Financial Statements
10 Property
| Investment £m |
Development £m |
Owner- occupied £m |
Trading £m |
Total £m |
|
|---|---|---|---|---|---|
| Carrying value at 1 April 2006 | 11,081 | 597 | 36 | 11,714 | |
| Additions: – corporate acquisitions | 912 | 25 | 13 | 950 | |
| – property purchases | 267 | 58 | 325 | ||
| – other capital expenditure | 145 | 230 | 375 | ||
| 1,324 | 313 | 13 | 1,650 | ||
| Disposals | (666) | (1) | (667) | ||
| Reclassifications/appropriations | 58 | 8 | 50 | (48) | 68 |
| Revaluations: | |||||
| included in income statement | 1,049 | 4 | 1,053 | ||
| included in statement of recognised income and expense | 184 | 184 | |||
| Increase in tenant incentives and guaranteed rent uplift balances | 45 | 45 | |||
| Carrying value at 31 March 2007 | 12,891 | 1,106 | 50 | 14,047 | |
| Head lease liabilities (note 18) | (30) | ||||
| Total Group property portfolio valuation 31 March 2007 | 14,017 |
At 31 March 2007, the book value of owner-occupied property is £50m (2006: £nil) after charging £nil (2006: £nil) depreciation to the income statement for the year.
At 31 March 2007, the Group book value of properties of £14,047m (2006: £11,714m) comprises freeholds of £13,118m (2006: £11,017m); virtual freeholds of £106m (2006: £109m); long leaseholds of £820m (2006: £577m) and short leaseholds of £3m (2006: £11m). The historical cost of properties was £8,879m (2006: £7,698m).
The Group's total property portfolio was valued by external valuers on the basis of Market Value in accordance with the Appraisal and Valuation Standards published by The Royal Institution of Chartered Surveyors. Knight Frank LLP valued properties to an aggregate value of £14,015m (2006: £11,750m); other valuers £2m (2006: £3m).
During the year trading properties were appropriated to investment properties at market value, resulting in £68m being recognised in the income statement.
Properties valued at £9,194m (2006: £7,709m) were subject to a security interest and other properties of non-recourse companies amounted to £128m (2006: £196m).
Cumulative interest capitalised in investment and development properties amounts to £28m and £46m (2006: £40m and £13m) respectively.
| Investment £m |
Development £m |
Owner- occupied £m |
Trading £m |
Total £m |
|
|---|---|---|---|---|---|
| Prior year | |||||
| 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) | |||
| Reclassifications | 7 | (7) | |||
| Exchange fluctuations | 1 | 1 | |||
| Revaluations: | |||||
| included in income statement | 1,159 | 42 | 1,201 | ||
| included in statement of recognised income and expense | 102 | 102 | |||
| Increase in tenant incentives and guaranteed rent uplift balances | 34 | 34 | |||
| Carrying value at 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 |