTE 33
RELATED PARTIES (continued)
33
2016
2015
$’000
$’000
Summary of transactions
Advisory, consulting, underwriting and management fees:
– received by subsidiaries from associates
999
262
– received by associates from subsidiaries
–
10,349
– rent income received by Parent company from associate
12
12
Purchases of pharmaceutical products from associate
5,868
5,671
Interest income from associate
984
248
The controlled entity, Pitt Capital Partners (PCP) owns 45% of Xact Property Solutions Pty Limited (XPS). As a result
of this ownership, XPS is an associate of PCP and the Group has equity accounted its share of the results of XPS.
XPS provided project management and related services for the development of the distribution warehouses that
were held within the 100% controlled entity, Australian Property Logistics Fund (ALPF). These properties were sold
in November 2014. Costs charged by XPS were capitalised in the carrying value of the investment properties and
recognised as income in the accounts of XPS.
During the prior year, total fees charged by XPS to ALPF totalled $10.349 million.
Loans to associates
During the year, the Parent company provided a stand-by loan facility of $20 million to TPI Enterprises Limited.
The amount owed at 31 July 2016 was $18.925 million. Interest is charged at market rates. The facility matures
on 30 September 2017.
During the prior year, the Parent company converted a loan balance of $7.0 million owed from TPI Enterprises
Limited to equity. All accrued interest was repaid prior to the debt conversion. Interest was charged at market
rates.