Macquarie property revaluation results in 10 per cent decline

property/macquarie/cent/chief-executive/real-estate/

9 February 2009
| By By Mike Taylor |

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 days 6 hours ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

4 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

1 week ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND