Financial Statements
12Funds and Joint Ventures
A detailed breakdown of the 100% results of specific funds and joint ventures is set out on the two facing pages, below and across. The total column represents the Group's share of all funds and joint ventures. All disclosures have been restated to British Land accounting policies under IFRS eliminating performance and management fees due to the Group.
Joint ventures' summary financial statements
| MSC Property Intermediate Holdings Ltd |
BL Sainsbury Superstores Ltd |
BLT Properties Ltd |
The Tesco British Land Property Partnership |
Tesco BL Holdings Ltd |
The Tesco Aqua Limited Partnership1 |
The Scottish Retail Property Limited Partnership |
||
|---|---|---|---|---|---|---|---|---|
| Partners | LSP Green Park Property Trust |
J Sainsbury plc | Tesco plc | Tesco plc | Tesco plc | Tesco plc | Land Securities Group PLC |
|
| Group share | 50% | 50% | 50% | 50% | 50% | 50% | 50% | |
| Date established | February 2009 |
March 2008 |
November 1996 |
February 1998 |
November 1999 |
March 2007 |
March 2004 |
|
| Accounting period | 7 weeks ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 March 2009 |
|
| Summarised income statements | £m | £m | £m | £m | £m | £m | £m | |
| Gross rental and related income | 10 | 62 | 17 | 7 | 29 | 30 | 21 | |
| Net rental and related income | 10 | 62 | 17 | 7 | 29 | 30 | 12 | |
| Other income and expenditure | (1) | (1) | 1 | |||||
| Net interest | - External | (6) | (36) | (9) | (2) | (18) | (29) | (6) |
| - Shareholders | ||||||||
| Net interest payable | (6) | (36) | (9) | (2) | (18) | (29) | (6) | |
| Underlying profit before taxation | 3 | 25 | 8 | 5 | 11 | 1 | 7 | |
| Deficit on revaluation | (14) | (226) | (69) | (18) | (113) | (65) | (108) | |
| Disposal of fixed assets | ||||||||
| Goodwill impairment | ||||||||
| Non-recurring items2 | ||||||||
| Loss on ordinary activities before taxation | (11) | (201) | (61) | (13) | (102) | (64) | (101) | |
| Current tax | (5) | (8) | ||||||
| Deferred tax | ||||||||
| Loss on ordinary activities after taxation | (11) | (201) | (66) | (13) | (110) | (64) | (101) | |
| Summarised balance sheets | ||||||||
| Investment properties | 1,165 | 964 | 255 | 94 | 492 | 532 | 179 | |
| Development properties | ||||||||
| Total properties | 1,165 | 964 | 255 | 94 | 492 | 532 | 179 | |
| Current assets | 12 | 3 | 3 | 3 | 2 | |||
| Upstream loans to joint venture shareholders | 21 | |||||||
| Cash and deposits | 23 | 18 | 6 | 3 | 9 | 14 | 5 | |
| Gross assets | 1,200 | 985 | 285 | 97 | 501 | 549 | 186 | |
| Current liabilities | (46) | (34) | (12) | (4) | (23) | (86) | (21) | |
| Bank debt falling due within one year | (315) | |||||||
| Bank debt falling due after one year | (185) | (45) | (485) | |||||
| Securitised debt | (831) | (697) | (119) | |||||
| Obligations under finance leases | (6) | (11) | ||||||
| Deferred tax | ||||||||
| Gross liabilities | (883) | (731) | (197) | (49) | (338) | (571) | (151) | |
| Net external assets (liabilities) | 317 | 254 | 88 | 48 | 163 | (22) | 35 | |
| Represented by: | ||||||||
| Shareholder loans | 2 | 2 | 57 | 14 | ||||
| Ordinary shareholders' funds/Partners' capital | 317 | 252 | 88 | 46 | 163 | (79) | 21 | |
| Total investment | 317 | 254 | 88 | 48 | 163 | (22) | 35 | |
| Capital commitments | 13 | |||||||
Funds' summary financial statements
| Hercules Unit Trust |
Hercules Income Fund |
Pillar Retail Europark Fund |
Other joint ventures and funds3 |
JV & fund total Group share 2009 |
JV & fund total Group share 2008 |
||
|---|---|---|---|---|---|---|---|
| Group share | 36.27% | 26.12% | 35.23%4 | At Group Share | |||
| Date established | Sep 2000 | Sep 2004 | March 2004 | ||||
| Accounting period | Year ended 31 March 2009 |
Year ended 31 March 2009 |
Year ended 31 December 2008 |
||||
| Summarised income statements | £m | £m | £m | £m | £m | £m | |
| Gross rental and related income | 118 | 7 | 36 | 14 | 159 | 117 | |
| Net rental and related income | 107 | 7 | 27 | 11 | 145 | 106 | |
| Other income and expenditure | (3) | (6) | (1) | (5) | (6) | ||
| Net interest | - External | (59) | (1) | (14) | (6) | (86) | (61) |
| - Shareholders | 1 | 1 | 1 | ||||
| Net interest payable | (59) | (1) | (14) | (5) | (85) | (60) | |
| Underlying profit before taxation | 45 | 6 | 7 | 5 | 55 | 40 | |
| Deficit on revaluation | (683) | (48) | (205) | (123) | (762) | (367) | |
| Disposal of fixed assets | (165) | (4) | (10) | (71) | 13 | ||
| Goodwill impairment | (3) | ||||||
| Non-recurring items | 9 | ||||||
| Loss on ordinary activities before taxation | (803) | (42) | (202) | (128) | (778) | (308) | |
| Current tax | (1) | 9 | 2 | 1 | |||
| Deferred tax | 24 | 1 | 9 | 1 | |||
| Loss on ordinary activities after taxation | (803) | (42) | (179) | (118) | (767) | (306) | |
| Summarised balance sheets | |||||||
| Investment properties | 1,535 | 81 | 479 | 188 | 2,775 | 2,889 | |
| Development properties | 49 | 49 | 119 | ||||
| Total properties | 1,535 | 81 | 479 | 237 | 2,824 | 3,008 | |
| Current assets | 138 | 2 | 28 | 20 | 92 | 57 | |
| Upstream loans to joint venture shareholders | 20 | 31 | 23 | ||||
| Cash and deposits | 63 | 3 | 15 | 24 | 92 | 102 | |
| Gross assets | 1,736 | 86 | 522 | 301 | 3,039 | 3,190 | |
| Current liabilities | (55) | (4) | (49) | (41) | (192) | (166) | |
| Bank debt falling due within one year | (14) | (46) | (207) | (2) | |||
| Bank debt falling due after one year | (272) | (71) | (525) | (712) | |||
| Securitised debt | (907) | (1,152) | (763) | ||||
| Obligations under finance leases | (9) | (6) | |||||
| Deferred tax | (6) | (2) | (9) | ||||
| Gross liabilities | (962) | (18) | (327) | (158) | (2,087) | (1,658) | |
| Net external assets (liabilities) | 774 | 68 | 195 | 143 | 952 | 1,532 | |
| Represented by: | |||||||
| Shareholder loans | 16 | 54 | 60 | ||||
| Ordinary shareholders' funds / Partners' capital | 774 | 68 | 195 | 127 | 898 | 1,472 | |
| Total investment | 774 | 68 | 195 | 143 | 952 | 1,532 | |
| Capital commitments | 13 | 1 | 12 | 79 | |||
Summary movement for the year of the investments in Funds and Joint Ventures
| Joint ventures £m |
Funds £m |
Total £m |
Equity £m |
Loans £m |
Total £m |
||
|---|---|---|---|---|---|---|---|
| At 1 April 2008 | 809 | 723 | 1,532 | 1,492 | 40 | 1,532 | |
| Additions | 183 | 49 | 232 | 214 | 18 | 232 | |
| Disposals | (1) | (1) | (1) | (1) | |||
| Reallocation of tax balances to Group | 15 | 6 | 21 | 21 | 21 | ||
| Share of loss after taxation | (384) | (383) | (767) | (767) | (767) | ||
| Distributions and dividends: | capital | (1) | (2) | (3) | (2) | (1) | (3) |
| revenue | (15) | (32) | (47) | (43) | (4) | (47) | |
| Hedging movements | (26) | 11 | (15) | (16) | 1 | (15) | |
| At 31 March 2009 | 580 | 372 | 952 | 899 | 53 | 952 | |
Notes to the Funds and Joint Ventures tables
1All joint ventures are non-recourse to the Group. Where a joint venture has net liabilities, as required under IFRS, the Group does not account for its share of the deficit in its total share of joint venture profits. All joint ventures are incorporated in the United Kingdom, with the exception of Eurofund Investments Zaragoza SL which is domiciled in Spain. Of the funds, HUT and HIF are domiciled in Jersey, and PREF in Luxembourg.
2Non-recurring items relate to the surplus arising on closing out interest rate derivatives following redemption of the related debt out of the proceeds of property sales.
3Included in the column headed 'Other joint ventures and funds' are contributions from the following: BL Fraser Limited, Fareham Property Partnership, the BL Goodman Limited Partnership, the Public House Company Limited, BL Gazeley Limited, BL Canada Quay Limited, EFI Zaragoza, the City of London Office Unit Trust (CLOUT), Auchinlea Partnership, Delavan Spain S.L. and Group adjustments. Amounts are included in this column at the relevant percentage for the Group's interest.
4When the fund is fully invested, this will reach approximately 40%. The Group share at 31 March 2008 was 30.26%.
These financial statements include the results and financial position of the Group's interest in the Tesco British Land Property Partnership, the Tesco Aqua Limited Partnership, the Scottish Retail Property Limited Partnership, the Fareham Property Partnership, the BL Goodman Limited Partnership, Auchinlea Partnership and the BL Residential Limited Partnership. Accordingly, advantage has been taken of the exemptions provided by Regulation 7 of the Partnerships and Unlimited Companies (Accounts) Regulations 1993, not to attach the partnership accounts to these financial statements.
At 31 March 2009, the investment in Joint Ventures included within the total investment in Funds and Joint Ventures was £585m (2008: £833m). Distributions in the year include the receipt of £25m from HUT, £4m from PREF, £4m (£2m capital) from CLOUT and £10m from Tesco Joint Ventures. At 31 March 2009 the Group's share of funds and joint ventures properties is £2,815m (2008: £3,002m); external net debt is £1,863m (2008: £1,378m) and the mark to market adjustment for external debt is £236m asset (2008: £74m asset).