Fund manager Newmark Capital cut the value of its brand-new flagship Bunnings store in suburban Melbourne by 10 per cent, flagged further asset sales and cut its distribution by 16 per cent as higher interest rates hurt the performance of the ASX-listed large-format trust.

A day after settling the acquisition of the 18,600 square metre, two-level store in Preston, valuations released as part of the Newmark Property REIT’s full-year results show the property is now valued at $84 million (as of June 30), down from the $93 million the then-unfinished property was valued at in December – a fall of 9.6 per cent.