19/02/2014 - 11:28

Aspen Group forecasts up to $72m loss

19/02/2014 - 11:28

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Property investor and developer Aspen Group says it is likely to post a half-year loss of up to $72 million on the back of impairments on a number of its assets, including the Septimus Roe office tower in central Perth.

Aspen Group forecasts up to $72m loss

Property investor and developer Aspen Group says it is likely to post a half-year loss of up to $72 million on the back of impairments on a number of its assets.

Aspen told the market it would make an estimated $79 million in non-cash carrying value adjustments, mostly in relation to assets that have been sold or are currently for sale.

The company now expects to post a loss of between $68 million and $72 million when it reports its half-year results next week.

It has written down the value of its Septimus Roe office tower on Adelaide Terrace by $12 million, following a new independent valuation which reflected the softening conditions in the CBD office market. 

Aspen put the building on the market in August last year as part of a broader sale campaign of its $311 million commercial property portfolio.

It has also written down the value of its Karratha Village development by $12 million, reflecting a new valuation undertaken after tenant Woodside Petroleum downsized its lease at the facility.

Other adjustments include a $16 million impairment on its Adelaide City Central development site, a $12 million deferred tax asset and an $8 million impairment on non-core development assets.

A further $19 million in value adjustments relates to capital expenditure, tenant incentives and selling costs.

Aspen said the adjustments would have no impact on its debt facilities and it remained compliant with its debt requirements.

Aspen shares were trading 4.7 per cent lower at $1.21 at 11:25am WST.

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