Chief executive Chris Gudgeon said Kiwi Property's portfolio had benefited from a general strengthening in investment market conditions, with capitalisation rates firming to a record low across the portfolio.
New leasing deals and strong sales at its key retail centres assisted value growth. However, the overall gain was moderated by Kiwi's continued proactive approach to earthquake-strengthening, which effectively reduced the gain by about $22 million.
The March property valuations were determined by independent valuers and would be confirmed in the company's audited financial results for the year to March 31, to be announced on May 22, he said.
The value of the retail portfolio increased to $2 billion and its weighted average capitalisation rate firmed to 6.52%.
That represented a net gain, after allowing for capital expenditure and accounting adjustments, of about $8 million.
Sylvia Park, the company's flagship asset, increased in value by $11 million, or 1.5%, to $755 million. On completion of the office and dining lane developments now under way, requiring further expenditure of $75 million in remaining development costs, the value of Sylvia Park was projected to increase to $840 million.
The net gain for the office portfolio was about $22 million, or 2.5%, the portfolio value increased to $879 million and the average capitalisation rate firmed to 6.13%.
Auckland office buildings provided a net value gain of $23 million. Capitalisation rates for both the Vero Centre and ASB North Wharf firmed to 5.75%. The increase of the Vero Centre was assisted by limited vacancy in the prime-grade sector and higher market rents.
In Wellington, Kiwi Property's core government precinct buildings, The Aurora Centre and 44 The Terrace, produced a combined $4 million lift in value, Mr Gudgeon said.
The value of the Majestic Centre increased to $119.4 millon but a net-value loss of $5 million was recorded after providing for capital expenditure on the seismic upgrade programme, which was completed in January.
