Aventus have announced a revaluation of their portfolio as at the 31st December 2017 revealing an increase of $53M.
The value of the AVN Portfolio increased to $1.905 billion for the period ending December 2017. Capital expenditure ($21M) and the acquisitions ($436M) of Sydney centres at Castle Hill and Marsden Park that settled in July 2017 also contributed to the portfolio’s growth.
Eight of the valuations undertaken were independent valuations and fourteen were completed internally and have been adopted as Directors’ valuations. The properties independently valued for the half contributed approximately $44m of the $74m gross valuation increase, showing a circa 7% increase over the six months since 30 June 2017.
The weighted average capitalisation rate for the portfolio has tightened by 20bps to 6.72% at 31 December 2017 compared to 6.85% at 30 June 2017. Aventus Property Group
CEO Darren Holland commented, “The portfolio value increase reflects annual rent increases, market rent increases and the completion of value-adding developments that are accretive to both the amenity and value of our Centres. Over the past six months we have undertaken a number of projects including building our first childcare centre at Cranbourne Home along with a number of tenant remixing opportunities. We continue to see investor demand for well-located large format centres which has contributed to the tightening of capitalisation rates for a number of centres across the portfolio.