Macquarie Countrywide posts $1.43 billion annual loss

24 Aug 2009

The largest of Macquarie Group's listed property trusts – Macquarie Countrywide Trust has posted a net loss of $1.43 billion for the year in a dramatic reversal of its $100.4 million profit in the previous year.

Although the trust's operating profit increased 1.9 per cent from the previous year to $364.4 million, the company had to write down the value of its investments amounting $1.3 billion.

According to Macquarie Countrywide chief executive officer, Stephen Sewell the trust had achieved its objective of selling down its US assets, having sold or contracted to sell $2.3 billion of assets and repaid debt of $1.7 billion.

He said the trust would refinance $450 million in CMBS (commercial mortgage backed securities) notes. The notes are to mature in December and as per indications existing note holders including major institutions were prepared to reinvest in the notes.

He said the trust expected to refinance $450m in CMBS (commercial mortgage backed securities) notes, due to mature in December and that early indications are that the existing note holders, including major institutions, are prepared to reinvest in the notes.

He said the trust was confident the issue could be the first new CMBS in the country fro more than two years.