Three Allco Reit Properties Gain $121m In Value

Source : The Business Times, January 18, 2008

ALLCO Commercial Real Estate Investment Trust (Allco Reit) said yesterday that the combined value of three of its property assets has jumped by $120.8 million or 12 per cent since the end of June last year, based on the latest revaluation.

The three properties are China Square Central and 55 Market Street in Singapore, and Central Park in Perth. Allco Reit owns the first two properties, and has a 50 per cent stake in the third.

This means that the total value of the trust's stakes in the three properties rose 36.8 per cent or $302.8 million over the full year in 2007. Their combined value at the end of December was $1.13 billion.

The Singapore properties were valued by Savills and the Perth property was valued by CB Richard Ellis.

'The most significant increases in this latest round of asset valuations were seen at China Square Central and 55 Market Street in Singapore,' said Nicholas McGrath, chief executive of Allco Reit. 'These assets increased in value by 17 per cent and 14 per cent respectively in only six months.'

China Square Central, 55 Market Street and Central Park have all achieved significant growth in value since end-June 2007, adding to earlier increases of 15 per cent, 43 per cent and 26 per cent respectively in the first six months of last year.

'The continued improvements to Allco Reit's underlying asset values are a direct reflection of (the trust's) asset management strategy, combined with underlying market rental growth across the Singapore and Perth commercial property markets,' Mr McGrath said.

Allco Reit's share price closed 1.5 cents lower at 80.5 cents yesterday. The trust's share price has fallen 10.1 per cent since the start of the year.