Marks and Spencer 2010 Annual Report Download - page 104

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Marks and Spencer Group plc Annual report and financial statements 2010 Financial statements 100
Notes to the financial statements continued
15 Investment property
2010
£m
2009
£m
Cost
At start of year 25.3 25.3
Reclassification to property, plant and equipment (2.4) –
At end of year 22.9 25.3
Depreciation
At start of year (0.5) (0.3)
Reclassification to property, plant and equipment 0.1 –
Depreciation charge (0.1) (0.2)
At end of year (0.5) (0.5)
Net book value 22.4 24.8
The investment properties were valued at £24.8m (last year £23.1m) as at 3 April 2010 by qualified professional valuers working for
CB Richard Ellis, Chartered Surveyors, acting in the capacity of external valuers. All such valuers are chartered surveyors, being members of
the Royal Institution of Chartered Surveyors (RICS). The properties were valued on the basis of market value (calculated based on subleases
in place at the year end). All valuations were carried out in accordance with the RICS Appraisal and Valuation Standards. As the investment
properties are held at depreciated historical cost, this valuation has not been reflected in the carrying value of the assets. No impairment was
recognised on the one property which was carried at a higher value than its market value at 28 March 2009. The Group has reoccupied the
property during 2009/10 (and has subsequently been reclassified to property, plant and equipment) at which point its value in use exceeded
the net book value. The Group received rental income of £0.9m (last year £1.2m) in respect of these investment properties.
16 Investment in joint ventures
2010
£m
2009
£m
At start of year 13.8 9.6
Investment in new joint venture –4.4
Dividend from joint venture (2.0) –
Share of loss (0.3) (0.2)
At end of year 11.5 13.8
The joint ventures represent a 50% equity interest in Hedge End Park Limited, a property investment company incorporated in Great Britain,
and a 50% equity interest in Lima (Bradford) S.a.r.l, a property investment company incorporated in Luxembourg. The partner in the Hedge
End Park Limited joint venture is J Sainsbury plc and the partner in the Lima (Bradford) S.a.r.l joint venture is ProLogis UK Holdings S.A.
In relation to the Group’s interest in joint ventures, the assets and liabilities are shown below:
2010
£m
2009
£m
Non-current assets 5.5 4.9
Current assets 6.1 9.1
Current liabilities (0.1) (0.2)
Net assets 11.5 13.8
17 Other financial assets
2010
£m
2009
£m
Non-current
Unlisted investments 3.0 3.0
Current
Short-term investments1 165.0 47.1
Unlisted investments 6.7 6.0
171.7 53.1
1 Includes £132.8m of money market deposits held by the Marks and Spencer Scottish Limited Partnership.
Non-current unlisted investments are carried as available-for-sale assets. Other financial assets are measured at fair value with changes
in their value taken to the income statement.