Financial Statements
11 Investment, development and trading properties
| Prior year | Investment £m |
Development £m |
Trading £m |
Total £m |
|---|---|---|---|---|
| Carrying value at 1 April 2004 | 9,182 | 156 | 42 | 9,380 |
| Additions: | ||||
| – corporate acquisitions | 708 | 708 | ||
| – property purchases | 373 | 373 | ||
| – other capital expenditure | 90 | 46 | 136 | |
| 1,171 | 46 | 1,217 | ||
| Disposals | (69) | (6) | (75) | |
| Property transfer | 2 | (2) | ||
| Exchange fluctuations | 1 | 1 | ||
| Revaluations: | ||||
| included in income statement | 550 | 550 | ||
| included in consolidated statement of changes in equity | 12 | 12 | ||
| Increase in tenant incentives and guaranteed rent uplift balances | 40 | 40 | ||
| Carrying value of properties on balance sheet 31 March 2005 | 10,877 | 212 | 36 | 11,125 |
| External valuation surplus on trading properties | 57 | |||
| Head lease liabilities (note 18) | (28) | |||
| Total Group property portfolio valuation 31 March 2005 | 11,154 |
| Current year | Investment £m |
Development £m |
Trading £m |
Total £m |
|---|---|---|---|---|
| Carrying value at 1 April 2005 | 10,877 | 212 | 36 | 11,125 |
| Additions: | ||||
| – corporate acquisitions | 495 | 495 | ||
| – property purchases | 34 | 134 | 168 | |
| – other capital expenditure | 196 | 114 | 310 | |
| 725 | 248 | 973 | ||
| Disposals | (1,722) | (1,722) | ||
| Property transfer | 7 | (7) | ||
| Exchange fluctuations | 1 | 1 | ||
| Revaluations: | ||||
| included in income statement | 1,159 | 42 | 1,201 | |
| included in consolidated statement of changes in equity | 102 | 102 | ||
| Increase in tenant incentives and guaranteed rent uplift balances | 34 | 34 | ||
| Carrying value of properties on balance sheet 31 March 2006 | 11,081 | 597 | 36 | 11,714 |
| External valuation surplus on trading properties | 67 | |||
| Head lease liabilities (note 18) | (28) | |||
| Total Group property portfolio valuation 31 March 2006 | 11,753 |
At 31 March 2006, the Group book value of properties of £11,714m (2005: £11,125m) comprises freeholds of £11,017m (2005: £10,402m), virtual freeholds of £109m (2005: £96m); long leaseholds of £577m (2005: £618m) and short leaseholds of £11m (2005: £9m).
Investment, development and trading properties were valued by external valuers other than where stated on the basis of open market value in accordance with the Appraisal and Valuation Manual published by The Royal Institution of Chartered Surveyors:
| 2006 £m |
2005 £m |
|
|---|---|---|
| Knight Frank | 11,750 | |
| Atisreal Weatheralls | 10,802 | |
| FPD Savills | 2 | 282 |
| Jones Lang LaSalle (Republic of Ireland) | 69 | |
| CB Richard Ellis B.V. (Netherlands) | 1 | 1 |
| Total Group property portfolio valuation | 11,753 | 11,154 |
Properties valued at £7,709m (2005: £7,052m) were subject to a security interest and other properties of non-recourse companies amounted to £196m (2005: £42m).
Cumulative interest capitalised in investment and development properties amounts to £40m and £13m (2005: £37m and £4m) respectively. Included in leasehold properties is an amount of £32m (2005: £33m) in respect of property occupied by the Group. The historical cost of properties was £7,698m (2005: £8,149m).