Notes to the accounts
10 Investment and development property
| Freehold £m |
Leasehold over 50 years £m |
Total £m |
|
|---|---|---|---|
| At 1 January 2007 | 4,699.4 | 3,487.7 | 8,187.1 |
| Additions | 424.9 | 636.9 | 1,061.8 |
| Disposals | (157.4) | (146.0) | (303.4) |
| Foreign exchange fluctuations | (6.2) | – | (6.2) |
| Deficit on valuation | (155.4) | (161.1) | (316.5) |
| At 31 December 2007 | 4,805.4 | 3,817.4 | 8,622.8 |
| Freehold £m |
Leasehold over 50 years £m |
Total £m |
|
|---|---|---|---|
| At 1 January 2006 | 3,904.7 | 3,033.1 | 6,937.8 |
| Additions | 496.2 | 243.0 | 739.2 |
| Disposals | (102.7) | (14.2) | (116.9) |
| Transfers from trading properties | 92.4 | 16.3 | 108.7 |
| Foreign exchange fluctuations | (40.2) | – | (40.2) |
| Gain on valuation | 349.0 | 209.5 | 558.5 |
| At 31 December 2006 | 4,699.4 | 3,487.7 | 8,187.1 |
| As at 31 December 2007 £m |
As at 31 December 2006 £m |
|||||
|---|---|---|---|---|---|---|
| Balance sheet carrying value of investment and development properties | 8,622.8 | 8,187.1 | ||||
| Adjustment in respect of head leases and incentives | 12.1 | 18.9 | ||||
| Market value of investment and development properties | 8,634.9 | 8,206.0 | ||||
| UK £m |
US £m |
Total £m |
||||
|---|---|---|---|---|---|---|
| Geographical analysis: | ||||||
| At 31 December 2007 | 8,245.5 | 377.3 | 8,622.8 | |||
| At 31 December 2006 | 7,833.5 | 353.6 | 8,187.1 | |||
Included within investment and development properties is £13.8 million (31 December 2006 – £3.3 million) of interest capitalised on developments and redevelopments in progress.
The group’s interests in investment and development properties were valued as at 31 December 2007 by independent external valuers in accordance with the Appraisal and Valuation Manual of RICS, on the basis of market value. Market value represents the figure that would appear in a hypothetical contract of sale between a willing buyer and a willing seller.