Lend Lease Primelife valuations drop by 5%

LLP has revalued one third of its Australian retirement portfolio and all of its New Zealand portfolio, with a draft report that it has declined in value by approximately 5%. They report this is a consequence of a rise in the average portfolio discount rate from 12.5% to 13%. The average growth rate has remained unchanged at 4% per annum. There loan to valuation ratio is expected to be approximately 31%. They also report they are likely to breach their interest rate cover ratio with their financiers because of these revaluations - which they will have to work out that banks.