Picton Property Income Limited Annual Report 2023

Financial Statements/Continued

Notes to the consolidated financial statements/Continued

12. Investments in subsidiaries The Company had the following principal subsidiaries as at 31 March 2023 and 31 March 2022: 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 Picton Financing UK (No 2) Limited Picton Property No 3 Limited

England & Wales England & Wales England & Wales England & Wales

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 and 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.

2023 £000

2022 £000

830,027 6,135 20,613

Fair value at start of year

665,418 9,551 25,005

Capital expenditure on investment properties

Acquisitions Disposals

– – –

(687) 897

Acquisition of right of use asset Realised gains on disposal

42

(110,433) 746,342 681,118

Unrealised movement on investment properties

129,801 830,027 654,370

Fair value at the end of the year Historic cost at the end of the year

The fair value of investment properties reconciles to the appraised value as follows:

2023 £000

2022 £000

766,235 2,081 (3,248) (18,726) 746,342

Appraised value

849,325 2,237 (4,168) (17,367) 830,027

Valuation of assets held under head leases

Owner-occupied property Lease incentives held as debtors Fair value at the end of the year

The investment properties were valued by independent valuers, CBRE Limited, Chartered Surveyors, as at 31 March 2023 and 31 March 2022 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

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