MacarthurCook is set to increase its activities offshore, as the company aims to grow its funds management business.
At yesterday’s annual general meeting with MacarthurCook’s managing director Craig Dunstan said the group has enjoyed another successful year with an increase in funds under management, revenue, profitability and share price.
“As the year unfolded it became increasingly evident that interesting opportunities are available to MacarthurCook in both established real estate markets such as the United States and emerging real estate securitisation markets such as Europe and Asia.
“Conversely, the Australian market, with the highest percentage of institutional ownership of real estate in the world, will become an increasingly difficult market from which to generate substantial growth,” he added.
During 2006, the value of the MacarthurCook’s funds management business increased from $608 million at the start of the year to $1.04 billion at year end.
This growth in funds under management was driven by the continuing growth of the MacarthurCook Industrial Property Trust and the MacarthurCook Property Securities Fund, the launch of new products such as the MacarthurCook Office Property Trust, a new investment mandate with the RMR Asia Pacific Real Estate Fund and the acquisition of Arc Funds Management Limited.
Dunstan said the company is now 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 billion – $5 billion in funds under management over the longer term.
“We see further opportunity to develop our business in the Asian region in the years ahead. We believe that MacarthurCook has the operational platform to continue its growth.” he concluded.
By Adam Parsons