Australand’s investment property value to drop by A$235m

Mainboard-listed Australand says it expects the value of its investment property portfolio to drop by 235 million Aussie dollars for the six-month period ended June.

This is about 10 per cent lower compared to what the portfolio was worth at the end of last year.

The company, which is also listed in Australia, says it has also undertaken a review of its residential, commercial and industrial development inventory.

As a result of further deterioration in the middle to high-end residential property market and the deferment of a number of projects, the firm expects an impairment of 76 million Aussie dollars on its residential inventories.

Meanwhile, commercial and industrial development inventory will take a charge of around 58 million Aussie dollars.

The company says this is mainly due to softening in capitalisation rates and deferment of projects.

Australand will release its first half financial results next Monday.

Source : Channel NewsAsia – 20 Jul 2009

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