By Andrew Starke

Listed property trust ALE Property Group (ALE) has announced that, as at December 31, 2010, the directors have revalued its property portfolio to $735.63 million.

This is an increase of $21.78 million over a June 2010 valuation and is directly attributable to the 2.95 percent average CPI increase in rentals arising from the November 2010 lease review.

The property group, Australia's largest listed freehold owner of pubs, said the directors’ revaluations were supported by independent advice from Urbis that ‘it would be reasonable for the directors of ALE to maintain the capitalisation rates adopted as at 30 June 2010’.

At 30 June 2010 ALE’s independent valuers, Urbis, valued a representative sample of 29 properties and the directors valued the remaining 58 properties.

The Board has not had the individual properties revalued independently as at December 31, 2010 and the next round of independent valuations will be undertaken as at June 30, 2011.

All of the pubs in the portfolio are leased to members of Australian Leisure and Hospitality Group Limited (ALH) for an average initial term of around a further 18 years.

ALH is owned by a joint venture that is 75 percent owned by Woolworths.

The Shout Team

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