$18 million wiped off value of buildings

Property company Asset Plus has taken a big hit, with the value of three main properties falling almost $18 million from last year because of the Covid-19 pandemic disruption.

It is also fielding requests for rent relief and claims for rent reduction in line with lease terms.

Asset Plus said it had finalised the value of its assets for the year ending March 31, 2020.

Earlier in March, valuation firms had told the company that they would be unable to finalise valuations by the March 31 date because of the evolving Covid-19 situation.

Asset Plus has now received the updated valuations, which take into account the current position in respect of the virus.

The Auckland Council office building at 35 Graham St, which Asset Plus bought last year for $58m, has fallen in value to $50.1m.

The Eastgate shopping centre in Linwood, East Christchurch, was worth $46.7m, down from $54.5m a year ago, the ‘‘fair value’’ stated in the 2019 annual report.

Its shopping centre at Stoddard Rd, Mt Roskill, Auckland, was worth $37.5m, $2m lower than the value in the 2019 annual report.

The fall in value is about $17.7m across the three properties.

Asset Plus said since the beginning of the lockdown it had received several rent relief requests from tenants alongside claims for rental abatement in accordance with lease terms.

‘‘Given the uncertainty regarding the length of the lockdown and ongoing conditions for the various alert levels, Asset Plus is unable to currently quantify the impact of the lockdown for the 2021 financial year.’’

The company’s board had decided not to pay a final quarter dividend for March 31, 2020 year.

Dividends for the 2021 financial year would be considered each quarter.