This article is from the Australian Property Journal archive
MIRVAC Group has reported a 3% fall in the value of its real estate portfolio within its investment division.
However, Mirvac managing director Nick Collishaw said the falls were inline with expectations and are further evidence that the devaluation cycle for Australian investment grade assets is close to or has bottomed.
In the six months to December 31 2009, the investment division recorded a decline of $124.6 million. Mirvac’s total portfolio weighted average capitalisation rate has increased by 24 basis points to 7.79%.
As at December 2009, the division’s portfolio was valued at $4.09 billion.
In accordance with the revised Australian Accounting Standards Board financial reporting, which requires investment properties under construction to be carried at fair value, previously carried at cost, Mirvac has booked a reduction in carrying value of $86.3 million.
Collishaw said Mirvac will announce its half year result on February 16.
Australian Property Journal
