11. INVESTMENT PROPERTIES      
a) Summary of investment properties      
  Freehold
£’000		 Long
leasehold
£’000		 Total
£’000
At valuation 1st January 2005 151,764 4,808 156,572
Prior year restatement in respect of lease incentives (refer note 1(q)) (678) – (678)
As restated at 1st January 2005 151,086 4,808 155,894
Additions:      
– acquisitions 7,110 – 7,110
– capital expenditure 4,735 – 4,735
Disposals (24,314) (1,885) (26,199)
Surplus on revaluation 18,028 – 18,028
At valuation 31st December 2005 (restated) 156,645 2,923 159,568
Additions:      
– acquisitions 3,248 2,209 5,457
– capital expenditure 1,585 5 1,590
Transfer from operating properties 1,497 – 1,497
Transfer to investment property – held for sale (5,299) – (5,299)
Disposals (42,423) (2,750) (45,173)
Surplus on revaluation 21,790 31 21,821
At valuation 31st December 2006 137,043 2,418 139,461
 
b) Reconciliation of net book value of investment properties to the market value    
The following table reconciles the net book value of investment properties to their market value. The components of the reconciliation are included within their relevant balance sheet heading.
  2006
£’000		 2005
restated
£’000
Market value at 31st December assessed by the independent valuers or Directors 146,560 160,246
Amount included in prepayments and accrued income in respect of lease incentives (1,800) (678)
Less amounts reported as investment property held for sale (5,299) –
Book value of investment property at 31st December 139,461 159,568
     
The Group’s investment properties have been valued at 31st December 2006 by independent, professional valuers, DTZ Debenham Tie Leung, Chartered Surveyors or Colliers CRE, Chartered Surveyors, except for those investment properties valued by the Directors. Investment properties have been valued on the basis of market value in accordance with the Appraisal and Valuation Standards of the Royal Institution of Chartered Surveyors.

Included within the Group’s investment properties are freehold land, buildings and investment properties under development of £60,243,000 (2005: £52,915,000). These properties are held at Directors’ valuation and include finance charges capitalised of £2,641,000 (2005: £2,678,000). Included within Investment properties held at Directors’ valuation are certain assets that have also been valued by the Group’s independent valuers at £42,709,000 (2005: £34,213,000).

Market value has been assessed as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. A deduction is made to reflect purchaser’s acquisition costs and no special assumptions have been made except in the case of those properties held at Directors’ valuation where it is the Directors opinion that the valuation of an investment property under development should also reflect its future development potential in order to reflect its true fair value.

£112,327,000 (2005: £121,635,000) of investment properties are charged as security against the Group’s borrowings (refer note 16).

c) Investment property – held for sale
The asset available for sale represents an investment property for which a sale contract was exchanged prior to 31st December 2006. The sale was completed on 8th February 2007.