Annual Review Report & Accounts 2003

Annual ReviewReport & Accounts 2003

IPF I n v e s t m e n tProperty Forum

mission

To improve the awareness,

understanding and efficiency of

property as an investment, for

members and others in the wider

business community, by:

Undertaking research and

special projects;

Providing education; and

Encouraging discussion & debate.

2 The Investment Property Forum

4 Message from the Chairman

6 Report of the Management Board

11 Acknowledgements

12 2002 – 2003 Events

17 IPF Working Groups

19 Financial Statements

20 Report of the Directors

21 Report of the Auditors

22 Income & Expenditure Account

23 Balance Sheet

24 Notes on the Financial Statements

Contents

2

Management Board

PresidentAlastair Ross Goobey

ChairmanSteven Fogel

Vice ChairmanIan Marcus

Honorary TreasurerAndrew Martin

Members

Rob Bould

Michael Brown

Rupert Clarke

Peter Freeman

John Gellatly

David Hutton

Edward Luker

Paul McNamara

Martin Moore

Fiona Morton

Andrew Pettit

Nick Ritblat

Hapri Sehmi

Karen Sieracki

Mark Titcomb

Ian Womack

David Wright

The Investment Property Forum

3

Past Chairmen

Adrian Wyatt

Adrian White

Michael Boggis

Richard Catling

Ramsay Mason

Andrew Graham

John Whalley

Phillip Nelson

Mark Burton

Edward Luker

Stuart Beevor

Rupert Clarke

Martin Moore

Rob Bould

Life Members

Michael Mallinson

Robert Clarke

John Ritblat

Stuart Beevor

Andrew Graham

Alastair Ross Goobey

John Story

John Plender

John McLachlan

Sir Idris Pearce

Karen Sieracki

Executive

Executive DirectorAmanda Keane

Assistant DirectorVivienne Wootten

Office ManagerJenny Hooper

Events ManagerCeri Yates

Forum SecretaryPat Johnson

Research ConsultantStephen Palmer

4

I was appointed Chairman at a very exciting timefor the Investment Property Forum. The year hasbeen spent on a number of stimulatinginitiatives, including the development of theForum’s new vision; the joint IPF and IPFEducational Trust research programme; as well asthe invitation we received from the Treasury todiscuss the outlook for the investment propertymarket to end the year.

In the Autumn of 2002, the IPF ManagementBoard completed a review of its vision andstrategy for the future. It concluded that the IPF’sdevelopment over the next three years shouldcome from an ‘evolution’ rather than ‘revolution’on the basis that the Forum’s central objective toadvance the knowledge and understanding ofproperty as an asset class remains as applicabletoday as it did when the Forum was launched 15years ago. We also updated our missionstatement to reflect more accurately our roleboth inside and outside the property industry.Our new mission is now:

To improve the awareness, understanding andefficiency of property as an investment, formembers and other in the wider businesscommunity by:

• Undertaking research and special projects;• Providing education; and• Encouraging discussion and debate.

As an organisation we will continue to focus onimproving the awareness of the investmentcharacteristics of property and promotinginnovation and best practice in the marketthrough initiatives that enhance liquidity andefficiency. We do not however see our role as alobbying organisation, but where we can play arole, we will work with other bodies both insideand outside the property industry.

The Forum’s new research programme has alsobeen actively progressed throughout the year

under the chairmanship of John Gellatly. In 2002,a research project examining risk measurementand management for real estate investmentportfolios was completed and launched at theIPD/IPF Investment Conference in Brighton.Research by Kingston University examining socialresponsibility in property decision making isanother of the projects we are supporting. Wealso undertook a survey of the wholemembership aimed at helping us set our researchpriorities for the next three years.

Education continues to play a very important partin our activities. Each year the IPF holds over 40lectures, workshops and free member-only eventsin London, the Midlands and Scotland. Many arerun jointly with other industry bodies includingthe British Property Federation, the Society ofProperty Researchers and the Association ofProperty Bankers to name but a few. Our themeof working with non-property industry bodiesalso continues with successful joint events havingbeen held with the Institute of Actuaries and theUK Society of Investment Professionals. TheAdvanced Education Programme, now in its fifthyear, also continues to be in demand and in2002 we awarded our 50th IPF Diploma.

Our membership numbers grew over the year toan all time high of 1,450 members. We alsolaunched a new regional branch in the NorthWest to complement the excellent work beingdone by our Midlands and Scottish RegionalBoards. Two new Regional Chairmen were alsoappointed – Fiona Morton in Scotland andAndrew Brazier in the Midlands.

The Forum’s Executive Director, Amanda Keane,also represented the IPF on a trip to the USA,where she met with a number of US propertyassociations including the Pensions Real EstateAssociation, the Urban Land Institute and theNational Association of Real Estate Fiduciaries.Our aim is to build relationships with

Message from the Chairman

5

organisations outside the UK so we can provideIPF members with links to overseas markets. Wehope these relationships will develop further,providing IPF members with a range of benefitssuch as access to joint events and data.

In March, we were invited by the Treasury topresent our views on the outlook for the propertyinvestment market. A group of managementboard members met with a delegation ofTreasury staff and covered a whole range oftopics. Most important, we discussed theestablishment of a securitised, tax transparentproperty vehicle and felt the Treasury officialswere receptive and interested. The Treasury alsohighlighted a number of key research topics ofinterest to them. We plan to incorporate theseinto our research programme.

Looking to the year ahead, launching our newresearch programme and appointing a ResearchDirector will be major initiatives for us. We willbe collaborating again with IPD on the annualinvestment conference in November and you willalso see a new IPF logo, which we hope after 15years of using our original one, reflects a morecontemporary image.

I hand over in June to Ian Marcus of CreditSuisse First Boston, and I wish him all the best inthe Chair. I also want to thank the executive staffand all the volunteers who sit on IPF committeesand working groups, without which the Forumwould not be the success it is today.

Steven FogelChairman, May 2003

Report of the Management Board

John Story Unilever Pension Fund Chairman

Andrew Adams Edinburgh University Module leader

Philip Booth Cass Business School Module leader

Ciaran Carvalho Dechert

Mark Charlton PricewaterhouseCoopers

Philip Clarke Morley Fund Management Module leader

Neil Crosby University of Reading

Paul Gallimore Nottingham Trent University Module leader

Philip Ingman SPREFS

Tony Key Cass Business School

Lynette Lackey BDO Stoy Hayward

Ian Marcus Credit Suisse First Boston

George Matysiak University of Reading Module leader

Bryan MacGregor University of Aberdeen

Guy Morrell Henderson Global Investors

Jeremy Newsum Grosvenor

Charles O’Connor Cass Business School Module leader

Dominic Reilly Kingfisher Property Finance

Jeremy Robson Royal Bank of Scotland

Tim Sketchley Cushman & Wakefield Healy & Baker

Maggie Stoker MSC

Brian Waldy Consultant Module leader

Derek Nicholls Cambridge Int. Land Institute Prog’me Director

William Rodney Cass Business School Technical Director

Table 1: The AEP Academic Faculty Board

The Management Board is pleased to present itsreport for the year ending 31st March 2003.

Membership

Membership of the Forum continues to rise andby 31 March 2003, the number of members hadreached 1450. Core membership is made up ofthose from traditional property backgrounds suchas consultancies, property companies andinstitutions but increasingly active are the non-traditional players including bankers, actuariesand lawyers. This group now makes up 25% ofthe membership.

The bulk of the membership is UK based witharound 1% based overseas. In terms of UKmembership, 80% of members are based inLondon and the South East. However, activeregional boards in the Midlands and Scotlandcontinue to ensure that the IPF has a powerfulregional presence. In addition, during 2002/3 aregional board was established in the North Westof England and recruitment of members in thatarea also commenced.

Education Programme

Advanced Education ProgrammeThe IPF’s Advanced Education Programme (AEP)is now a very well established educationprogramme in the industry. It has benefited fromconsistently positive feedback from participants,particularly with regard to content, pitch ofmaterial covered and quality of presentation.Launched in 1999, it has now attracted over 260participants and in 2002 the fiftieth IPF Diplomawas awarded. The course, run on the Forum’sbehalf by Cambridge International Land Institute,comprises seven modules as follows:

• Property as an Asset Class • Accounting & Taxation for Property Investors • Introduction to Investment Valuation &

Portfolio Theory • Financial Instruments & Investment Markets • Advanced Property Investment Appraisal • Advanced Property Finance & Funding • Advanced Portfolio Management

In early 2003, a new AEP Academic FacultyBoard was appointed to support the work of thecourse team. The Faculty is drawn from wellqualified and experienced practitioners,academics and researchers in the investment

6

Table 1: The AEP Academic Faculty Board

Kevin Aitchison ING Real Estate Investment Management

Andrew Blackshaw PricewaterhouseCoopers

Lois Blair NBW Crosher & James

John Carleton

James Carter Plymouth & South West Co-op

Peter Conboy Leicester Regeneration Company

Amanda Cowking Standard Life Investments

Deepan Khiroya Royal & Sun Alliance Property Investments Ltd

Pamela Matthesius Eurohypo AG London

Daniel McHugh Standard Life Investments

Alan Mitchell Kilmartin

Eri Mitsostergiou FPD Savills

Philip Nell Morley Fund Management

Richard Quartermaine NBW Crosher & James

Melville Rodrigues Mayer Brown Rowe and Maw

Kimberley Rowley Chartwell Land

David Skinner DTZ Pieda Consulting

David Stewart Standard Life Investments

John Story Unilever Pension Fund

IPF Educational Trust John Whalley Prize for performance in the Diploma

Richard Quartermaine NBW Crosher & James

IPF Educational Trust Module Prize for performance in a Module

Andrew Blackshaw PricewaterhouseCoopers

Table 2: Prizes for Outstanding Performance on the AEP in 2002

Table 3: IPF Diplomas in 2002 were awarded to:

field. Its purpose is to provide a substantial poolof qualified members, many of whom willcontribute to the taught elements of the modulesand ensure that the course content continues tobe practical, relevant and up to date (Table 1).

Two prizes were again awarded for outstandingperformance on the AEP in 2002 (see Table 2)and IPF Diplomas were awarded to 19candidates (Table 3).

Lectures and WorkshopsThe evening lecture and workshop programmecontinues to be extremely popular with bothmembers and non-members. We also run a rangeof free member only meetings throughout theyear. Regular events are currently held in London,Scotland and the Midlands. A full listing iscontained on pages 12–16.

7

The choice of one-day workshops on offer hasalso been expanded in response to memberdemand. The programme included sessions onthe implications for property investors of theFinancial Services and Markets Act 2000,property risk and applied quantitative analysis forproperty investment & finance.

Research

In November 2001, Stephen Palmer of SevenDials Consulting was engaged as the IPF'sResearch Consultant with a brief to develop asustainable research strategy for the IPF. Abusiness plan encompassing recommendationson the structures, processes, staff resources andfunding required, was approved by the IPFManagement Board in July 2002. Since that timethe IPF has been putting in place some of thekey elements to realise its aim of developing aforward-looking programme that delivers highquality independent research. Further progress isto be expected in 2003/2004.

Over the last year, three research projects havebeen taken forward by the Forum:

• Risk measurement and management for realestate investment portfolios – a project team ofthree leading academics/consultants wasengaged in April 2002 to build upon earlier workcommissioned by the IPF. Portfolio riskmeasurement and management techniques havebeen imported into real estate, oftenunquestioningly, from other financial markets.The project team's report, submitted in October2002, explores what is possible in a real estatecontext, while setting out the practical steps thatproperty fund managers should take to developtheir approaches to risk management andmeasurement. This report has provided thesubstance for three IPF seminars including a jointevent with the Institute of Actuaries. It was

funded by the IPF Educational Trust, with supportfrom industry donors including Brixton Plc,Grosvenor, ING Real Estate, King Sturge, MorleyFund Management, Prudential PropertyInvestment Managers and Schroder InvestmentManagement.

• Integrating social responsibility into propertyinvestment practice – a project that aims to finda means of encouraging the property investmentcommunity and property occupiers to includesocial responsibility as a significant criterionwithin property decision making. This aim will beachieved by the development of an analyticaltool that will allow sustainability criteria to bereflected in the appraisal of commercialbuildings, through application of this analyticaltool in the revaluation of a sample range ofbuildings and development of a pilot propertyinvestment index. This project commenced inSeptember 2002, and it will be completed inSeptember 2004. The IPF Educational Trust iscontributing £9,000 to the total cost of£174,000 for this project.

• Identification of the UK property industry'sresearch priorities was recommended in theresearch business plan, and academics from theUniversities of Reading, Western Sydney and SanDiego were commissioned to undertake thiswork, building on previous studies in theAustralia and the US. A survey was conducted inMarch 2003, and the results will provide a usefulbasis for developing the IPF's research agenda inthe coming months. This project was funded bythe IPF Educational Trust.

In addition to these research projects, the IPFcontinues to compile and publish regularconsensus forecasts for the commercial propertysector, together with quarterly updates ofinvestment intentions.

8

Report of the Management Board continued

Marketing and Communications

The website continues to provide members witha showcase on the IPF and its activities. Anincreasing number of members are now bookingtheir places at events on-line and the executiveteam are now able to send electronicconfirmation of bookings, maps, delegate lists etcin response.

In addition, a monthly email update is sent to allmembers. Using this mode of communicationensures that members are kept fully up to dateand increasingly given the opportunity to takeadvantage of special discounts negotiated withother organisations. In 2002/3 this includeddiscounts on entry to a number of conferencesand exhibitions.

A review of the IPF’s corporate identity also tookplace in 2002/3. After a long period of discussionand debate by the IPF Management Board and anumber of its committees, a new logo designwas agreed and was launched in April 2003, tobe rolled out over the next 12 months.

Annual Conference

The IPF collaborated once again with theInvestment Property Databank in holding its thirdjoint property investment conference inNovember 2002. Over 300 delegates attendedthe conference, which took place in Brighton.During the conference four key issues wereexplored:

• Property and the flow of capital:– Property and the City – how well equipped is

London to compete internationally?– Property and our savings – does our industry

get sufficient attention from financial supervisors and regulators?

• Property in its proper context:– How does our industry contribute to

national life?– What are the strengths and weaknesses?– How is our role in society rated on economic,

urban quality and social issues?

• The property offer and investment styles:– What lessons can be learnt from studying fund

management styles of other countries?– Can property deliver tailored risk-return

profiles?– How would a more varied offer influence the

weight of property in portfolios?

• Can property companies become fund managers:

– Are property companies suitably equipped to become fund managers?

– What are the different approaches of those entering this market?

– What are the issues they need to address?

In addition, last year’s keynote session whichlooked at the case for a single voice for propertywas revisited and a panel of speakers reviewedwhat progress had been made towards achieving this.

Social Events

In London the Annual Dinner, the largest event inthe IPF calendar, took place in June at the LeMeridien Grosvenor House. Over 1400 guestsattended the event at which John Humphrys wasthe after dinner speaker. After the formalproceedings had finished, guests participated inthe charity casino. All profits raised at the casinowere donated to two charities: the IPFEducational Trust and this year's Chairman'scharity, Motivation.

In January, the IPF Annual Lunch was also heldat the Le Meridien Grosvenor House in London.

9

10

Report of the Management Board continued

At this event over 1000 guests heard fromHamish McRea, Economics Editor with theIndependent newspaper. A new Life Member ofthe Forum was announced at the lunch –Karen Sieracki was recognised for heroutstanding contribution to the Forum in theareas of education and research.

In addition to the London events, the MidlandsRegion also held its Annual Dinner in October atthe ICC in Birmingham. The IPF President,Alastair Ross Goobey, performed the role of afterdinner speaker in front of an audience of over500 guests.

In June 2002, the summer's lunchtime MemberForum visit saw over 50 members attend a talkgiven by Tony Pidgely, Managing Director of TheBerkeley Group, on the residential investmentmarket and the particular approach to adoptedby Berkeley Homes. Many thanks to The BerkeleyGroup who provided the hospitality and also toMatthew Allen of DTZ Corporate Finance andPeter Braithwaite of DTZ Residential for theirinput and ensuring that the visit was aresounding success.

In March 2003, the first members ‘Hot Property’party took place in Birmingham. This was a sell-out event at which the ‘Booze Band’ performedand all profits raised from the event weredonated to Acorns Children’s Hospice. The eventwas kindly sponsored by Industrious, Henry BootDevelopments, Barberry, Pinsent Curtis Biddleand DLA.

For the second year running the IPF supportedthe Estates Gazette Property Investment Awards.Held at the offices of Nabarro Nathanson,members were invited to attend a champagnereception which followed the short presentationat which eight fund managers of the bestperforming funds, as measured by IPD, werepresented with awards.

Finances

The IPF set about 2002/03 with some challenges– concern about income in an uncertain marketand with the ambition to fund the set up of theresearch programme. To do this the Boardrecognised it needed to dip into reserves but atthe same time vowed to control costs. It is theaim to maintain a minimum of one year’s costs inreserves – yet another challenge in anincreasingly active annual programme.

The Board is delighted that the outcome is betterthan predicted and this has been wholly due tothe control of cost expenditure, resulting in amodest surplus this year. These savings havebeen delivered without any impact on services tomembers and through the actions of theExecutive and the Board.

Next year will again provide challenges but willsee the IPF in a still stronger position to meet itsobjectives. With programmes in place to increasemembership, the introduction of sponsorship ofevents and added revenues from the educationprogramme as well as cost savings, the Boardhopes it can again report an improved positionfor 2003/04.

IPF Management BoardMay 2003

11

The IPF would like to thank the followingorganisations that hosted IPF lectures and eventsthis year:

Abbey NationalAberdeen Property InvestorsBerwin Leighton PaisnerBDO Stoy HaywardClifford ChanceCMS Cameron McKennaDechertDeutsche Property Asset ManagementDTZ Debenham Tie LeungDundas & WilsonGLAGrosvenorHerbert SmithInstitute of ActuariesISMA Centre – University of ReadingLinklatersLovellsNabarro NathansonPinsent Curtis BiddlePricewaterhouseCoopersPrudential Property Investment ManagersSainsbury’sSchroder Property Investment ManagementSimmons & SimmonsStandard Life Investments

Acknowledgements

12

Private investors: A new force in the property investment market

Nigel Bennett Deutsche Asset Management

William Hill Schroder Property Investment Management

David Mitchell Scottish Widows

Ian Blake Matrix Securities

Robin Christie Primepitch

Flexi leases: Do they add value?

Andrew Baum Oxford Property Consultants

Tony Key IPD

Michael Brodtman Insignia Richard Ellis

Michael Andrews Brixton

The UK commercial property lending market:Is it over borrowed?

Liz Peace British Property Federation

Bill Maxted De Montford University

Sir Howard Davies The Financial Services Authority

Simon Wilkinson Bradford & Bingley

The investment universe:Is the UK a good deal?

Gerard de Gunzburg Macquarie Capital Partners

Joe Valente DTZ Debenham Tie Leung

Kevin Reid The Peabody Group

Thomas Hoeller TMW Immobilen AG

Brett Newman Challenger International Ltd Group

Introduction to applied quantitative analysisfor property investment & finance

Bill Rodney City University Business School

George Matysiak CB Hillier Parker

PASS: Property applied spreadsheets & systems

Natalie Bayfield Bayfield Training

New year – new lease code II

Andrew Martin Strutt & Parker

Philip Freedman Mishcon De Reya

Martin Moore Prudential Property Investment Managers

Francis Salway Land Securities


Richard Bartholomew Boots Properties

Peter Denton Deutsche Bank

Graham Chase RICS

Limited partnerships: Short term fashion or long term investment?

Michael Brown Helical Bar

John Gellatly Credit Suisse First Boston

Miranda Cockburn Credit Suisse First Boston

Ian Cockburn Lend Lease

Nick Thompson Prudential Property Investment Managers

Lecture and Workshops – London

2002–2003 Events

13

Option pricing and property:Putting it to the test!

Colin Beardsley University of Reading


Property portfolio allocation:From the big to the small

Karen Sieracki KASPAR Associates

Andrew Tunningley Hewitt Bacon & Woodrow

Simon Cooke Deutsche Property Asset Management

Adam Seitchik Deutsche Asset Management

The new lease code in practice:Six months on


Andrew Smith Aberdeen Property Investors

Patrick Marples Workspace Group

Nigel Almond & Jones Lang LaSallePhilip Wakeling

Duncan Preston Jones Lang LaSalle


Arthur Housden Boots Properties

Barry Moody Lovells

Stamping down on the property sector?


Mark Stapleton Dechert

Nick Mansley Morley Fund Management

Jeremy Lock DTZ Debenham Tie Leung

Introduction to applied risk for property

Bill Rodney City University Business School



Is there a case for a global real estate strategy?

David Hutton Lend Lease

Darren Rawcliffe Grosvenor

Paul McNamara Prudential Property Investment Managers

Tony Edgley Jones Lang LaSalle Corporate Finance

Property cycles: Are they a myth?


Richard Barras Property Market Analysis

Tony Key IPD

Michael Perkins Lend Lease

FSA approved persons regime & property

Maggie Stoker Maggie Stoker Financial Training


Nadia Swann Linklaters

Martin McCarthy Jones Lang LaSalle

14

Property in a low growth environment:Do we mention the ‘D’ word?


John Plender Financial Times


John Hawksworth PricewaterhouseCoopers

Philip Lewis Hines UK

Portfolio risk: Are property fund managersfooling themselves?


Philip Booth Cass Business School


Paul Ormerod Volterra Consulting

Fragile forecast – handle with care!

Colin Lizieri University of Reading

George Matysiak University of Reading

Neil Blake Experian Business Strategies

Andy Schofield Henderson Global Investors

The new lease code

Donald Shaw Dundas & Wilson

Martin Moore Prudential Portfolio Investment Managers


Property leverage:Are we exposed?


Ralph Wood AXA

Tim Lineham Hermes

William Roxburgh Roxburgh & Co.

What credit risk means in the modern market?


Jeremy Robson Royal Bank of Scotland

Paul Connellan Benchmark Group

Mark Callender IPD

Max Sinclair Eurohypo AG

Indirect investment in Europe:How does the land lie?


Fredrick Elwing Credit Suisse First Boston

Marcus Phayre-Mudge TR Investment Trust


Peter De Haas PGGM

Property derivatives:A revolution for investors?


Tom Wills Morley Fund Management

Charles Weeks Aberdeen Property Investors


Lecture and Workshops – Scotland

2002–2003 Events continued

15

Flexileases:Do they add value?


Andrew Jackson Standard Life Property Investments

Structuring tax efficient property vehicles

Iain Doran Dundas & Wilson


Douglas Wilson The Kintyre LLP

Stamp duty:What do we do now?

Peter Freeman Freeman Publishing

Ian Hyde Pinsent Curtis Biddle

Lee Nuttall Wragge & Co

Gordon Keenay KPMG LLP

Lecture and Workshops – Midlands

Members’ Meetings

London

Thames Valley offices – a business opportunity or another burst bubble?

Nick Price Property Market Analysis

Chris Hiatt Jones Lang LaSalle

Harshad Thanki HSBC Investment Bank

Andrew Vander Mersch Global Switch

Transport for London

Stephen Mundy Legal & General

Jeremy Edge ATIS Real Weatheralls

Greg Lomax GLA

Richard Colt Gracemark Investments

Rediscovering real estate(joint with the Institute of Actuaries)

Alistair Ross Goobey


Paul Ormerod Volterra Consulting



The outlook for UK economy and property in 2003

Roger Bootle Capital Economics

Peter Damesick Insignia Richard Ellis

Alan Carter Citigroup

Property overvalued and Illiquid?(joint with UKSIP)

Nick Mansley Morley Fund Management

Paul Clarke Property Market Analysis

John Wythe Prudential Property Investment Managers

16

Is the property market overborrowed?

Bill Maxted De Montford University

David Smith Anglo Irish Bank

Midlands

Social Events

London

IPF Annual Dinner – June 2002

Speaker: John Humphrys

Midlands

Midlands Annual Dinner – October 2002

Speaker: Alastair Ross Goobey President – IPF

Hot Property Event – March 2003

The Jam House, Birmingham

IPF Annual Lunch – January 2003

Speaker: Hamish McRae

Lunchtime Forum Visit – Chelsea Bridge Wharf

Speaker: Tony Pidgley The Berkeley Group

2002–2003 Events continued

New lease code

Martin Moore Prudential PropertyInvestment Managers


Fiona Morton Ryden

Outlook for property and property lending

Jeremy Peat Royal Bank of Scotland

Donald Kerr HBOS

Roddy Elliott Royal Bank of Scotland

Scotland

17

IPF Working Groups

Education Strategy Group


Philip Clark Morley Fund Management

Simon Clark Linklaters





Amanda Keane Investment Property Forum

CPD Group


Lynette Lackey BDO Stoy Hayward

Patrick McAllister University of Reading

Paul Kennedy INVESCO

Rory Hardick Macquarie Capital Partners


Alan Patterson HSBC


Michael Brown Helical Bar

Ciaran Carvalho Dechert

Francis Salway Land Securities


Mervyn Howard Grosvenor

Richard Barkham Grosvenor

Stuart Grant Blackstone Group International


IPF Midlands

Andrew Brazier Ryon Properties

Andrew Yates Pinsent Curtis Biddle

Hapri Sehmi FPD Savills

David Smith Anglo Irish Bank Corporation

Nick Harris Miller Developments

Mark Alexander AMEC Developments

IPF Scotland

Fiona Morton Ryden

Alan Howie Aberdeen Property Investors

Andrew Jackson Standard Life Investments

Donald Shaw Dundas & Wilson

Graham Sanders Sanders Cartwright

Roddy Elliott Royal Bank of Scotland

Douglas Wilson Kintyre

Bryan MacGregor Aberdeen University

Andrew White Kenmore Property Group

IPF North West

Andrew Hawkins Jones Lang LaSalle

Geoff Hill Co-op Insurance Services

John Carleton

Peter Kershaw Addleshaw Booth

Charles Hubbard Edmund Kirby

Andrew Darke Barlows

Robert Howe Green Property

18

Academic Committee


Derek Nicholls Cambridge International Land Institute

Carol Moore Cambridge International Land Institute

Mark Pendower Greenwich Estates

Bob Dyson Dunlop Heywood Lorenz



Members’ Meetings Group

Paul Clark Property Market Analysis

Andrew Hynard Jones Lang LaSalle

Chris Perkins Prudential Property Investment Managers


Nigel Bennett Deutsche Asset Management

Richard Colt Gracemark Investments


Research



Tony Key Cass Business School

Robin Goodchild LaSalle Investment Management

Stuart Beevor Grosvenor

Phillip Nelson Nelson Bakewell


Stephen Palmer Investment Property Forum

Membership

Rupert Clarke Jones Lang LaSalle

Edward Luker Insignia Richard Ellis


Steven Fogel Dechert

Vivienne Wootten Investment Property Forum


Vision Committee



Rob Bould GVA Grimley

Steven Fogel Dechert

Martin Moore Prudential Property Investment Managers



Ian Marcus Credit Suisse First Boston


IPF Working Groups continued

19

Financial StatementsInvestment Property Forum Ltd (a company limited by guarantee)

Year ended 31 March 2003

Principal Officers, Advisors and Addresses

Registered Office3 Cadogan GateLondonSW1X 0AS

AuditorsBDO Stoy HaywardEmerald HouseEast StreetEpsomSurreyKT17 1HS

SolicitorsNabarro NathansonLacon HouseTheobald’s RoadLondonWC1X 8RW

BankersNational Westminster Bank PLC1-4 Berkeley Square HouseBerkeley SquareLondonW1A 1SN

Company Number2763992

20

The directors submit their report together withthe audited financial statements for the yearended 31 March 2003.

Principal activity

The Forum’s objective is to improve theawareness, understanding and efficiency ofproperty as an investment, for members andothers in the wider business community, by:

• Undertaking research and special projects;• Providing education; and• Encouraging discussion and debate.

Results

The income and expenditure account is set out onpage 22 and shows the results for the year.

The company is prevented by its constitution fromdistributing any excess of income over expenditure.

Directors

The directors in Table 4 have served during the year.

Directors’ responsibilities

Company law requires the directors to preparefinancial statements for each financial year whichgive a true and fair view of the state of affairs ofthe company and of the profit or loss of thecompany for that period. In preparing thosefinancial statements the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping properaccounting records which disclose, with

reasonable accuracy at any time, the financialposition of the company and to enable them toensure that the financial statements comply withthe Companies Act 1985. They are alsoresponsible for safeguarding the assets of thecompany and hence for taking reasonable stepsfor the prevention and detection of fraud andother irregularities.

Auditors

BDO Stoy Hayward have expressed theirwillingness to continue in office and a resolutionto re-appoint them will be proposed at theannual general meeting.

This directors’ report has been prepared in accordancewith the special provisions of Part VII of theCompanies Act 1985 relating to small companies.

On behalf of the board

S FogelDirector Date: 12 June 2003

R. Clarke K. Sieracki I. Marcus A. Martin

E. Luker D. Wright P. McNamara M. Brown

M. Moore N. Ritblat H. Sehmi D. Hutton

W. Roxburgh (resigned 13 June 2002)

S. Fogel (appointed Chairman 13 June 2002)

R. Bould (resigned Chairman 13 June 2002)

A. Keane (appointed 13 June 2002)

P. Freeman (appointed 13 June 2002)

J. Gellatly (appointed 13 June 2002)

F. Morton (appointed 13 June 2002)

A. Pettit (appointed 26 November 2002)

M. Titcomb (appointed 26 November 2002)

I. Womack (appointed 13 June 2002)

Report of the Directors31 March 2003

Table 4: The Directors

21

To the members of Investment Property Forum Limited

We have audited the financial statements ofInvestment Property Forum Limited on pages 22to 24 which have been prepared under theaccounting policies set out on page 24.

Respective responsibilities of directorsand auditors

The directors' responsibilities for preparing theannual report and the financial statements inaccordance with applicable law and UnitedKingdom Accounting Standards are set out in theStatement of Directors' Responsibilities.

Our responsibility is to audit the financialstatements in accordance with relevant legal andregulatory requirements and United KingdomAuditing Standards.

We report to you our opinion as to whether thefinancial statements give a true and fair view andare properly prepared in accordance with theCompanies Act 1985. We also report to you if, inour opinion, the Directors' Report is notconsistent with the financial statements, if thecompany has not kept proper accounting records,if we have not received all the information andexplanations we require for our audit, or ifinformation specified by law regarding directors'remuneration and transactions with the companyis not disclosed.

We read the Directors' Report and consider theimplications for our report if we become awareof any apparent misstatements within it.

Our report has been prepared pursuant to therequirements of the Companies Act 1985 and forno other purpose. No person is entitled to rely onthis report unless such a person is a personentitled to rely upon this report by virtue of andfor the purpose of the Companies Act 1985 orhas been expressly authorised to do so by our

prior written consent. Save as above, we do notaccept responsibility for this report to any otherperson or for any other purpose and were herebyexpressly disclaim any and all such liability.

Basis of opinion

We conducted our audit in accordance withUnited Kingdom Auditing Standards issued bythe Auditing Practices Board. An audit includesexamination, on a test basis, of evidence relevantto the amounts and disclosures in the financialstatements. It also includes an assessment of thesignificant estimates and judgements made bythe directors in the preparation of the financialstatements, and of whether the accountingpolicies are appropriate to the company'scircumstances, consistently applied andadequately disclosed.

We planned and performed our audit so as toobtain all the information and explanationswhich we considered necessary in order toprovide us with sufficient evidence to givereasonable assurance that the financialstatements are free from material misstatement,whether caused by fraud or other irregularity orerror. In forming our opinion we also evaluatedthe overall adequacy of the presentation ofinformation in the financial statements.

Opinion

In our opinion the financial statements give a trueand fair view of the state of the company's affairsas at 31 March 2003 and of its result for the yearthen ended and have been properly prepared inaccordance with the Companies Act 1985.

BDO Stoy HaywardChartered Accountants and Registered Auditors,Epsom Date: 12 June 2003

Report of the Auditors

22

Unrestricted Restricted Total Funds Total FundsFunds Funds 2003 2002

Note £ £ £ £

Income

Subscriptions 148,107 – 148,107 122,065

Bank interest receivable 10,451 1,988 12,439 13,657

Surplus from annual dinner and lunch 72,875 – 72,875 54,269

Education income 80,102 – 80,102 93,320

Research and sponsorship 16,145 – 16,145 15,000

Other income 6,527 – 6,527 –

Advanced Education Programme 10,796 – 10,796 5,895

345,003 1,988 346,991 304,206

Expenditure

Education costs 13,915 – 13,915 41,964

Research consultant 30,180 – 30,180 –

Postage, printing and sundries 29,020 – 29,020 22,025

Administration charges 227,798 – 227,798 178,759

Professional and audit fees 13,704 – 13,704 11,248

Bank charges 1,053 – 1,053 761

Bad debts – – – 555

Insurance 429 – 429 285

Irrecoverable VAT 18,959 – 18,959 28,535

335,058 – 335,058 284,132

Surplus of income over expenditure 9,945 1,988 11,933 20,074

Taxation 4 499 96 595 1,812

Retained surplus for Year 9,446 1,892 11,338 18,262

Retained surplus brought forward 204,050 60,103 264,153 245,891

Surplus carried forward 213,496 61,995 275,491 264,153

Income & Expenditure Account Year ended 31 March 2003

The notes on page 24 form part of these Financial Statements.

23

Balance Sheet31 March 2003

2003 2002

Note £ £

Current Assets

Debtors 5 28,668 8,299

Cash at bank and in hand 315,265 347,285

343,933 355,584

Creditors: amounts falling due within one year 6 68,442 91,431

275,491 264,153

Reserves

Unrestricted funds 213,496 204,050

Restricted funds 7 61,995 60,103

275,491 264,153

These financial statements have been prepared inaccordance with the special provisions of Part VIIof the Companies Act 1985 relating to smallcompanies.

These financial statements were approved by theboard and signed on its behalf by:

S FogelDirector Date of approval: 12 June 2003

5 Debtors

Amounts receivable within one year:

6 Creditors

Amounts falling due within one year:

7 Restricted Funds

The Securitisation Fund was established in 1999following a donation from the BarkshireCommittee. Funds held can only be used forfinancing securitisation initiatives and writtenapproval of the Barkshire Committee is requiredbefore expenditure is made.

24

2003 2002£ £

Debtors and prepayments 19,412 8,299

VAT recoverable 9,256 –

28,668 8,299

1 Accounting Policies

Basis of accountingThe financial statements are prepared under thehistorical cost convention.

Fund accountingThe Unrestricted Fund represents funds for use atthe company’s discretion. Restricted Fundscomprise funds with external restrictions.Movements on the fund balances are shown innote 6 to the financial statements.

2 Company Status

The company does not have a share capital andits liabilities are limited to the guarantee of themembers up to a maximum of £1 each. At 31March 2003 there were 1,450 members (2002:1,437 members).

3 Directors Remuneration

The directors, with the exception of the executivedirector, Ms A Keane, do not receive anyremuneration for their services as a director. Theexecutive director’s remuneration details are asfollows:

4 Taxation

The company is liable to corporation tax on the interest it receives and this represents aprovision at 4.8%.

Notes on the Financial Statements31 March 2003

2003 2002£ £

Emoluments 38,473 –

Payments to defined contribution pension scheme 2,897 –

41,370 –

2003 2002£ £

Deferred income 34,825 54,974

Corporation tax 600 1,825

VAT payable – 8,039

Accruals 33,017 26,593

68,442 91,431

Balance Income Expenditure Balance2002 2003

£ £ £ £

Securitisation Fund 60,103 1,988 383 61,708

IPF I n v e s t m e n tProperty Forum

3 Cadogan Gate London SW1X 0AStel 020 7334 3799 fax 020 7334 3872email [email protected] web www.ipf.org.uk

Documents

Annual Review Report & Accounts 2003