Units in Lendlease’s Australian Prime Property Fund Retail shed almost a quarter of their value over the year to June, reflecting the fortunes of the wholesale fund that in August gave itself another three years to meet redemption requests of investors wishing to exit.
Units in the wholesale retail fund dropped 23 per cent to $1536.89, documents filed with corporate regulator ASIC show, as the value of assets in the trust fell to $4.2 billion from $5.6 billion.
“The decline in the value of the trust reflects the challenged retail environment and the inclusion of COVID-19-related allowances in the trust’s property values as at 30 June 2020,” the report says.
“The trust also divested Westfield Marion during the financial year.”
The fund extended the redemption period after its responsible entity determined it was not liquid – not in general solvency terms, but in terms of the definition that 80 per cent of its properties were liquid assets that could be realised at market value during the set redemption period.