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coppertop

It will reduce gearing but not NTA.

Anything sold with equity at book value will reduce debt with funds used to pay of any debt associated and any monies left over would be to pay down other debt anywhere else.

e.g

2 properties valued at 100,000 = 200,000
2 loans for these properties are 80,000 each
NTA = 40,000
LVR = 80%

If a property is sold for book value then we now have:
1 property valued at 100,000 = 100,000
1 loan at 80,000 + 20,000 in cash to reduce this loan
= 1 loan left at 60,000

NTA still = 40,000
LVR is now 60% <<<<<<<<<<<<<

Selling properties below book value can also reduce gearing as long as they are not sold less then any loan outstanding against the property.