Macquarie property revaluation results in 10 per cent decline
Amid continuing industry debate over the impact of revaluing direct property investments, Macquarie Office Trust has undertaken an independent revaluation of its entire portfolio of 42 properties, which has resulted in a decrease in value of 10.5 per cent. Macquarie said this meant that the value of the portfolio had declined from $6.5 billion as at June 30, last year, to just $5.9 billion.
It said this movement reflected a softening in capitalisation rates of 78 basis points to 6.95 per cent.
Commenting on the revaluation, Macquarie Office Trust chief executive Adrian Taylor said that given the changes in the economic and real estate landscape over the past six months, the company believed it prudent to conduct an independent revaluation of all properties in the portfolio.
He said the lower valuation had been driven by a range of factors including a downturn in economic activity and a tightening credit market, which had weakened investment demand for property globally.
Taylor said there had also been more conservative assumptions adopted by valuers, which were particularly evident on properties with vacancies and upcoming expiries.
Recommended for you
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
