Write-off in property portfolios
PA Auckland The New Zealand-wide decline in commercial investment property values has led the MFL Mutual Fund to write off $27.1 million this year in the over-all value of its property portfolio. Instead of • revaluing each property only in the year when a rent review is due, the MFL board of directors had all of the fund’s 170 properties revalued. This was to ensure that the financial statements show the portfolio’s current market value. “It was necessary because of the drop in New Zealand commercial property values,” the chairman, Mr J. R. Maddren, said. Directors were concerned that under the traditional practice, properties bought in 1987 would due for review next' year, and although known to have declined in value, would not be brought into account until 1990. The new policy had caused 39 undervalued properties to be written up by $14.9M and 131 properties to be written down by S42M.
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Press, 30 November 1989, Page 31
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155Write-off in property portfolios Press, 30 November 1989, Page 31
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