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32 URBAN DEVELOPMENT CORPORATION Notes to the Non-Consolidated Financial Statements (Continued) Year ended March 31, 2010



Development Bank of Jamaica (principal) Accrued interest

2010 $’000

2009 $’000







In the prior year, the corporation obtained from the Development Bank of Jamaica, a line of credit in the amount of $1,000 million of which $814 million (2009: $606 million) has been drawn down as at the reporting date. The loan carries a variable rate of interest of 7.75% per annum. During the year, the repayment dates by which both principal and interest are rescheduled to be repaid was amended to June 2012. The loan is secured by duly executed promissory notes together with specific securities as follows: (a) Hypothecation of shares in companies to be divested (Bloody Bay Development Limited and Pegasus Hotels of Jamaica Limited in the first instance) valued at approximately J$2,500 million. (b) Assignment of additional security (including first mortgage on lands assets) to maintain a security coverage loan ration of 1.6:1. (c) First mortgage on property known as “Room on the Beach” located in St. Ann and registered at Volume 1104 Folio 890 and Volume 1220 Folio 833 of the Register Book of Titles. 21.

Operating revenue The corporation’s revenue arises materially from project and other management fees, ticket sales, real estate sales and lease of properties.


Disclosure of expenses/(income) (a) Impairment losses: These arise on account of:

Accounts receivable Due from related parties

2010 $’000

2009 $’000

228,677 205,569

115,980 66,299



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