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
New research has revealed which fund manager is the most recommended by financial advisers to their clients, as well as the most preferred research houses.
The departure of BlackRock’s head of global client business Mark Wiedman after his 21-year tenure has prompted a reshuffle, with several senior executives receiving promotions.
The volume that financial advisers have invested in private credit funds could be among disclosures that providers have to make to ASIC amid a regulatory crackdown on private markets.
Platinum Asset Management has appointed Northern Trust to provide asset servicing solutions for their $11 billion Australian funds.
