The GPT Group has become the first Australian fund manager to write down the value of assets in two of its largest wholesale funds 鈥� by a total of A$694m (鈧�392.8m) 鈥� in response to the adverse impact of COVID-19.
GPT told investors that all properties in the GPT Wholesale Office Fund (GWOF) dropped by 2% or A$183m and the GPT Wholesale Shopping Centre Fund (GWSCF) had 11% or A$515m trimmed from its valuation as at 31 March 2020.
GPT鈥檚 CEO, Bob Johnston, said: 鈥淭he asset revaluations recorded by GWOF and GWSCF reflect the independent valuers鈥� assessment of the effects that COVID-19 and the measures being implemented by Federal and State governments are having on economic activity.鈥�
The reduction in office valuations reflected was driven by lower near-term rental growth assumptions, GPT said.
One of the country鈥檚 largest office funds, GWOF owns 17 assets in capital cities valued at A$8.8bn before the latest revaluation. GPT鈥榮 ownership interest in GWOF is 22.9%.
The GWSCF owns seven large regional shopping malls around Australia. These were valued at A$4.8bn pre-COVID-19. GPT鈥� has a 28.5% stake in GWSCF.
GPT said the decline in book value of GWSCF took into account largely the result of a softening in the assumptions for market rental growth, restricted trading conditions and vacancy downtime with government-imposed lockdowns to combat the pandemic.
The company said all group investment properties would be revalued again independently as at 30 June 2020.
