11 Investments in equity accounted joint ventures
The Group has the following interests in significant joint ventures:
Claymore Roads (Holdings) Limited 50% share
Claymore Roads (Holdings) Limited is responsible for the upgrade and operation of the A92 between Dundee and Arbroath
in Scotland and is funded primarily by bank finance.
Community Solutions for Primary Care (Holdings) Limited 50% share
Community Solutions for Primary Care (Holdings) Limited carries out strategic development and regeneration projects in the
health sector.
Bluelight Holdings Limited 50% share
Bluelight Holdings Limited is a joint venture with Barclays Capital set up to hold the investment in a joint venture with Carden
Croft for the Dorset Emergency Services PFI scheme.
Morgan-Vinci Limited 50% share
Morgan-Vinci Limited is responsible for the construction and operation of the Newport Southern Distributor Road and is
funded primarily by bank finance.
Renaissance Miles Platting Limited 331/3% share
Renaissance Miles Platting Limited is a joint venture with IIC Miles Platting Equity Limited and Adactus Housing Association
to refurbish existing homes and build new homes on a mixed tenure development under a PFI arrangement for Manchester
City Council.
The Compendium Group Limited 50% share
The Compendium Group Limited is a company formed to carry out strategic development and regeneration projects of a
primarily residential nature.
Ashton Moss Developments Limited 50% share
Ashton Moss Developments Limited has developed a mixed use site in Manchester.
Bromley Park Limited 50% share
Bromley Park Limited has developed a site for housing in Kent acquired from the Ministry of Defence.
Chatham Place (Building 1) Limited 50% share
Chatham Place (Building 1) Limited is developing residential apartments and commercial units at Chatham Place, Reading.
English Cities Fund 12.5% equity participation
ECf is a limited partnership with English Partnerships and Legal & General to develop mixed use regeneration schemes in
assisted areas. Joint control is exercised through the board of the General Partner at which each partner is represented by
two directors and no decision can be taken without the agreement of a director representing each partner.
Eurocentral Partnership Limited 50% share
Eurocentral Partnership Limited is developing a large industrial site in Scotland comprising commercial premises adjacent to
Scotland’s Channel Tunnel rail freight terminal.
ISIS Waterside Regeneration 25% equity participation
ISIS Waterside Regeneration is a limited partnership between British Waterways and Warp 4 Limited Partnership (itself a joint
venture between Morley Fund Management and Muse Developments) to undertake regeneration of waterside sites. Joint
control is exercised through the board of the General Partner at which each of British Waterways and Warp 4 is represented
by three directors and no decision can be taken without the agreement of a director representing each partner.
Lewisham Gateway Developments Limited 50% share
Lewisham Gateway Developments Limited is redeveloping a mixed use site comprising retail, office, hotel, residential,
education, health and leisure space.
Lingley Mere Business Park Development Company Limited 50% share
Lingley Mere Business Park Development Company Limited is developing new office space and ancillary facilities at
Warrington in Cheshire.
North Shore Development Partnership Limited 50% share
North Shore Development Partnership Limited is creating a high quality extension to Stockton-on-Tees’ town centre in
partnership with Tees Valley Regeneration, Stockton Council and English Partnerships.
Ician Developments Limited 50% share
Ician Developments Limited has developed a large mixed use regeneration scheme in the Smithfield area of Manchester.
Investments in equity accounted joint ventures are as follows:
| 2008 £m |
2007 £m |
|
|---|---|---|
| At 1 January | 38.1 | 5.3 |
| Additions on acquisition | – | 24.5 |
| Equity accounted share of net profits for the year | 2.6 | 4.7 |
| Increase in investment | 12.4 | 5 |
| Movement on cash flow hedges | (0.1) | (1.4) |
| At 31 December | 53.0 | 38.1 |
The increase in investments in joint ventures during the year was mainly due to a loan investment in Warp 4 Limited Partnership.
Financial information related to equity accounted joint ventures:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Current assets (100%) | 310.0 | 266.3 |
| Non current assets (100%) | 289.2 | 247.1 |
| Current liabilities (100%) | (86.3) | (98.0) |
| Non current liabilities (100%) | (354.5) | (283.8) |
| Net assets reported by equity accounted joint ventures (100%) | 158.4 | 131.6 |
| Revenues (100%) | 184.8 | 117.5 |
| Expenses (100%) | (177.9) | (100.6) |
| Net profit (100%) | 6.9 | 16.9 |
Results of equity accounted joint ventures:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Group share of profits before tax | 3.6 | 7.4 |
| Group share of income tax expense | (1.0) | (2.7) |
| Group share of profits after tax | 2.6 | 4.7 |
Within non current assets are financial receivables of £123.1m (2007: £124.1m) which are carried at fair value. The fair values have been determined on the basis of discounting underlying future cash flows using a range of risk-adjusted discount rates between 7.0% to 7.3%, considered by the directors to reflect the risks attaching to the future cash flows.