Notes to the Financial Statements

5 Net interest payable

    2005 2004
    £m £m
British Land Group      
Payable on: Bank loans and overdrafts 76.5 52.2
  Other loans 260.6 263.7
    337.1 315.9
Deduct: Development cost element (7.8) (13.3)
    329.3 302.6
Receivable on: Deposits and securities (9.4) (6.7)
  Loans to joint ventures (3.2) (6.6)
Other finance (income) costs: Expected return on pension scheme assets (2.7) (1.7)
  Interest on pension scheme liabilities 2.5 2.0
Total British Land Group   316.5 289.6

Interest on development expenditure is capitalised at a rate of 5.6% (2004: 4.7%).

Share of joint ventures    
Interest payable on shareholder loans 3.2 6.6
Other interest payable (net) 32.3 40.0
Total share of joint ventures (note 13) 35.5 46.6
Net interest payable 352.0 336.2

Exceptional item

On 2 March 2005 the Group incurred an exceptional charge of £180m whilst redeeming the securitised debt of Broadgate (Funding) PLC and 135 Bishopsgate Financing Limited. On the same day Broadgate Financing PLC issued £2,080m of new securitised debt in respect of the Broadgate Estate (see note 17). The pre tax exceptional item of £180m (post tax: £126m, after £54m tax credit), relates mainly to the difference between the redemption value and the carrying value of the redeemed debt.