Another property group downgraded
Property and funds manager Cromwell Group has seen a decrease of more than $49 million on half of its property portfolio values in the six months from June 2008, joining a number of property managers that have had their property portfolios downgraded.
The company saw a net loss to stapled securityholders of almost $70 million, the result of revaluations, mark-to-market of interest rate hedges and write-downs of listed property investments. Its net tangible assets per security has fallen to 86 cents.
Cromwell has completed revaluations on 15 of its 25 property assets.
The group is likely to sell down 50 per cent of its Tuggeranong Office Park property, as part of a plan to launch fixed term property syndicates to lure potential investors.
“The property market is clearly challenging and is expected to remain so in the short term. However, we remain well-cushioned against the current financial crisis,” Cromwell chief executive Paul Weightman said.
Cromwell has generated earnings of $36.4 million from June to December 2008.
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