Abacus Property Group (Abacus) today updated the market on the impact of the recent natural disasters in Queensland and Christchurch, New Zealand.

Abacus does not itself own assets that were materially affected by the natural disasters. However, a number of assets managed by the company through its funds have been affected.

Earthquake in Christchurch, New Zealand

Chateau on the Park Hotel, Abacus Hospitality Fund
The hotel, which has a book value of $21.3 million as at 31 December 2010, has suffered property damage following the earthquake. The hotel is located outside the critical CBD cordon and is currently closed while it is assessed by structural engineers. It is anticipated that the majority of the hotel rooms will reopen soon and will provide accommodation to the Earthquake Commission for emergency services personnel. It is too early to predict the medium term impact on the value of the hotel.

Ferrymead self storage facility, Abacus Storage Fund
The self storage facility in Ferrymead, which has a book value of $6.4 million as at 31 December 2010, suffered damage following the earthquake. The buildings are currently being assessed by structural engineers, but the facility is open for business.

Riccarton self storage facility, Abacus Storage Fund
The self storage facility in Riccarton, which has a book value of $4.9 million as at 31 December 2010, has not suffered significant damage.

Flooding and cyclone damage in Queensland

Esplanade and Tradewinds Hotels, Cairns, Abacus Hospitality Fund
Fortunately both of the Fund’s hotels in Cairns suffered only minor damage. Both hotels will undergo a previously planned refurbishment program to refresh and maintain their competitiveness in the market and capture growth in occupancy as the market recovers.

Rocklea self storage facility, Brisbane, Abacus Storage Fund
The self storage facility in Rocklea, which has a book value of $7.9 million as at 31 December 2010, suffered significant flooding during the Queensland floods. The facility is currently closed and has yet to be structurally assessed. The insurance cover for this asset has a sub-limit of $500,000 in relation to flooding.

Abacus said all assets are covered by property damage (subject to excess) and business interruption insurance. More importantly, it said there have been no fatalities or serious injuries at Abacus’ properties.