MacarthurCook sells 13% stake for A$4m

MacarthurCook sells 13% stake for A$4m



AUSTRALIAN property asset management firm and takeover target MacarthurCook said yesterday it has sold a 13 per cent stake to IOOF Holdings, an Australian wealth management business, for about A$4 million (S$5.2 million).



This follows a A$31 million takeover offer for MacarthurCook this week by Australia’s AMP Group Holdings at A$1.35 per share through the latter’s unit AMP Capital Investors.


MacarthurCook, which sold 3.45 million shares at A$1.15 each to IOOF through a private placement, said in an announcement that this move will help strengthen its position in its local retail market.


‘MacarthurCook has been looking for some time to secure a domestic partner to help us grow our funds under management in Australia,’ managing director Craig Dunstan said in the statement.


‘This alliance allows MacarthurCook to concentrate on investment management, the continuing growth of our business overseas, and provides an immediate increase in our funds under management and revenue.’


MacarthurCook, which manages Singapore-listed MacarthurCook Industrial Reit (real estate investment trust), said it will work with IOOF to oversee existing funds and develop a range of new direct property-based investment funds.


MacarthurCook will become the preferred direct property and mortgage investment manager of the IOOF Group, which held A$30.7 billion of funds as at March 31 this year.


IOOF will manage the fixed-income component of the A$200 million Mac-arthurCook mortgage fund, as well as market and distribute it to investment platforms and financial planners.


The fund will be re-branded as the IOOF MacarthurCook mortgage fund.


MacarthurCook is listed in Australia and manages about A$1.5 billion in 12 funds.


Moody’s downgraded its rating of Singapore’s MacarthurCook Industrial Reit on Thursday to ‘developing’ from ‘stable’, saying the strategic direction and medium-term operating and financial outlook now hinge on whether the takeover will be accepted.


Source: Business Times

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