This article is from the Australian Property Journal archive
THE 360 Capital Industrial Fund has valued 11 property assets, representing 70% of the portfolio by value, resulting in a $17.5 million or 5.5% increase on the April 2014 valuations.
The fund’s overall weighted average capitalisation rate has firmed 24bp since April 2014 to 8.22%.
Fund manager Ben Butler said recent strong transactional evidence, particularly from properties exhibiting long leases, has been reflected in significant firming of cap rates.
Notable movements include:
– 2 Woolworths Way, Warnervale NSW – a 25bp firming of cap rates since the acquisition in July 2014 resulted in a 3.1% or $2.20 million valuation increase.
– 12 Dansu Court, Hallam VIC – a 25bp firming of cap rates post a new lease to DKSH and an increase in the market rent has resulted in a 10.1% or $1.20 million valuation increase.
– 37-51 Scrivener St Warwick Farm NSW – increased in value by 8.1% or $1.75 million by virtue of a 25bp firming of the market cap rate and increase in market rental.
– 457 Waterloo RD Chullora NSW – increased in value by $1.60 million or 7.9% by virtue of a 50bp firming of cap rate reflecting the asset’s long 13 year WALE.
– And 22 Hawkins Crescent, Bundamba QLD – a 25bp firming of cap rates and an increase in market rent has resulted in a $2.8 million or 7.7% increase in value.
The results translate into pro-forma NTA per unit increasing to $2.28, an uplift of $0.14 per unit on the current NTA per unit of $2.14.
As a result, gearing has now reduced to 40.6%.
Australian Property Journal
