MacarthurCook has set its sights on having $3 to $5 billion of funds under management.
The group has reported a net profit after tax of $2 million for the year, up 134% on $860,000 in 2005 – built on solid foundations set down over the past two years to grow funds under management.
Over the 12 months, MCK’s total revenue was up 81% from $7.9 million in 2005 to $14.3 million.
MCK currently has just over $1 billion in funds management an increase of 71% over $608 million in 2005. During the year, MCK launched a $134 million MacarthurCook Office Property Trust with properties in North Sydney, Brisbane, Adelaide and Canberra.
In addition, MCK continues to grow the size of MacarthurCook Industrial Property Trust with assets of $146 million compared to $83 million one year ago.
As a result of the improved performance of the company, the directors have declare a fully franked dividend of 1.5 cents per share, compared to 0.5 cents per share for the 2005 financial year.
Looking ahead, MCK said opportunities are available in both established real estate markets such as the United States and emerging real estate securitisation markets such as Europe and Asia.
Over the 12 months, MacarthurCook made its first step into offshore markets with the launch of a real estate securities fund in the United States, which invests in Real Estate Investment Trusts throughout the Asia Pacific region.
MCK plans to list the MacarthurCook Property Securities Fund on the Singapore Stock Exchange.
“These moves are the start of an international expansion for MacarthurCook,” the company said.
MCK said the Company is aiming to increase funds under management from the current $1 billion to at least $2 billion over the medium term.
“We believe the company is capable of reaching $3 – $5 billion in funds under management over the longer term,” the company added.
MCK said growth in funds under management is likely to be achieved through further creation of opportunities in international markets; the launch of new products (such as the MacarthurCook Retail Property Trust); a broader distribution and investor base; a higher profile with wider industry and market recognition; and consistent performance of the investment funds.
“Compulsory superannuation savings and the new superannuation tax rules should help to support the flow of investor funds.
“MacarthurCook’s existing operational platform should support this growth and the increase in funds under management should lead to improved margins flowing from the benefits of economies of scale,” the company concluded
By Kathryn O’Meara
