PropertyLink reveals Valuation gains
Propertylink announced this week the outcome of the independent valuations they commissioned in response to the non-binding, indicative and conditional proposal from ESR Real Estate (Australia).
Independent valuations were completed for 29 of the 31 properties in the wholly owned industrial portfolio as at 30 September 2018. The independent valuations have resulted in a net increase of $30.9 million or approximately 3.9% on book value at 30 September 2018. The portfolio weighted average capitalisation rate has reduced by 17 bps to 6.49%.
Across the investment management platform, 25 of the 28 properties were independently valued as at 30 September 20185. The independent valuations have resulted in an increase in the carrying value of Propertylink’s co-investment in external funds of $8.6 million
As a result of the valuations, Propertylinks net tangible assets increase by 6.6 cents per security.
The Directors continue to intend to unanimously recommend that Propertylink securityholders accept a takeover bid from ESR at the Proposal price of $1.206 per security, provided an Independent Expert supports the proposal and in the absence of an alternative offer.
Details of the valuations are below;