Financial Statements
Strategic Report
Additional Information
Governance
12. Investments in subsidiaries The Company had the following principal subsidiaries as at 31 March 2022 and 31 March 2021: Name Place of incorporation
Ownership proportion
Picton UK Real Estate Trust (Property) Limited
Guernsey Guernsey Guernsey Guernsey Guernsey Guernsey Guernsey
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Picton (UK) REIT (SPV) Limited Picton (UK) Listed Real Estate
Picton UK Real Estate (Property) No 2 Limited Picton (UK) REIT (SPV No 2) Limited
Picton Capital Limited
England & Wales
Picton (General Partner) No 2 Limited Picton (General Partner) No 3 Limited Picton No 2 Limited Partnership Picton No 3 Limited Partnership Picton Financing UK Limited
England & Wales England & Wales England & Wales England & Wales
Picton Financing UK (No 2) Limited (established on 28 February 2022)
Picton Property No 3 Limited
Guernsey
The results of the above entities are consolidated within the Group financial statements. Picton UK Real Estate Trust (Property) Limited and Picton (UK) REIT (SPV) Limited own 100% of the units in Picton (UK) Listed Real Estate, a Guernsey Unit Trust (the ‘GPUT’). The GPUT holds a 99.9% interest in both Picton No 2 Limited Partnership and Picton No 3 Limited Partnership, the remaining balances are held by Picton (General Partner) No 2 Limited and Picton (General Partner) No 3 Limited respectively. 13. Investment properties The following table provides a reconciliation of the opening and closing amounts of investment properties classified as Level 3 recorded at fair value.
2022 £000
2021 £000
665,418 654,486
Fair value at start of year
9,551 25,005
Capital expenditure on investment properties
4,961
Acquisitions Disposals
–
(687)
(3,928) (3,830)
–
Transfer to owner-occupied property Acquisition of right of use asset Realised gains on disposal Fair value at the end of the year Historic cost at the end of the year Unrealised movement on investment properties
897 42
–
868
129,801
12,861
830,027 665,418 654,370 625,359
The fair value of investment properties reconciles to the appraised value as follows:
2022 £000
2021 £000
849,325 682,410
Appraised value
2,237 (4,168)
Valuation of assets held under head leases
1,313 (3,830)
Owner-occupied property Lease incentives held as debtors Fair value at the end of the year
(17,367) (14,475)
830,027 665,418 The investment properties were valued by independent valuers, CBRE Limited, Chartered Surveyors, as at 31 March 2022 and 31 March 2021 on the basis of fair value in accordance with the version of the RICS Valuation – Global Standards (incorporating the International Valuation Standards) and the UK national supplement (the Red Book) current as at the valuation date. The total fees earned by CBRE Limited from the Group are less than 5% of their total UK revenue. The fair value of the Group’s investment properties has been determined using an income capitalisation technique, whereby contracted and market rental values are capitalised with a market capitalisation rate. The resulting valuations are cross-checked against the equivalent yields and the fair market values per square foot derived from comparable market transactions on an arm’s length basis.
Picton Property Income Limited Annual Report 2022
129
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