MIRVAC REIT valuation gain

MIRVAC Real Estate Investment Trust's latest revaluation has resulted in a gain of $68.0 million or 7.5% on previous book value.

The revaluations on 18 of its direct property assets and seven Travelodge hotels, represent just over 79% of the MREIT’s portfolio.

As a result, the trust’s NTA increased from $1.28 per unit at December 31 2006 to $1.37 at June 30 2007.

MREIT’s director Andrew Butler said the excellent performance to the trust’s retail assets was boosted by firming yields in the sector with the total of the retail properties revalued increasing by 10%.

Butler also pointed out the property at 340 Adelaide Street which recorded a significant increase of 33%, driven by the continuing strong fundamentals of the Brisbane CBD market.

“The hotel sector continues to perform well with higher occupancy rates and average room rate growth. This contributed to the performance of the Travelodge portfolio which increased in value by 11.9%,” Butler said.

Australian Property Journal