Retail landlord Vicinity Centres has had 37 of its 74 directly-owned retail properties independently valued (65.5 per cent by value), with the remaining properties subject to an internal valuation, resulting in a net valuation growth for the overall portfolio of $147 million.

Combined with a valuation growth for the first half of FY18, the company has seen a total net valuation growth of $555 million, or 3.6 per cent, of its directly-owned portfolio in the 12 months to 30 June 2018.

“It is pleasing to report further portfolio valuation growth in the June half, driven by ongoing quality enhancement initiatives, our intensive asset management approach and continued strong demand for quality shopping centres,” said Grant Kelly, Vicinity CEO and managing director.

“Significant increases in value have been achieved for the City Centre portfolio, particularly at Emporium Melbourne (up $40.8 million or 6.3 per cent).”

The company’s three recently acquired assets, Queen Victoria Building, The Galeries and The Strand Arcade, in Sydney increased in value by a total of $17.4 million, or 3 per cent net of stamp duty and transaction costs paid.

DFO valuations are up $36.3 million, or 2.4 per cent, driven by strong income growth, while Mandurah Forum, which completed the final stage of a major redevelopment in March 2018 recorded an increase of 6.3 per cent, or $20 million, in its valuation.

Gearing is estimated to be 26.4 per cent as at 30 June 2018, down from 26.6 per cent at 31 December 2017.

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