Orchard's downward revaluations
Agribusiness fund manager Orchard Investments has announced a downward revaluation of its investment properties.
In announcements released on the Australian Securities Exchange today, Orchard referred to revaluations of its Timbercorp Primary Infrastructure Fund and its Timbercorp Orchard Trust.
Referring to the Timbercorp Primary Infrastructure Fund, the company said independent valuers had recommended an increase in the discount rates used in the calculations and that the directors valuations now indicated that the total of the fund’s properties comprising investment properties and agricultural assets at fair value and water licences at cost were expected to reduce by $10.130 million to $193.80 million, which represented a 4.97 per cent decrease in the carrying value of properties.
It said the half impact of the property write-downs would result in an accounting loss of $7.92 million for the half-year.
Dealing with the Timbercorp Orchard Trust, the company said director’s valuations indicated that the total of the trust’s properties, comprising investment properties and agricultural assets at fair value and water licences at cost, was expected to reduce by $7.611 million to $89.425 million, which represented a 7.9 per cent decrease in the carrying value of the properties.
AUTHOR
Mike Taylor
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