Australia’s property group and the ASX-listed company GPT Group announced that it has independently revalued its retail portfolio as at 31 May 2020.
The company said in a statement, the revaluations have resulted in a reduction in value of A$476.7 million, or approximately 8.8 per cent compared to the 31 December 2019 book value.
Commenting on the revaluations, GPT’s Chief Executive Officer Bob Johnston said: “The retail asset revaluations reflect the independent valuers’ assessment of the effects that COVID-19 and the subsequent social restrictions have had on our retail assets. This has generally been reflected in lower market rental growth rates, increased vacancy and abatement allowances and some softening in investment metrics.”
”In recent weeks it has been pleasing to see a significant increase in activity at our retail assets as restrictions have been eased. Across our regional shopping centres we now have approximately 90 per cent of stores open and foot traffic has returned to approximately 85 per cent of the level at the same time last year, ” he added.
Separately, all assets owned by GPT Wholesale Office Fund (GWOF) and the GPT Wholesale Shopping Centre Fund (GWSCF) have been independently revalued as at 31 May 2020.
GWOF recorded a negative revaluation of $34 million, representing a decline in book value of 0.4 per cent against the 31 March 2020 book value. GWSCF recorded a negative revaluation of $137.6 million, representing a decline in book value of 3.5 per cent against the 31 March 2020 book value.
GPT’s ownership interest in GWOF is 22.3 per cent, while its ownership interest in GWSCF is 28.5 per cent.
GPT said it would have all Group investment properties independently valued as at 30 June 2020.