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REGISTERED NUMBER: 00222618 (England and Wales)
















Financial Statements for the Year Ended 30 September 2023

for

Real Estate And Property Investment
Company, Limited

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)






Contents of the Financial Statements
for the Year Ended 30 September 2023




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


Real Estate And Property Investment
Company, Limited

Company Information
for the Year Ended 30 September 2023







DIRECTORS: M C E Evans
A R E Clifford
N V Guttridge
M J Johnston



SECRETARY: M J Johnston



REGISTERED OFFICE: Ashdene House
107 Lavender Sweep
London
SW11 1EA



REGISTERED NUMBER: 00222618 (England and Wales)



AUDITORS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN



PROPERTY CONSULTANTS: Van De Berg Management Ltd
30a Green Lane
Northwood
Middlesex
HA6 2QB

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Statement of Financial Position
30 September 2023

30.9.23 30.9.22
Notes £    £    £    £   
FIXED ASSETS
Investments 4 66,216 56,604
Investment property 5 1,809,197 1,797,610
1,875,413 1,854,214

CURRENT ASSETS
Debtors 6 60,017 38,965
Cash at bank 297,825 337,529
357,842 376,494
CREDITORS
Amounts falling due within one year 7 83,581 71,085
NET CURRENT ASSETS 274,261 305,409
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,149,674

2,159,623

PROVISIONS FOR LIABILITIES 9 100,910 95,611
NET ASSETS 2,048,764 2,064,012

CAPITAL AND RESERVES
Called up share capital 10 150,000 150,000
Revaluation reserve 11 961,383 945,483
Capital reserve 11 705,218 705,218
Retained earnings 11 232,163 263,311
SHAREHOLDERS' FUNDS 2,048,764 2,064,012

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2024 and were signed on its behalf by:





M J Johnston - Director


Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements
for the Year Ended 30 September 2023

1. STATUTORY INFORMATION

Real Estate And Property Investment Company, Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the carrying amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year is addressed below.

Valuation of investment properties:

The valuation of the investment properties is on the basis of a valuation carried out by the directors of the company. The valuation was made on an open market basis by reference to market evidence of transaction prices of similar properties.

Rental income
Rental income under operating leases is charged to the profit and loss account on a straight-line basis over the period of the lease.

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

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

Basic financial assets
Basic financial assets, which include debtors, 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.

Basic financial liabilities
Basic financial liabilities, including creditors and loans 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.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. Provision is made for potential tax due on the revalued amount of the freehold property.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Investment property
The Companies Act 2006 requires all properties to be depreciated. However, this requirement conflicts with the generally accepted accounting principle set out in FRS 102 1A. The directors consider that, as these properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view, and that it is necessary to adopt the investment policy under FRS 102 1A in order to give a true and fair view as follows:

Properties are initially recognised at cost, and subsequently revalued to fair value at each reporting date through the income statement.

If this departure from the Act had not been made, the profit for the financial year would have been decreased by depreciation. However, the amount of depreciation cannot be reasonably quantified because depreciation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Capital reserve
Although the company does not fulfil all the criteria to be classified as an investment company, under the provisions of the Articles of Association certain profits rising from the disposal of properties are not available for distribution as dividend and are to be treated as non distributable within the capital reserve. Accordingly the directors are of opinion that this treatment of profits and losses on certain property disposals is appropriate to the company's circumstance and is necessary in order to present a true and fair view.

Equity instruments
The called up share capital is recognised at the value of cash receivable on being fully paid. Dividends are paid to the shareholders at the discretion of the directors.

Fixed asset investments
The fixed asset investments are included at fair value and revalued through the profit and loss.

Revaluation reserve movement
The movement in the revaluation reserve shown on the Statement of Changes in Equity is due to the transfer of the investment property and fixed asset investment revaluations and the associated deferred tax movement from distributable retained earnings to the non-distributable revaluation reserve.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2022 - 4 ) .

4. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST OR VALUATION
At 1 October 2022 56,604
Revaluations 9,612
At 30 September 2023 66,216
NET BOOK VALUE
At 30 September 2023 66,216
At 30 September 2022 56,604

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

4. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 30 September 2023 is represented by:

Unlisted
investments
£   
Valuation in 2015 44,462
Valuation in 2020 11,748
Valuation in 2023 9,612
Cost 394
66,216

5. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 October 2022 1,797,610
Revaluations 11,587
At 30 September 2023 1,809,197
NET BOOK VALUE
At 30 September 2023 1,809,197
At 30 September 2022 1,797,610

The value of the investment properties is based on the estimated open market value. The valuation was made on 30 September 2023 and has been performed by the directors of the Company who have significant knowledge of property markets. A deferred tax liability on the revaluation has been recognised in the accounts.

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.23 30.9.22
£    £   
Trade debtors 38,576 37,192
Other debtors - 304
VAT 216 -
Prepayments and accrued income 21,225 1,469
60,017 38,965

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.23 30.9.22
£    £   
Trade creditors 12,505 2,613
Tax 11,256 11,080
VAT - 2,604
Other creditors 1,289 44
Income in advance 25,507 32,681
Accrued expenses 33,024 22,063
83,581 71,085

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

8. LEASING AGREEMENTS
Operating leases represent leases to third parties. The leases are negotiated over terms of between 3 and 20 years and are subject to provisions for rent reviews according to prevailing market conditions.

At the year end date the company had contracted with tenants minimum lease payments relating to non-cancellable operating leases amounting to £794,765 (2022 - £846,326).

9. PROVISIONS FOR LIABILITIES
30.9.23 30.9.22
£    £   
Deferred tax 100,910 95,611

Deferred
tax
£   
Balance at 1 October 2022 95,611
Property revaluation 2,896
Investment revaluation 2,403
Balance at 30 September 2023 100,910

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.9.23 30.9.22
value: £    £   
150,000 Ordinary £1 150,000 150,000

11. RESERVES
Retained Revaluation Capital
earnings reserve reserve Totals
£    £    £    £   

At 1 October 2022 263,311 945,483 705,218 1,914,012
Profit for the year 67,252 67,252
Dividends (82,500 ) (82,500 )
Transfer to non distributable
reserve

(15,900

)

15,900

-

-

At 30 September 2023 232,163 961,383 705,218 1,898,764

The Revaluation reserve is made up of those retained earnings not available for distribution to shareholders.

The capital reserve is made up of the accumulated profits on disposal of properties.

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Denise Lindsell FCA (Senior Statutory Auditor)
for and on behalf of Hardcastle Burton LLP

Real Estate And Property Investment
Company, Limited (Registered number: 00222618)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

13. OFF-BALANCE SHEET ARRANGEMENTS

Of the investment properties included in the accounts at a valuation of £1,809,197 (2022 - £1,797,610), £984,642 (2022 - £1,053,999) are held by way of long leaseholds. The risks and rewards of the long leaseholds are all with the company.

The investment properties held by the company including those held by way of long leaseholds are all leased to tenants under operating leases.

14. RELATED PARTY DISCLOSURES

During the year, total dividends of £5,709 (2022: £4,829) were paid to the directors.

15. ULTIMATE CONTROLLING PARTY

There is no overall controlling party.