THE Babcock & Brown Japan Property Trust has revalued seven office properties, realising a ¥1.7 billion ($A16.5 million) gain.
The total value of BJT’s portfolio at June 30 2007 has increased by 1.5% from ¥118.9 billion to ¥120.6 billion ($A1.1 billion) and BJT’s estimated gearing ratio reduces from 51.9% to 51.1%.
BJT’s managing director Eric Lucas said the increase in value of the seven properties is primarily due to increases in passing and market rents.
“These property revaluations demonstrate the steady strengthening in the portfolio… The strong upward revaluation of Kokusai Nihombashi, our third largest office property, by over 11%, directly relates to the success of rental negotiations held recently with the sole tenant. These negotiations resulted in an 8% increase in the rent payable by that tenant, with 4% already effective and a further 4% effective in April 2008.”
“BJT’s gearing level still remains below that upon listing over two years ago, despite achieving significant growth in distributions per unit in each six month period and growing the portfolio by over 150% through a combination of debt and equity funding,” Lucas concluded.
Australian Property Journal
