Thursday 31st March 2011 |
Text too small? |
The valuations of the Northland Shopping Centre and the PricewaterhouseCoopers Centre in Christchurch have been slashed by their owner Kiwi Income Property Trust after the magnitude 6.3 earthquake in February.
The value of Northlands Shopping Centre has been reduced by $31.3 million, or 13.1%, to $207 million, while the value of the PricewaterhouseCoopers Centre in the central business district, has reduced by $20.8 million, or 39.4%, to $32 million.
The value of the shopping centre was cut even though 95% of retailers were open for business within two weeks and the centre is now experiencing higher patronage due to earthquake damage to competing retail centres.
"However, with medium to longer-term uncertainty around the city's recovery, future spending patterns and rental growth, the capitalisation rate has been softened by 100 basis points to 8.5%," the trust said.
The value of the PricewaterhouseCoopers Centre reflected access and services to the CBD, the programme and extent of remediation works, the status of current leases and future tenant demand.
"Access to the property has been restricted, due to its location within the central city cordon and, as a result, it has not been possible to complete a full structural assessment," the trust said.
The building represents only 1.6% of the overall portfolio value and is fully insured.
Kiwi Income Property Trust cut the value of its whole portfolio by 4% to $1.98 billion.
"The reduction in portfolio value over the past year is largely attributable to the impact of the February 2011 earthquake on our two Christchurch assets," Sean Wareing, chairman of the manager of the trust said.
NZPA
TGG - Response to media speculation
ARB - Annual Meeting Date and Director Nominations
CNU - Q4 FY25 Connections Update
MOVE FY25 Results and Investor Briefing 29 August 2025
RYM - First quarter trading update
July 11th Morning Report
IKE Announces equity raising of A$20 million
Chorus full year results date
FPH 2025 Notice of Annual Meeting and Voting Form
July 10th Morning Report