No major properties were revalued other than WS1 (cap rate weakened from 6.0% to 6.38%), and WS2 (cap rate steady at 6.5%). Valuations on both buildings increased, due to the offsets arising from increased rents and occupancy.
The problem is that even though they referred to the sale of 66 St. Georges Tce. as generating renewed interest in the Perth CBD, I don't think the cap rate of a touch over 8% for that property is fully reflected in the WS1 and WS2 revaluations. I think we as investors still need to add roughly a further 0.5% cap rate weakening here, and perhaps another 0.5% - 1.0% to their other holdings to get better estimates of current market value.
On that basis, if GDI were to hypothetically proceed with an orderly liquidation of the entire portfolio, it's hard to see NTA now dipping much below $1.00/unit.
Mill Green concept is interesting. They're looking at making it a retail precinct which now enhances the attractiveness of all 3 holdings (1 Mill St. with DA, 5 Mill St. and 197 St. Georges Tce.) Not to mention potential bridging between buildings.
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