Titanic Island profits staying afloat
Titanic Island is the Northern Ireland subsidiary of Jersey registered Titanic Investments, and the main property development company at the Queen's Island site.
Titanic Island is the parent company that owns a number of other subsidiaries connected with the development of the major Queen's Island projects.
The value of land and property held for development rose from £33m at the end of 2006 to £61m in December 2007. It rose again to £112m in 2009, fell to £110m a year later, and now at the end of 2011 (as development assets were sold) fell to £96m.
Working capital has been provided by the businesses of the main shareholders, including Harcourt Developments, alongside funds from the Ulster Bank.
The Phase 1 scheme of residential apartments was finished in late 2010 and 61% of the units (291) were occupied at the accounting date. Similarly, the Gateway Hotel and the Public Records Office have now been finished and opened.
Construction of the Titanic Signature Project is underway and scheduled to open in early 2012.
The Belfast Metropolitan College finished in August 2011 and began to operate for the academic year 2011-12.
Titanic Island is now returning substantial profits from its development activities. Operating profit in 2010, at £16m, was 25% of revenue earned, and after payment of interest on borrowed funds was near to £15m. The value of land held for development remains at over £95m even though £13m was transferred into assets which are being marketed.
Bank borrowing and funds from the main investors provided a financial base of £153m at the end of 2010. During 2010, the group subscribed £2.5m towards the Titanic Foundation, which is responsible for the Titanic Signature Project.