Originally Posted by
Beagle
Don't necessarily disagree with posters above but on the other side of the coin KPG are morphing their malls into a more comprehensive product offer. An excellent example of this is our closest mall in New Lynn Auckland where they have added a whole new extension wing of bars and restaurants along with the Reading Cinema complex and this addition has really transformed the whole mall into a diversified shopping and entertainment complex. Its frequently been extremely difficult to get a car park whereas before this transformation the place was looking a little sad and under patronised. On a side note, Lynnmall was N.Z.'s first shopping mall and I remember starting my career in 1980 just over the road at an accounting firm and I would wander over the road and do my shopping when it was nothing much more than an open strip of shops with a walkway down the middle.
I'm pretty sure malls will keep morphing as they have always done in the past on as required basis to stay relevant.
To answer the Op's question, the revaluation is the result of valuers using lower capex rates in their valuation model's consistent with interest rates and capitalisation rates at 60 year lows so yes the revaluation is fair in this ultra low interest rate environment. Amazing that you can borrow money fixed for 2 year's at only 3.99%. Never seen that before in my career.