Business

Lower values recorded in commercial property sector

06:01 am on 25 September 2008

Kiwi Income Property Trust says a weaker commercial property sector has seen a fall in the value of its assets.

The total value of the commercial landlord's property portfolio fell by $51 million in the past six months, to just over $2 billion.

The Vero Centre in Auckland lost $7 million in value to $328 million.

The trust re-values its properties annually, but decided to conduct a six-monthly revaluation due to the market's downturn.

It says the decrease in the trust's total property value won't change its payment to investors.

Kiwi Income Property Trust also owns the Sylvia Park mall, which increased $8 million in value, to $479 million due to stronger than expected rental growth over the past six months.