Listed property vehicle National Property Trust has announced the latest independent valuation of its properties has shaved another $1.2 million of its portfolio value.The trust's 10-property strong portfolio was valued at $189 million as at September 30
Listed property vehicle National Property Trust has announced the latest independent valuation of its properties has shaved another $1.2 million of its portfolio value.
The trust’s 10-property strong portfolio was valued at $189 million as at September 30 by independent valuers, down from $266.7 million in March last year.
However, the values of its properties have stabilised significantly, with a drop of only 0.6% in the six months to September.
Buildings on National Property Trust’s books include the AA Centre office tower in Auckland, the Eastgate Shopping Centre in Christchurch and Ocean Boulevard retail centre at Napier.
National Property Trust general manager John Crone said the lower valuations were mostly because of market rents dropping in the office market in both Auckland and Wellington, where it has commercial buildings.
“We expect this sector to remain challenging for the next couple of years,” Mr Crone said.
“Also recent leasing successes have seen an increase in the value of our Sel Peacock property in Auckland and Eastgate Shopping Mall in Christchurch. Notwithstanding the recent success, the market environment remains challenging and we anticipate vacancy level will continue to rise.”
A subsidiary of St Laurence which went into receivership in April, National Property Trust will undergo a restructure early next year if shareholders support a written proposal in November.
At press time its shares were down 1.85% to 53c each. It reported a $13.23 million loss for the year to March.
