Suspended Brandeaux property portfolio hit by fresh writedown

The value of the suspended Brandeaux Student Accommodation fund's property portfolio has been cut by more than 6% by Savills following an independent valuation process.

In a property valuation undertaken for the financial year-end following the portfolio's failed IPO, Savills said it now values Brandeaux's student accommodation portfolio at £1.12bn at the end of August, down £72m compared to the £1.19bn the portfolio was worth at the same time last year. The 6.1% decline has had an 8.2% impact on the fund's NAV because of gearing, Brandeaux said. Savills said the portfolio's valuation had been reduced in the view that property operating costs should be higher than previously expected, while it has also scrapped a ‘portfolio premium' which it said no ...