Listed property sector 'starved for cash'

The $6.5 billion listed property sector could need to raise $415 million cash or sell property worth $615 million, according to a Macquarie report.

Falling property values, weaker capitalisation rates and the need to adhere to debt-to-equity ratios and banking covenants meant the sector was starved for cash.

Macquarie Private Wealth issued a 39-page report sub-headed "Cap in hand", showing how trust managers might need to take fast action to redress a number of problems with the sector which owns properties with a book value of $6.5 billion.

Kiwi Income Property Trust's $50 million placement and AMP NZ Office Trust's $201 million rights issue are evidence of the sector's need for money and the report tipped more action soon.

To read the full NZ Herald article click here

Posted: 13 May 2009

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