The value of properties in listed company Kermadec's portfolio fell by a collective $4.73 million in the year to March 31.The fund said two tenants vacating suddenly was behind the drop in value, with its portfolio now at $116.68 million.Fund director Chr
The value of properties in listed company Kermadec’s portfolio fell by a collective $4.73 million in the year to March 31.
The fund said two tenants vacating suddenly was behind the drop in value, with its portfolio now at $116.68 million.
Fund director Christopher Francis did point out that two of its properties which have individually titled units in one building were valued on a per-unit basis rather than as a whole, adding that the revaluations have yet to be audited.
“Kermadec Property Fund’s office park at Lambie Drive, Manukau City consists of seven separate unit titles, which were valued on an individual basis at March 31 2010. The Palmerston North property [Coca Cola distribution warehouse] was recently subdivided into three separate fee simple titles, which were also valued individually at 31 March 2010,” Mr Francis said.
The fund is looking at divesting these two properties to “focus” on the Auckland CBD market.
The downward revaluation means Kermadec’s net tangible assets will reduce from $0.84 a share to $0.78 a share.
Kermadec’s property portfolio consists of eight properties, including the cinema and retail Berkeley complex at Takapuna and Auckland CBD building Brookfields House. The weighted average lease expiry is 5.4 years.
Kermadec Property Fund’s full year financial results will be published next month.
