Multiplex fund sheds value

One of New Zealand's largest real estate funds has shed value.

The Sydney-managed Multiplex New Zealand Property Fund owned property valued at $701.9 million in June but this week it declared that had now shrunk to $655.4 million.

Leon Boyatzis, fund manager of Brookfield Multiplex in Australia, said a $21 million Wiri property had been sold, which brought the portfolio value down to $680 million.

The rest of the drop came after the fund's real estate was revalued, he said.

The fund this week released accounts for the half-year. It owns some of the country's largest and most valuable office towers, including the ASB Bank Centre on Albert St in Auckland and the Gen-i Tower on Wyndham St, where Brookfield Multiplex has its New Zealand headquarters.

The fund's accounts show a net after-tax loss of A$7.1 million ($9.14 million) for the December half, compared to a A$78 million loss in the previous corresponding period.

The fund, which has not paid its investors dividends for 18 months, owns 17 properties and earned A$37 million total revenue during the half, compared with A$39 million previously.

Any cash earned is being used to repay debt and for essential maintenance and capital expenditure.

The Wiri property, on the books at $21 million, was sold in October for $19 million, and the fund is now trying to sell other properties to repay debt.