MacarthurCook’s expansion plans into Asia appear to be gaining momentum.
According to reports out of Singapore late last night, the fund manager is planning to list a $S300-$S400 million industrial property REIT on the Singapore Stock Exchange.
According to Reuters Singapore, the listing is planned for the middle of 2007.
Only last week, at the group’s annual general meeting managing director Craig Dunstan told shareholders that MacarthurCook is looking to increase its activities offshore, as it aims to have over $2 billion of funds under management over the medium term.
“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,” he said.
Currently, MacarthurCook has $1.04 billion of funds under management including the MacarthurCook Industrial Property Trust and the MacarthurCook Property Securities Fund, 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.
“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,” Dunstan concluded.
MacarthurCook currently does not have any property assets in Singapore. The group does have a presence in the region with its planned listing of the $S100 million MacarthurCook Property Securities Fund.
MacarthurCook’s industrial REIT listing will join an elite list of Australian backed REITs currently listed on the SGX, including industrial property fund Ascendas REIT – jointly owned by Macquarie Goodman; Allco Commercial REIT – backed by Allco Finance; Prime REIT – owned a Macquarie Bank
Singapore has the third largest REIT market in the Asia region, behind Australia and Japan.
The latest Australian Stock Exchange LMI Update has put a $185 billion market cap on Australian LPTs, whilst the Japan REIT market is estimated to be worth $42 billion.
Reuters Singapore said a MacarthurCook spokesman declined to give details of the group’s plans.
By Nelson Yap and Adam Parsons
