Challenger forced to seek independent property valuation
TheChallenger Internationalgroup has been forced by its auditor to seek an independent assessment of the methodology used to determine the value of its property assets.
Challenger said in a statement today the assessment would be used to satisfy requirements set out by auditors before it lodges its annual financial statements for the year ending 30 June, 2002.
The group says it has obtained a one week extension from the Australian Securities and Investments Commission (ASIC) to submit its financial statements.
A spokesperson for ASIC said today the extension would allow Challenger to obtain the independent assessment and disclose to the market that it had sought an independent assessment.
“Given the importance of the valuation of the capital and income units to the financial performance of the group as a whole, ASIC thought that it was important that it was disclosed to the market that Challenger had commissioned an independent valuation as a requirement of the auditor,” an ASIC spokesperson says.
Challenger says an international investment bank will conduct the assessment.
Earlier this month, Challenger reported that its property portfolio was worth in the vicinity of $2.47 billion.
AUTHOR
George Liondis
Recommended for you
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.
A potential acquisition of Platinum Asset Management by Regal Partners will be beneficial for the “challenged” fund manager, believes Morningstar, but it has warned fund management mergers don’t always run smoothly.
Fund managers made a “big shift” into bond-sensitive sectors like utilities in September and away from cyclicals, while risk appetite is at an 11-month low.
Ahead of the RBA’s upcoming monetary policy meeting next week, BlackRock Australasia has reaffirmed the market’s view that rate cuts are likely out of the picture for 2024.
