MacarthurCook has launched into Singapore looking to raise $S100 million for its MacarthurCook Property Securities Fund with a second listing on the Singapore Stock Exchange.
MacarthurCook Property Securities Fund is a diversified property securities fund, investing in a cross a range of unlisted and listed property trusts and property companies.
It is currently listed on the Australian Stock Exchange.
MacarthurCook’s managing director Craig Dunstan said the listing plan was part of group’s growing focus on Asia, which has included specialist research visits to key regional markets, membership of the Asian Public Real Estate Association, and the appointment as investment manager of the first specialist Asia Pacific real estate fund to be launched in the US.
He added that capital raising is a proactive move by the fund to take advantage of current market conditions, including the growing focus on Singapore’s expanding real estate investment trust market.
“This initiative will expand the fund and provide a platform for future growth,” he added.
Dunstan said Singapore’s REIT market was gaining in sophistication, and Singaporean investors were demanding exposure to overseas property markets.
“We believe this will be the first time an Australian property trust has sought a secondary listing on an Asian stock exchange, and this will be the first fund listed on the Singapore Stock Exchange that is invested in real estate assets outside Asia.
“Singaporean investors will find the MacarthurCook Property Securities Fund an attractive product, and a secondary listing on their home exchange will also make the Fund a less volatile investment with unitholder support in the two markets,” he added.
Dunstan said the capital raising would enable the fund to take advantage of the lower cost of capital in Singapore compared with Australia.
It addition, he added it will reduce the fund’s risk profile by broadening its portfolio and reducing its debt facility and allow the fund to further diversify and expand its international reach.
MacarthurCook is currently investigating investments in emerging sectors and new markets, such as Europe.
The listing is expected to be completed by July raising about $S100 million for the fund.
OCBC Bank, one of Asia’s leading financial services groups, is lead manager and underwriter of the listing.
By Nelson Yap
