News Archive 2005

MacarthurCook was listed as one of the 100 fastest growing companies in the BRW Fast 100 survey published on 13 October 2005. This survey recognises those companies with the greatest increase in revenue over the past financial year.

The Directors of MacarthurCook Fund Management Limited (“MacarthurCook”), the Responsible Entity of the MacarthurCook Property Securities Fund (the “Fund”) are pleased to announce that the Rights Issue and Public Offer for the Fund has closed oversubscribed. The full amount of $51.69 million has been raised.

Allotment of the new units was made on Monday, 26 September 2005 and unitholder statements will be despatched on Thursday, 29 September 2005. Trading of the new units is expected to commence on Friday, 30 September 2005.

MacarthurCook Limited today announced its audited financial results for the period to 30 June 2005.

Results Summary

	2005 $'000	2004 $'000	% Change
Revenue from ordinary activities	7,898	4,000	+97%
EBITDA	1,726	345	+400%
Net profit/(loss) after tax	387	(1,167)	N/A
Total Assets	15,380	16,907	-9%
Net Assets	8,163	7,761	+5%

Key Highlights

The past twelve months have been significant in terms of development and growth of MacarthurCook as a specialist property, property securities and mortgage investment manager. The development and launch of new investment products, a broadening of our distribution base and a significant increase in funds under management have resulted in improved revenue and profitability.

During the period, significant achievements have included:

• The first net operating profit for the Company since its transformation into an investment management business;
• The announcement of an initial dividend of 0.5 cents per share;
• An increase of 30% in funds under management to $608 million;
• An increase in new investment applications from $17 million to $191 million;
• The launch of the MacarthurCook Property Securities Fund which listed on the ASX after a $70 million initial public offer. It recently announced a further $52 million rights offer and public offer;
• The launch of the MacarthurCook Diversified Property Income Fund which has received research ratings of "Recommended", "Highly Recommended" and “Quality Fund" from Lonsec, InvestorWeb and Managed Investments Assessments respectively; and
• The acquisition of a $54.5 million office property by the MacarthurCook Office Property Trust which is expected to be launched in September 2005.

Click here to review full ASX Announcement.

The Directors of MacarthurCook Fund Management Limited (“MacarthurCook”), the Responsible Entity of the MacarthurCook Property Securities Fund (the “Fund”) today announced that the Fund is seeking to raise up to $51.69 million via a non-renounceable rights issue to existing unitholders and a public offer (collectively the “Offer”).

Click here for MCK Property Securities Fund Rights Issue and Public Offer Product Disclosure Statement.

Overview of the Offer

The rights issue is non-renounceable and entitles existing, eligible unitholders to subscribe for one new fully paid ordinary unit (“New Unit”) for every two existing units held at the record date, at a price of $1.03 per New Unit.

The rights issue seeks to raise $36.24 million and is fully underwritten by Macquarie Equity Capital Markets Limited, which is also lead managing the Offer.

The public offer invites new investors to invest in the Fund and seeks to raise up to $15.45 million at a price of $1.03 per New Unit.

The Offer opens on 22 August 2005 and closes at 5.00 pm (Melbourne time) on 19 September 2005. New Units are expected to commence trading on the ASX on 30 September 2005.

New Units issued pursuant to the Offer will not be entitled to participate in the distribution for the calendar quarter ending 30 September 2005, but will otherwise rank equally with existing units from allotment and will be entitled to a distribution for the quarter ending 31 December 2005.

The Offer proceeds will be used to repay existing debt of $27.3 million and allow the Fund to make further investments in listed and unlisted property trusts.

Click here to review full ASX Announcement.

MacarthurCook Fund Management Limited, as responsible entity of the MacarthurCook Property Securities Fund (the “Fund”), is pleased to announce its audited financial results for the period to 30 June 2005. Full details of the results can be found by clicking here. Key highlights of the results are:

• IPO PDS earnings per unit forecast (EPU) exceeded – EPU for the period was 6.29 cents; 28.6% above the IPO PDS forecast.
• Increased distributions per unit (DPU) – DPU for the period was 4.94 cents per unit; 0.6% above the IPO PDS forecast.
• Unit Price increase - Unitholders enjoyed a 10% increase in unit price from $1.00 per unit to $1.10 per unit over the period.
• 23.2% annualised total return – Due to the improved income distribution and the increase in unit price during the 6½ month period from listing on 13 December 2004 to 30 June 2005, unitholders enjoyed an annualised total return of 23.2%.
• Increased market capitalisation – The market capitalisation of the Fund increased from $70 million at listing to $77.2 million at 30 June 2005.
• $37.9 million in additional investments since IPO – The Fund acquired $37.9m of investments in 8 separate unlisted investee funds in addition to those identified in the original IPO PDS.
• ASX unit liquidity – Approximately 170,000 units were traded per day over the period, providing investors with liquidity to acquire or sell units in the Fund.

The directors and management of the RE are pleased with the results for the initial 6½ month period which have exceeded the forecasts made in the Fund’s product disclosure statement.

Click here to review full ASX Announcement.

The 2005 year is the first full year of operation since the Company acquired the business of National Australia Fund Management Limited in December 2003.

The Company's estimated forecast earnings are as follows:

The goodwill amortisation relates to the mandatory charge required under current Australian generally accepted accounting principles. The new AIFRS accounting standards, which commence for the Company on 1 July 2005, do not require this mandatory amortisation.

The directors have carried out a preliminary review of the Company’s tax position and expect the tax expense for the year to be slightly lower than 30% of the net profit before goodwill amortisation reflecting in part its historical tax position.

Specialist investment manager MacarthurCook Limited has today announced the launch of its latest investment fund, the MacarthurCook Office Property Trust.

The Trust is to be an open-ended sector specific property fund targeted at retail and smaller institutional investors.

The Trust’s initial acquisition is a 13 storey office property at 181 Miller Street, North Sydney in the heart of the North Sydney business district.

Contracts were exchanged on the property on 29 June 2005. The property was purchased for $54.5 million on an initial yield of 9.0%

Craig Dunstan, Managing Director and Chief Investment Officer at MacarthurCook, said the property had many high profile commercial tenants such as the Australian Rugby Union, Westpac Banking Corporation and BIS Shrapnel.

“There are a total of 21 tenants in the building including those listed above and this spread, together with the longevity of leases and the calibre of tenants should provide investors with a secure and continuous long term income stream,” said Mr Dunstan.

He said the Trust will acquire additional properties over time to diversify the portfolio for investors. “We will be actively pursuing additional acquisitions in Melbourne, Brisbane, Adelaide and various regional centres as well as opportunities in New Zealand cities,” he said.

Please click here to view the full ASX announcement on the launch of the MacarthurCook Office Property Trust.

Specialist property and mortgage investment manager MacarthurCook Limited has announced the launch of the MacarthurCook Diversified Property Income Fund (DPIF).

Managing Director of MacarthurCook, Mr Craig Dunstan said that “the development of the MacarthurCook Diversified Property Income Fund was in response to requests from investors and financial planners for a more broadly based property investment fund with the added attraction of easier access to funds than ordinarily offered by property syndicates and unlisted property trusts.”

“DPIF will be an umbrella property fund giving investors access to MacarthurCook’s current and future sector-specific property trusts with liquidity being provided by DPIF having a 40% investment in the ASX-listed MacarthurCook Property Securities Fund”.

The MacarthurCook Property Securities Fund (ASX code : MPS) is a $75 million property securities fund which conducted a successful IPO in December last year. The Fund owns interests in over 28 different property funds managed by 21 different fund managers.

“With an increasing percentage of retail money going through investment platforms, we needed to design a fund that gives investors access to the returns and tax advantages associated with direct property, whilst providing clients greater access to their money.”

“We believe this fund will satisfy the needs of the investors and financial planners who previously did not invest in property syndicates.”

Coinciding with the launch of the DPIF, MacarthurCook has also announced the release a new Product Disclosure Statement for the DPIF, as well as its other unlisted funds - the MacarthurCook Industrial Property and Trust and the MacarthurCook Mortgage Fund.

A copy of the new Product Disclosure Statement is available by clicking here or by contacting MacarthurCook’s Client Service staff on 1300 655 197.

MacarthurCook is pleased to announce the release of a new Product Disclosure Statement (PDS) for its three unlisted funds, namely the Industrial Property Trust, Mortgage Fund and Diversified Property Income Fund, to replace the existing PDSs for those funds.

Please click here to view the new PDS.

The half year to 31 December 2004 has been a further period of growth for MacarthurCook as we approach $600 million of funds under management on behalf of over 8,500 retail and institutional clients.

Of particular note during the past six months have been the following achievements:

• establishment of a property securities investment capability;


• the appointment as investment manager of the Advance Property Securities Fund;
  
• the growth in the MacarthurCook Mortgage Fund from $339 million at 30 June 2004 to $382 million at 31 December 2004;
  
• the growth in sales for the MacarthurCook Industrial Property Trust, the settlement of the final property in the initial seven property portfolio and the acquisition of the Trust’s first New South Wales property;
  
• a dramatic increase in sales over the six month period with YTD new investment applications of over $160 million for the Mortgage Fund, Industrial Property Trust and new Property Securities Fund;
  
• the successful initial public offer and listing of the $70 million MacarthurCook Property Securities Fund (ASX code: MPS);
  
• the continuing improving investment performance of all the funds we manage.

It is particularly pleasing to report to shareholders a net profit before tax, amortisation and depreciation of $208,000 for the six month period.

The result after depreciation and amortisation of $318,000 and tax of $9,000, was a net loss of $119,000.

The depreciation and amortisation amount predominantly relates to
the current required accounting
practice of amortising the cost of goodwill on the acquisition of the responsible entity of the MacarthurCook Mortgage Fund in December 2003.

Over the second half of this financial year we will continue to look to grow our funds under management through:

• broadening the distribution of our range of investment funds
• the launch of new property investment funds

We are currently planning to launch other sector specific direct property funds to complement the Industrial Property Trust as well as launching the MacarthurCook Diversified Property Income Fund for investors who do not wish to make sector allocation decisions.

In addition, we will be looking to introduce our property securities investment capability to the institutional market.

With our business cost base now relatively fixed, we look forward to the anticipated growth in funds under management delivering improved profitability to our shareholders.

This is the first report for the MacarthurCook Property Securities Fund since its successful initial public offer on 17 December 2005 when $70 million was raised.

In the period from listing to December 2004 the following achievements occurred:

• Investments totalling $51m were placed in unlisted and listed property trusts;
  
• The unit price increased from its initial price of $1.00 to close at $1.05 on 31 December 2004.

Since 31 December 2004 the following events have occurred:

• Additional investments have been made so that the Fund is now fully invested with $52m invested in unlisted property funds, $13m in listed property trusts and companies with $1m held in cash;
  
• The Fund has been further diversified with an increased exposure to retail assets and Childcare real estate.

The Fund currently has over 2,300 unitholders and a market capitalisation exceeding $75 million.

No distributions were paid or are payable during the period. The first distribution of the Fund will be for the quarter ended 31 March 2005, as disclosed in the Product Disclosure Statement dated 8 November 2004.