CHPT asset experiences ground rent reduction
13/04/2006 - PDF Version Available
Charter Hall Property Trust (CHPT) announces that pursuant to the sale agreement for 56 Anzac Street, Chullora and as outlined in the PDS, the vendor has been successful in its appeal of the Valuer General's valuation such that the unimproved land value of the property has been reduced from $24.8 to $21.0 million.
As a result, the land rent payable by CHPT from 1 September 2005 has been reduced by $361,000 per annum, which means the net income generated from the property increases by $361,000 per annum from that date. In accordance with the Contract For Sale, CHPT has paid an additional sum of $3.61 million to the vendor based upon the increased net income generating a 10% yield on the additional payment.
Independent valuation advice provided by Savills as at 1 June 2005 anticipated the land value appeal and supports an uplift of up to $18 million pending the outcome of the appeal process. Accordingly CHPT will adopt a revised book value of $17.61 million.