Vicinity portfolio lost $37m in value in six months
The total valuation across the group’s 62 centres fell to $15.83 billion over the period, a 0.2 per cent decline.
Net valuation declines were seen across regional (2.6 per cent), sub-regional (1.6 per cent) and neighbourhood centres (5.7 per cent), while the group’s “flagship portfolio”, which includes such assets as Chadstone shopping centre, various CBD assets and DFO centres, saw a valuation increase.
“The flagship portfolio increased in value by $169 million or 2.4 per cent in the period, with capitalisation rates firming by 4 basis points reflecting continued income growth and strong investor demand for these assets,” Vicinity Centre’s chief executive and managing director Grant Kelley said.
“Chadstone recorded a gain of $42.4 million or 1.4 per cent, valuing Vicinity’s investment in the asset at $3.15 billion, with a capitalisation rate of 3.75 per cent.”
Additionally, the group’s DFO assets saw valuation gains over the period, driven by strong income growth, with DFO South Wharf up $48.4 million (a 7.4 per cent gain) and DFO Homebush up $34.3 million (a 7.1 per cent gain).
Vicinity’s DFO Perth, launched in October 2018, saw a 40.4 per cent increase on its value equal to $30.7 million following strong sales over its launch period.
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