As part of their survival bid Firstport were forced to sell their leasehold interests for residential house manager's flats and lease them back from the company they sold the leases to.
The deal was for around £30,000,000 with £10,000,000 being held back from Firstport to cover future rental payments.
Due to the timing of the Firstport accounts against the finally published Estates & Management accounts a previously undisclosed payment of £4,000,000 has been made by Firstport to Estates & Management.
According to notes to the Estates & Management accounts that show a one-off credit the explanation given is as thus:
The compensation income reprresents a one-off receipt to the company from a third party for waiving its rights under a contractual arrangement.
E&M Ltd had been entitled to receive remunaration for providing services in relation to a portfolio of house manager's flats owned by a third party.
During the year the third party divested their interest in this class of asset to a separate third party and as such E&M are no longer able to earn servicing income on these assets as it was contractually entitled to do so.
