Thursday, November 20, 2008

Marginal Fall In Value Of 5 MI-Reit Properties Here

Source : The Business Times, November 20, 2008

Its only warehouse property in Japan revalued upwards by 13.4%

MACARTHURCOOK Industrial Reit (MI-Reit) has seen the valuations of five Singapore properties fall 1.3 per cent to $141.6 million from $143.4 million a year ago.

The properties are at Joo Seng Rd, Gul Way, Changi South Lane, Changi South Avenue and Tuas Avenue 20.

In a statement yesterday, MI-Reit said it recently obtained new independent valuations for eight properties - seven in Singapore and one in Japan.

The other two Singapore properties - at Tuas Avenue 2 and Admiralty Rd - in this revaluation exercise were unchanged in value at $23 million and $14.8 million respectively.

The Japanese property - Asahi Ohmiya Warehouse in Japan - was revalued 13.4 per cent higher at $33.1 million, up from $29.2 million a year ago.

MI-Reit has 21 properties - 20 in Singapore and one in Japan.

It said the valuation exercise increased its portfolio value to $559.9 million as at Nov 15. A year ago, when it had 13 income-producing properties, the portfolio was valued at $370.8 million.

In September, MI-Reit said it had obtained valuations for seven other Singapore properties. None of these had fallen in value, though four were unchanged. Collectively, the seven properties had a total value of $227.6 million at Sept 1, up from $226.3 million a year earlier. This was a 0.6 per cent increase.

According to a report by Colliers International, average capital values of prime freehold factory space and warehouse space in Q3 2008 remained largely unchanged.

Colliers estimated prime freehold factory space to have remained at $548 per sq ft (psf) and $437 psf for ground and upper-floor space respectively. Prime freehold ground and upper-floor warehouse space was estimated at $521 psf and $392 psf respectively.

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