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The Directors of MacarthurCook Limited (ASX Code: MCK) subsidiary, MacarthurCook Fund Management Limited, the responsible entity of the MacarthurCook Property Securities Fund (ASX Code: MPS), are pleased to announce that the offer of new fully paid ordinary units at $1.00 per unit in MPS, closed on 3 December 2004 over subscribed at the maximum subscription level of 70 million units. Macquarie Equity Capital Markets Limited was the Lead Manager and Underwriter of the Offer.
Applications for units in MPS significantly exceeded the maximum amount on offer and the Directors of MacarthurCook Funds Management Limited are excited by both the prospects for the Fund and the support shown by prospective unitholders.
Holding statements for successful applicants holdings are expected to be despatched on 14 December 2004 with trading of units on the ASX expected to commence on 17 December 2004.
Key features of the MacarthurCook Property Securities Fund are:
- Stable, quarterly income returns forecast at 9.30% per annum in the period from Issue Date to 30 June 2005 and 9.5% per annum in the year to 30 June 2006
- High tax advantaged income forecast at 85% in the period to 30 June 2005 and 75% in the year to 30 June 2006
- Targets property sectors likely to outperform the benchmark
- Diversification by geography, asset type, manager and tenant
- MacarthurCook’s investment management focus on property and mortgage assets
- Strong investment analysis and due diligence process on acquisitions
- Access to leading property managers
- Access to wholesale direct property funds
- Investments in listed property vehicles providing liquidity and supplement target sector allocations
- Tactical use of debt to facilitate acquisitions of further investments
- Access to Placement Fees
MacarthurCook is pleased to announce the launch of the MacarthurCook Property Securities Fund. The Fund, which will have a minimum size of $50 million is to be underwritten by Macquarie Equity Capital Markets Limited and will be listed on the Australian Stock Exchange.
A Product Disclosure Statement has been lodged with the Australian Securities and Investments Commission on 8 November 2004. A person should consider the Product Disclosure Statement in deciding whether to acquire, and continue to hold, units in the MacarthurCook Property Securities Fund.
Access an electronic copy of the MacarthurCook Property Securities Fund Product Disclosure Statement (“PDS”) by clicking here.
On 2 July 2004 MacarthurCook updated the market on its progress and included an outlook for the new financial year.
MacarthurCook currently manages over $460 million of assets including the $340 million MacarthurCook Mortgage Fund (formerly the National Australia Mortgage Fund), the $65million MacarthurCook Industrial Property Trust and as investment manager of the $63 million Advance Property Securities Fund.
Whilst the financial results for the 2004 year are yet to be finalised, the Board believes it prudent to update the market on the Company’s financial status and the objectives for next financial year.
The expected position for the 2004 financial year end is:
Funds under management: $460 million
Total revenue: $4.0 million
Earnings before interest, tax, depreciation and amortisation
(EBITDA): $300,000
The above results have been achieved despite the Company generating fee income from funds management activities from only late December 2003.
The respective results for the previous financial year, whilst the Company was transitioning from an internet service provider to a funds management business, were:
Total revenue: $2.3 million
EBITDA: $549,000 loss
The forecast current year results therefore represent a significant improvement in the performance of the Company.
The Company’s ambition in the medium term remains to grow funds under management to over $1 billion in order to achieve the expected economies of scale and increased profitability. Meanwhile we are confident of our prospects for improved profitability next financial year.
MacarthurCook has been awarded a $60 million mandate as investment manager of the Advance Properties Securities Fund.
MacarthurCook undertook a strategic review of the property securities asset class last year and felt that there was a market opportunity for more specialist investment managers. Property securities investment fits well with the strong research approach that we adopt for direct property.
The benefit of this mandate to MacarthurCook is that it provides a springboard into a growing asset class and into institutional investment managers. To date our focus has been retail oriented, with MacarthurCook managing money on behalf of over 6,000 investors.
We see that there is a good opportunity to pick up additional institutional mandates over time.
Under the mandate arrangement, Advance will have exclusive access to the retail market in relation to MacarthurCook's property securities investment capability.
One of out original business strategies was to form alliances with firms that could add value to our business. Clearly, Advance has a well known brand name and established relationships with financial planners and investment platforms, which will assist in the growth of our funds under management and recognition of MacarthurCook.
 
MacarthurCook's investment products have received endorsement from a number of research firms in recent weeks.
The MacarthurCook Industrial Property Trust launched in January has been researched by both Lonsdale Research and ASSIRT, receiving a recommended rating from Lonsec and an investment grade ‘3 star’ rating from ASSIRT. The Trust, which this week settled on the purchase of its first four industrial properties (see right), has received widespread support from dealer groups in recent weeks with an announcement in relation to its inclusion on a couple of investment platforms due soon.
The MacarthurCook Mortgage Fund has recently been researched by Three Sixty Research, Property Investment Research ("PIR") and ASSIRT.
Three Sixty has given the Fund an approved status whilst both ASSIRT and PIR gave the Fund their second highest rating, a ‘4 star’ rating.
In their ratings report PIR said "In PIR’s view, the Fund has a sound portfolio of assets and is managed by an experienced management team who have put in place sound compliance procedures and good management systems. The returns from the Fund should improve comparative to similar funds due to the policies introduced by MacarthurCook".
ASSIRT in their report judged MacarthurCook’s mortgage sector capability and business management and operating capability as strong.
It is very pleasing that so soon after taking over the management of the old National Australia Mortgage Fund in late December MacarthurCook has been able to demonstrate to a number of leading researchers the depth of our resources and strength of our investment process."
We are pleased to announce the appointment of Mr Phillip Anderson as a non-executive director of MacarthurCook Limited and its investment management subsidiaries.
Mr Phillip Anderson has over 30 years experience in the property industry with senior executive roles with Hooker Corporation and Lend Lease Corporation. He was Finance Director of Civil and Civic, Lend Lease Property Group and Chief Executive of Lend Lease Development.
Phillip is a Certified Practicing Accountant, a Fellow of the Institute of Company Secretaries and Member of the Australian Institute of Company Directors.
Phillip brings to MacarthurCook a depth of experience in the property industry in a variety of roles such as finance, property development and corporate strategy. We are very pleased to be able to draw on this experience as we endeavour to take MacarthurCook to the next stage of its development.
Mr Anderson said “What attracted me to MacarthurCook was the opportunity to participate in the growth of a young specialist funds management organisation which has a strong management team dedicated to continued success. MacarthurCook presents a very exciting opportunity”.
Following requests from dealer groups MacarthurCook has reached agreement with BT Financial Group for the listing of the following products on the BT Wrap Investment Menu:
The MacarthurCook Industrial Property Trust is one of the first direct property funds to be made available through an investment platform and provides advisers access to the benefits of direct property with the convenience of a platform administration service.
The BT Wrap platform administers over $11 billion on behalf of approximately 5,000 advisers and 50,000 investors and is one of the fastest growing wraps in Australia
The MacarthurCook Industrial Property Trust has settled the acquisition of its first four properties this week in accordance with the Product Disclosure Statement issued in January.
The Trust settled the acquisition of:
- 28 Bullockhead Street, Sumner Park, Queensland, purchase price $7,200,000
- 300 Treasure Road, Welshpool, Western Australia, purchase price $8,000,000
- 17 Leadership Way, Wangara, Western Australia, purchase price $4,650,000
- 7 Modal Crescent, CanningVale, Western Australia, purchase price $8,850,000
The addition of the ASSIRT Research rating (see left) along with the previous recommended rating from Lonsec Research will enable MacarthurCook to broaden the support base for the Trust amongst investment platforms and financial planners.
For further information regarding the MacarthurCook Industrial Property Trust contact:
Chris Calvert
MacarthurCook Head of Property
on 03 9660 4503.
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