Australian Unity Office Fund announced that all nine assets in the portfolio are in the final stages of being externally valued as at 31 December 2020.
Combined, the nine preliminary independent valuations:
- will result in an increase of approximately $4.7 million, or an approximate 0.7% increase, over the preceding book value immediately prior to the valuation of those properties;
- reflect a weighted average tightening in capitalisation rates of 3 bps since the last independent valuations in June 2020 or August 2020, bringing the portfolio’s preliminary weighted average capitalisation rate to 6.03%; and
- will increase AOF’s net tangible asset backing by approximately 3 cents per unit.
James Freeman, AOF’s Fund Manager said: “It is pleasing to see the AOF portfolio value increase over the first half of FY21. In particular, AOF has benefited from its exposure to the strongly performing markets of Parramatta and Macquarie Park.
In addition, the valuation of AOF’s asset at 2 Valentine Avenue Parramatta increased, reflecting the in-place development approval for a ~28,000 sqm commercial office tower, and further progress on the early works to reduce program risk.”