CFS Property fund suffers 11.9 valuation decline
Colonial First State Property has had assets within its Commonwealth Property Office Fund independently revalued, resulting in an 11.9 per cent or $168.5 million decline in prior book value.
The company told the Australian Securities Exchange today that as a result of these revaluations, it was estimated that the fund’s net tangible asset backing per unit had declined from $1.32 per unit at January 22 to $1.24 per unit at March 31.
The announcement of the revaluation was contained in an update on the fund, with Commonwealth Property Fund manager Charles Moore saying market fundamentals were continuing to deteriorate, reinforcing the importance of a strategy of maintaining a strong financial position and continuing a focus on tenant retention.
Moore said the fund expected demand for office space to remain weak over the course of the year, but the fund remained well positioned, with a strong balance sheet and a transparent income stream.
Head of property Darren Steinberg said the Australian office market continues to face significant headwinds over the course of the 2009 calendar year and he expects to see further pressure on revaluations across the board.
AUTHOR
Mike Taylor
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