This article is from the Australian Property Journal archive
MACQUARIE CountryWide Trust has successfully revalued its entire portfolio and achieved a $101 million gain or 2.3% over book value for the six month period to June 30 2007.
The trust’s entire Australian, New Zealand and United States were revalued, on 226 of the 245 property assets within the portfolio, excluding 19 properties under redevelopment.
Of the 226, 103 were independent revaluations completed in June 2007 and the total gain for the full year is $A211 million, representing a 4.2% increase.
As a result, MCW expects a 7.7 cents per unit increase in net tangible assets.
MCW’s chief executive Steven Sewell said the valuation uplift results from a combination of above average same store net operating income growth, further marginal cap rate compression and leasing success increasing occupancy rates across the board – all experienced across the Australian and US properties.
“In the US, we continue to see some compression in the average cap rate across the majority of the Trust’s properties located in prime markets of California, Washington DC, Baltimore and Maryland.
“On average, the valuation results across the trust’s US portfolio demonstrate the inherent quality of the assets and continued strong investment demand for convenience-based retail real estate. In addition, our JV partner Regency Centers has been able to deliver above industry average same store NOI growth and increasing overall occupancy for the portfolio, supporting strong valuation fundamentals,” Sewell said.
In the Australian portfolio, the valuation uplift is largely driven by the flow on benefits of the trust’s numerous redevelopment projects completed in recent years and continued strong specialty tenant re-leasing activities, delivering $A49 million or a 4.7% increase in portfolio value.
Australian Property Journal
