Limited Liability Partnership registration number OC425742 (England and Wales)
ART-INVEST REAL ESTATE UK LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
ART-INVEST REAL ESTATE UK LLP
CONTENTS
Page
Statement of financial position
1
Reconciliation of members' interests
3 - 4
Notes to the financial statements
5 - 9
ART-INVEST REAL ESTATE UK LLP
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
4
13,206,271
13,206,271
Current assets
Debtors
5
69,743
80,204
Cash at bank and in hand
42,737
44,850
112,480
125,054
Creditors: amounts falling due within one year
6
(13,324,378)
(56,562)
Net current (liabilities)/assets
(13,211,898)
68,492
Total assets less current liabilities and net (liabilities)/assets attributable to members
(5,627)
13,274,763
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
5,123
13,274,763
Other amounts
(10,750)
-
(5,627)
13,274,763
Total members' interests
Amounts due from members
-
(11,181)
Loans and other debts due to members
(5,627)
13,274,763
(5,627)
13,263,582

The notes on pages 5 to 9 form part of these financial statements.

The members of the limited liability partnership have elected not to include a copy of the income statement within the financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 29 September 2023 and are signed on their behalf by:
29 September 2023
A.Cap Investments Limited
Designated member
Limited Liability Partnership Registration No. OC425742
ART-INVEST REAL ESTATE UK LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Members' capital
Other amounts
Total
Total
2022
£
£
£
£
Members' interests at 1 January 2022
-
13,274,763
(11,181)
13,263,582
13,263,582
Profit for the financial year available for discretionary division among members
979,233
-
-
-
979,233
Members' interests after profit for the year
979,233
13,274,763
(11,181)
13,263,582
14,242,815
Allocation of profit for the financial year
(979,233)
-
979,233
979,233
-
Repayment of debt (including members' capital classified as a liability)
-
(13,269,640)
-
(13,269,640)
(13,269,640)
Other movements
-
-
(978,802)
(978,802)
(978,802)
Members' interests at 31 December 2022
-
5,123
(10,750)
(5,627)
(5,627)
ART-INVEST REAL ESTATE UK LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Members' capital
Other amounts
Total
Total
2021
£
£
£
£
Members' interests at 1 January 2021
-
13,274,763
(7,108)
13,267,655
13,267,655
Loss for the financial year available for discretionary division among members
(4,073)
-
-
-
(4,073)
Members' interests after loss for the year
(4,073)
13,274,763
(7,108)
13,267,655
13,263,582
Allocation of loss for the financial year
4,073
-
(4,073)
(4,073)
-
Members' interests at 31 December 2021
-
13,274,763
(11,181)
13,263,582
13,263,582
Amounts due to members
-
Amounts due from members, included in debtors
(11,181)
(11,181)
ART-INVEST REAL ESTATE UK LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The notes on pages 5 to 9 form part of these financial statements.

ART-INVEST REAL ESTATE UK LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
1
Accounting policies
Limited liability partnership information

Art-Invest Real Estate UK LLP is a limited liability partnership incorporated in England and Wales. The registered office is 1 Red Place, London, England, W1K 6PL.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due

to members' and, where such an amount relates to current year profits, they are recognised within ‘Members'

remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are

classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are

presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights,

they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the

recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts

simultaneously, in which case they are presented net.

 

 

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

ART-INVEST REAL ESTATE UK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
1.4
Fixed asset investments

Interests in associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Entities in which the limited liability partnership has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.5
Impairment of fixed assets

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ART-INVEST REAL ESTATE UK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

ART-INVEST REAL ESTATE UK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.8
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
Total
-
0
-
0
4
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
13,206,271
13,206,271
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
65,743
-
Amounts owed by undertakings in which the LLP has a participating interest
4,000
69,023
Amounts owed by members
-
11,181
69,743
80,204
ART-INVEST REAL ESTATE UK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
3,720
-
Amounts owed to group undertakings
52,914
52,962
Amounts owed to undertakings in which the LLP has a participating interest
13,248,534
-
Accruals and deferred income
19,210
3,600
13,324,378
56,562

The members consider that the carrying amount of trade payables approximates to their fair value.

7
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Paul Berlyn FCA
Statutory Auditor:
Gravita II LLP
9
Events after the reporting date

The members are of the opinion that there are no significant adjusting or non-adjusting events occurring after the reporting date.

10
Related party transactions

At the year end the limited liability partnership owed £50,000 (2021 - £50,000) to a fellow group undertaking in relation to an interest fee loan which is fully unsecured and repayable on demand.

 

During the year an additional interest free loan was obtained by the limited liability partnership from related party with participating interest amounting to £13,248,534. The loan is fully unsecured and repayable on demand.

11
Parent company

The immediate parent company of Art-Invest Real Estate UK LLP is Art-Invest Real Estate GmbH & Co. KG and its registered office is Am Kabellager 11-13, 51063 Köln, HRA 27764.

 

The ultimate parent undertaking is Deutsche Immobilien Holding Aktiengesellschaft which is also the smallest and largest group into which the partnership is consolidated. Its registered office is Nordenhamer Str. 180, 27751 Delmenhorst, Germany, from which copies of the its financial statements can be obtained.

2022-12-312022-01-01false29 September 2023CCH SoftwareCCH Accounts Production 2023.200This audit opinion is unqualifiedOC4257422022-01-012022-12-31OC4257422022-12-31OC4257422021-01-012021-12-31OC425742bus:PartnerLLP12022-01-012022-12-31OC425742bus:LimitedLiabilityPartnershipLLP2022-01-012022-12-31OC425742bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-31OC425742bus:FRS1022022-01-012022-12-31OC425742bus:Audited2022-01-012022-12-31OC425742bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP