Multiplex fund faces fall

Big valuation drops could show up in the latest report from the unlisted $701 million Multiplex New Zealand Property Fund.

Kym Bunting of Brookfield Multiplex's office in Auckland said yesterday the December 31, 2009 half-year report was completed and showed updated valuations.

The report has not been posted on Brookfield Multiplex's website which also wrongly listed two properties the fund had sold some time ago.

A distribution centre in Wiri and Grey Lynn's Woolworths supermarket in Richmond Rd were sold but were still listed as being in the fund, he said, adding that he would alert the Sydney-based managers to the mistakes.

Valuations shown alongside the commercial, industrial and retail properties in the fund had been updated but the website only showed last June's valuations, he said.

These were carried out by Colliers International and were now out of date and the fund's portfolio might now be worth under $701 million.

Leon Boyatzis, the fund's Sydney-based manager, said yesterday the report would be out on Monday. He wrote to Australian investors last week telling them dividends had been suspended. This was because of a funding crisis and the need to reduce debt.

The fund's loan-to-value ratio is one of New Zealand's highest, standing at 65 per cent.