Notes to the Financial Statements

13 Joint ventures’ summary financial statements

All joint ventures are held equally on a 50:50 basis BL Fraser Ltd BLT
Properties Ltd		 The Tesco British Land Property Partnership Tesco BL Holdings Ltd
Partners House of Fraser plc Tesco plc Tesco plc Tesco plc
         
Date established July 1999 November 1996 February 1998 November 1999
Accounting year end 29 January 31 December 31 December 31 December
         
         
Summarised profit and loss accounts £m £m £m £m
Gross rental income 14.3 15.3 10.1 26.6
Net rental income 14.0 14.7 9.7 25.2
Other expenditure (0.4) (0.4) (0.3) (0.4)
Profit (loss) on property trading        
Operating profit 13.6 14.3 9.4 24.8
Disposal of fixed assets        
Net interest – External (9.0) (10.9) (3.6) (13.7)
  – Shareholders (1.5) 0.8   (6.0)
Net interest (payable) receivable (10.5) (10.1) (3.6) (19.7)
Profit (loss) before tax 3.1 4.2 5.8 5.1
Taxation (0.5) (1.3) (2.1) (0.9)
Profit (loss) after tax 2.6 2.9 3.7 4.2
         
Summarised statements of total recognised gains and losses        
Profit (loss) retained for the year 2.6 2.9 3.7 4.2
Unrealised surplus on revaluation 29.9 26.1 18.7 74.8
Total recognised gains and losses relating to the financial year 32.5 29.0 22.4 79.0
         
Summarised balance sheets        
Investment properties at valuation 285.6 282.5 148.0 490.6
Development and trading properties at cost        
Total properties 285.6 282.5 148.0 490.6
Current assets 0.9 0.9 2.0 4.0
Upstream loans to joint venture shareholders   17.1    
Cash and deposits 5.9 9.3 11.8 17.9
Gross assets 292.4 309.8 161.8 512.5
Current liabilities (5.0) (7.4) (21.6) (12.1)
Bank debt falling due within one year (4.0)      
Bank debt falling due after one year (133.7) (184.6) (86.8) (314.0)
Debentures        
Deferred tax (5.0) (1.0) (1.2) (3.0)
Gross liabilities (147.7) (193.0) (109.6) (329.1)
Net external assets 144.7 116.8 52.2 183.4
Represented by:        
Shareholder loans 27.1      
Ordinary shareholders’ funds/Partners’ capital 117.6 116.8 52.2 183.4
Total investment 144.7 116.8 52.2 183.4
Capital commitments   24.1 2.5 2.6
Contingent tax 24.9 30.4 8.0 40.6
All joint ventures are held equally on a 50:50 basis BL Davidson Ltd* BL West† Companies The Scottish Retai Property Limited Partnership BL Rosemound Limited Partnership
Partners Manny Davidson, his family & trusts West LB, Westlmmo, and Provinzial Land Securities Group PLC Rosemound Developments Limited
Date established September 2001 September 2000 March 2004 March 2004
Accounting year end 31 December 31 December 31 March 31 March
         
Summarised profit and loss accounts £m £m £m £m
Gross rental income 28.1 17.1 33.1  
Net rental income 25.0 16.1 28.4  
Other expenditure (1.5) (0.3) (1.3)  
Profit (loss) on property trading 4.7     0.4
Operating profit 28.2 15.8 27.1 0.4
Disposal of fixed assets 15.7 (1.4)    
Net interest – External (15.0) (11.2) 0.3 (1.2)
  – Shareholders (0.2)      
Net interest (payable) receivable (15.2) (11.2) 0.3 (1.2)
Profit (loss) before tax 28.7 3.2 27.4 (0.8)
Taxation (4.6) 0.2 (8.2) 0.2
Profit (loss) after tax 24.1 3.4 19.2 (0.6)
         
Summarised statements of total recognised gains and losses
Profit (loss) retained for the year 24.1 3.4 19.2 (0.6)
Unrealised surplus on revaluation 109.0 18.0 39.5  
Total recognised gains and losses relating to the financial year 133.1 21.4 58.7 (0.6)
         
Summarised balance sheets        
Investment properties at valuation 589.4 181.0 604.5  
Development and trading properties at cost 19.2     36.6
Total properties 608.6 181.0 604.5 36.6
Current assets 10.8 0.2 5.6 1.1
Upstream loans to joint venture shareholders        
Cash and deposits 18.6 30.5 15.4 0.5
Gross assets 638.0 211.7 625.5 38.2
Current liabilities (52.9) (6.3) (23.1) (2.6)
Bank debt falling due within one year (41.5) (108.0)   (10.8)
Bank debt falling due after one year (93.8)     (10.0)
Debentures (114.8)      
Deferred tax (3.7)      
Gross liabilities (306.7) (114.3) (23.1) (23.4)
Net external assets 331.3 97.4 602.4 14.8
Represented by:        
Shareholder loans     39.8 16.6
Ordinary shareholders’ funds/Partners’ capital 331.3 97.4 562.6 (1.8)
Total investment 331.3 97.4 602.4 14.8
Capital commitments   0.4 0.5 32.6
Contingent tax 84.5   33.2  

* British Land’s share of negative goodwill is included in Current liabilities and amounts in total to £17.1m (2004: £19.2m).
† See note 29, Post balance sheet events

All joint ventures are held equally on a 50:50 basis Other joint ventures British Land share 2004 Comparative
Partners      
Date established      
Accounting year end      
       
Summarised profit and loss accounts £m £m £m
Gross rental income 2.2 73.4 78.9
Net rental income 1.9 67.5 72.7
Other expenditure (0.2) (2.4) (2.9)
Profit (loss) on property trading 0.1 2.6 (2.3)
Operating profit 1.8 67.7 67.5
Disposal of fixed assets 1.9 8.1 7.4
Net interest – External (0.3) (32.3) (40.0)
  – Shareholders 0.5 (3.2) (6.6)
Net interest (payable) receivable 0.2 (35.5) (46.6)
Profit (loss) before tax 3.9 40.3 28.3
Taxation   (8.6) (9.2)
Profit (loss) after tax 3.9 31.7 19.1
       
Summarised statements of total recognised gains and losses      
Profit (loss) retained for the year 3.9 31.7 19.1
Unrealised surplus on revaluation 7.0 161.5 65.3
Total recognised gains and losses relating to the financial year 10.9 193.2 84.4
       
Summarised balance sheets      
Investment properties at valuation 51.8 1,316.7 1,190.3
Development and trading properties at cost 6.4 31.1 31.5
Total properties 58.2 1,347.8 1,221.8
Current assets 2.9 14.2 11.8
Upstream loans to joint venture shareholders 35.8 26.5 28.2
Cash and deposits 2.9 56.4 38.0
Gross assets 99.8 1,444.9 1,299.8
Current liabilities (32.7) (81.9) (65.8)
Bank debt falling due within one year (0.1) (82.2) (21.4)
Bank debt falling due after one year (1.9) (412.4) (484.4)
Debentures   (57.4) (62.0)
Deferred tax (0.1) (7.0) (8.0)
Gross liabilities (34.8) (640.9) (641.6)
Net external assets 65.0 804.0 658.2
Represented by:      
Shareholder loans (3.1) 40.2 71.6
Ordinary shareholders’ funds/Partners’ capital 68.1 763.8 586.6
Total investment 65.0 804.0 658.2
Capital commitments 2.5 32.6 12.9
Contingent tax 4.0 112.8 81.5
The movement for the year: Consolidated   Parent
  Equity Loans Total    
  £m £m £m   £m
At 1 April 2004 586.6 71.6 658.2   80.4
Additions (0.2) 23.4 23.2    
Repayment of loans   (54.8) (54.8)   (54.8)
Share of profit attributable to joint ventures 31.7   31.7    
Dividends from joint ventures (15.8)   (15.8)    
Revaluation 161.5   161.5    
At 31 March 2005 763.8 40.2 804.0   25.6

The Group’s share of joint venture external net debt as at 31 March 2005 was £495.6m (2004: £529.8m). The Group’s share of the market value of joint venture debt and derivatives as at 31 March 2005 was £8.5m more than the Group’s share of the book value (2004: £14.9m).

The historical cost of joint ventures is £453.4m (2004: £376.8m). The amount of £25.6m (2004: £80.4m) includes £8.2m (2004: £63.0m) of loans to joint ventures by the parent. Outline details of the joint ventures are set out in the Joint Ventures section of the report.

The Group’s share of joint venture properties as at 31 March 2005 was £1,347.8m (2004: £1,221.8m).

All companies are property investment companies registered in England and Wales unless otherwise stated.