Aspen Group property values dip

Aspen Group managing director Angelo Del Borrello says the latest review of its property values is evidence the developer its emerging from the bottom of the valuation cycle, as it today shaved $900,000 off its investment portfolio.

The property developer today said the review has resulted in a pre-tax downward adjustment of 0.2 per cent or $0.9 million to the investment property portfolio.

Aspen said the result was supported by the December 2009 independent valuations on 78 per cent of the investment property portfolio by value.

Investment properties that were not independently valued in December were last valued independently in August. The latest independent valuations reflect a portfolio weighted average capitalisation rate of 9.40 per cent, excluding the Aspen Karratha Village.

Aspen said the results are subject to the finalisation of the half year audit and no material change is expected through the half year review process to the current net tangible asset of 71 cents per security.

"The result of this latest review is evidence that the Group is emerging from the bottom of the valuation cycle," managing director Angelo Del Borrello said,

"At current prices, APZ securities represent significant value for investors given they are trading at a 35 per cent discount to the Group's net tangible asset backing."

The group's half year results are due for release later this month.