Macquarie property revaluation results in 10 per cent decline
Amid continuing industry debate over the impact of revaluing direct property investments, Macquarie Office Trust has undertaken an independent revaluation of its entire portfolio of 42 properties, which has resulted in a decrease in value of 10.5 per cent. Macquarie said this meant that the value of the portfolio had declined from $6.5 billion as at June 30, last year, to just $5.9 billion.
It said this movement reflected a softening in capitalisation rates of 78 basis points to 6.95 per cent.
Commenting on the revaluation, Macquarie Office Trust chief executive Adrian Taylor said that given the changes in the economic and real estate landscape over the past six months, the company believed it prudent to conduct an independent revaluation of all properties in the portfolio.
He said the lower valuation had been driven by a range of factors including a downturn in economic activity and a tightening credit market, which had weakened investment demand for property globally.
Taylor said there had also been more conservative assumptions adopted by valuers, which were particularly evident on properties with vacancies and upcoming expiries.
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
