Otterpool Park LLP: £2.2m Interest Owed on £24m Folkestone & Hythe District Council Loans — Explained

Otterpool Park LLP—the master-developer vehicle wholly controlled by Folkestone & Hythe District Council—has leaned ever more heavily on council loans while tangible progress on homes remains distant. The LLP’s Companies House accounts show “loans and other debts due to members” (i.e., to the Council) rising from £1.44m (31 Mar 2022) to £8.08m (2023), £16.10m (2024) and £23.98m (2025). 

The council’s own Draft Statement_of_Accounts_for 2024/25 confirms a long-term debtor “Loan to Otterpool Park LLP” of £23.978m and records £6.5m advanced during the year plus £73k of new equity. Audited 2023/24 accounts show the loan rising from £8.045m to £15.167m in that year alone.

How Much Interest Is Owed?

Otterpool’s own notes make the interest terms explicit: 6.1% per annum is accruing on member loans, with first repayments “likely to be paid in FY25-26.” The LLP also adopted a policy to capitalise borrowing costs into work-in-progress from 2022/23.

Using those disclosures and the year-end balances in the filed accounts, we estimate the cumulative interest owed (and largely capitalised) up to 31 March 2025 at ~£2.23m. That total comprises:

• 2021/22: £16,446 (per policy restatement)

• 2022/23: £258,103 (per policy restatement)

• 2023/24: ~£737,571 (6.1% on the average of £8.085m → £16.098m)

• 2024/25: ~£1,222,326 (6.1% on the average of £16.098m → £23.978m) = ~£2,234,446 to 31 March 2025. (Method: simple average-balance × 6.1% where exact draw-down dates are not disclosed.) 

Because intra-year timing isn’t published, a fair range for 2024/25 interest is ~£0.98m–£1.46m (6.1% on the opening vs. closing loan). The upper figure mirrors independent commentary from ShepwayVox (which quotes £1.462m if the £23.98m loan were outstanding all year). Our best estimate takes the midpoint of that range based on average balances.

What The Council’s Books Say

FHDC’s 2024/25 draft accounts not only log the £23.978m long-term debtor but also reiterate that Otterpool Park LLP is 99.9% owned by the Council and made an operating loss of £524k in the year (turnover £151k; tangible assets £19k).

Separately, audited 2023/24 accounts recorded turnover £110k and an operating loss of £753k for the LLP

Where The Money Is Going

On the LLP’s balance sheet, “stocks and work in progress”—principally land assembly, planning and enabling costs—has ballooned from £350,880 (2020/21) to £2.09m (2021/22), £8.72m (2022/23), £17.11m (2023/24) and £23.82m (2024/25). The notes confirm no impairment to date.

A Note On Discrepancies

ShepwayVox has highlighted mismatches between opening balances shown in the LLP’s 2023/24 filing and the council’s 2024/25 draft accounts. We can verify that the LLP shows £15.964m of member loan capital at 31 Mar 2024, whereas the council shows a £15.167m loan receivable at 1 Apr 2024—~£0.80m lower—with no published reconciliation in either document.

Why It Matters

The council’s strategy assumes future loan repayments (with interest) from Otterpool will help its medium-term budget position. But the LLP’s accounts show minimal recurring income and continuing operating losses, while debt and capitalised costs continue to climb—raising the stakes for delivery, partnering and land-sale receipts to validate the asset values on the balance sheet.

The Shepway Vox Team

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