12 INVESTMENTS

  2007
£’000
2006
£’000
Investments in associates 842 673
Investments in joint ventures 8,379 20,464
Investments accounted for using the equity method 9,221 21,137

a) Investment in associates
The Group holds a 29 per cent interest in Continental Estates Corporation BV, a company incorporated and registered in The Netherlands, whose principal activity is the holding of investments. The equity investment of £256,000 has been provided against in full in previous years.

Wessex Property Fund is a trust that was established on 5th April 2006. Its principal activity is to invest in property situated in the South West of England. As at 31st December 2007 the Group held 47 per cent of the units in issue.

The Group holds 50 per cent of the Ordinary shares and 10 per cent of the Preference shares of Peacock Place Limited, a company incorporated and registered in Jersey, whose principal activity is property investment. The rights granted under the shareholder agreement for this company reflect the status of this investment as an associate.

The Group holds 25 per cent of the Ordinary shares of CTP Securities Limited, a company incorporated and registered in the United Kingdom, whose principal activity is property development. The rights granted under the shareholder agreement for this company reflect the status of this investment as an associate.

The Group’s share of assets and liabilities in its associates is set out below:

  2007  2006 
  Wessex
Property Fund
£’000
CTP
Securities
Limited
£’000
Peacock
Place
Limited
£’000
Continental
Estates
Corp. BV
£’000
Total
£’000
Peacock
Place
Limited
£’000
Continental
Estates
Corp. BV
£’000
Total
£’000
Summarised balance sheets:                
Non-current assets 10,170 667 7,585 367 18,789 11,665 413 12,078
Current assets 531 10,280 431 61 11,303 876 31 907
Share of gross assets 10,701 10,947 8,016 428 30,092 12,541 444 12,985
Current liabilities (323) (7,287) (988) (142) (8,740) (750) (95) (845)
Non-current liabilities (9,675) (3,521) (11,144) (902) (25,242) (11,118) (902) (12,020)
Share of gross liabilities (9,998) (10,808) (12,132) (1,044) (33,982) (11,868) (997) (12,865)
Share of net assets/(liabilities) 703 139 (4,116) (616) (3,890) 673 (553) 120
Share of losses not recognised 4,116 616 4,732 553 553
Group’s share of net assets 703 139 842 673 673
                 
Summarised income statements:                
Share of revenue 280 56 697 1,033 682 1 683
Share of post tax losses of associates (127) (26) (3,780) (62) (3,995) (292) (68) (360)
Share of losses not recognised 3,107 62 3,169 292 68 360
Share of losses recognised (127) (26) (673) (826)

b) Investment in joint ventures
The Group has the following interests in joint ventures:

  % of share
capital
  Country of
incorporation
Principal activity Joint venture partner
Wimbledon Phoenix Limited 50   United Kingdom Property development Foinavon Limited
Curzon Park Limited 50   United Kingdom Property development Grainger PLC
Hammersmith Central Unit Trust 10   Jersey Property development The National Bank of Dubai
Hammersmith Central General Partner Limited 10   United Kingdom Property development The Royal London Mutual
          Insurance Society Limited

The Group currently holds 39 per cent of the units in Hammersmith Central Unit Trust Limited. 10 per cent of the units, £231,000, are held as a long-term joint venture interest, with the remaining 29 per cent, £654,000, as an investment in joint venture – held for sale. It is the Group’s intention to sell the 29 per cent holding to a future investor in the Hammersmith Grove development.

The Group’s share of the assets, liabilities, income and expenses of its joint ventures, which include amounts receivable from those joint ventures, is as follows:

  2007 
  Hammersmith
Central
Unit Trust
£’000
Curzon Park
Limited
£’000
Wimbledon
Phoenix
Limited
£’000
Total
£’000
Summarised income statements:        
Net revenue 26 26
Administrative expenses (5) (5)
Finance income 36 36
Profit/(loss) before and after taxation 62 (5) 57
Summarised balance sheets:        
Non-current assets 231 19,209 325 19,765
Current assets 210 7 217
Current liabilities (206) (11) (217)
Non-current liabilities (11,386) (11,386)
Share of net assets 231 7,827 321 8,379

During the year, the Group acquired an additional 12.5 per cent stake in Luneside East Limited, taking the Group’s holding to 62.5 per cent. Luneside East Limited is now classified as a subsidiary and its results have been consolidated on that basis.

  2006 
  Curzon Park
Limited
£’000
Wimbledon
Phoenix
Limited
£’000
Luneside
East
Limited
£’000
Total
£’000
Summarised income statements:        
Administrative expenses (6) (6)
Finance income 157 157
Profit/(loss) before and after taxation 157 (6) 151
Summarised balance sheets:        
Non-current assets 20,020 222 241 20,483
Current liabilities (1) (18) (19)
Share of net assets 20,019 204 241 20,464

c) Principal subsidiaries
The Group has taken advantage of the exemption under s231 of the Companies Act 1985 and presents below only those undertakings with net assets in excess of 5.0 per cent of Group net assets.

The following were principal subsidiaries at 31st December 2007:

  % holding in ordinary
shares at 31st December 2007
  Principal activity
DS Property Developments Limited* 100   Property Development
Development Securities Estates PLC 100   Management and Investment Company
Development Securities (Investments) PLC 100   Property Investment
DS Jersey (No. 1) Limited 100   Investment
DS Jersey (No. 3) Limited* 100   Investment
DS Jersey (No. 7) Limited 100   Investment
Kirkby Centre (No. 2) Limited* 100   Investment

* indirectly held

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