Australia's Centuria Office REIT posts decline in valuation for 70% of portfolio

Centuria Office REIT

03/07/2023 01:50

July 3 (Reuters) - Australia's Centuria Office REIT
 COF.AX  said on Monday that external valuations on about 13 of
its 23 investment properties as at end of June reflected a
like-for-like decrease of about A$102 million ($67.96 million)
on prior book values, a portfolio decline of about 4.4%. 
    Commercial real estate prices have become a major concern
for investors, as markets are pricing in impacts from an already
slowing economy and simultaneous growth of remote working.
    Last month, Australia's largest office landlord Dexus
 DXS.AX  said the value of its office portfolio had declined
7.7% compared to its previous book value. 
    Centuria Office recently signed a deal to divest its 54
Marcus Clarke Street property in Canberra, Australian Capital
Territory, for a sale price of A$23.0 million.
    The office real estate investment trust, which had acquired
the property in 2015 for A$14.2 million, had said that the
proceeds from the sale would be used to repay debt.

($1 = 1.5008 Australian dollars)

 (Reporting by Jaskiran Singh in Bengaluru; Editing by Rashmi
Aich)
 ((Jaskiran.Singh@thomsonreuters.com;))