This article is from the Australian Property Journal archive
MacarthurCook is set to boost its retail portfolio by buying out Arc Funds Management, which has manages two retails properties valued at more than $110 million.
Arc Funds Management is the manger of two property funds, the Brand Smart Nunawading Syndicate and the Brand Smart Riverbank Syndicate.
MacarthurCook’s managing director Craig Dunstan said the acquisition of Arc from Professional Investment Holdings Ltd would provide an avenue for the company to enter the retail property sector via a strong retailing concept.
“Brand Smart’s Nunawading centre was Australia’s first premium factory outlet, and both Brand Smart centres now provide unique shopping experiences.
“The Brand Smart property funds have total assets of more than $110 million, which will bring MacarthurCook’s funds under management to about $850 million,” he added.
The agreement to acquire Arc follows the expansion in recent years of MacarthurCook’s sector-specific property funds, including the $118 million MacarthurCook Industrial Property Trust and the $75 million MacarthurCook Office Property Trust.
The Nunawading Brand Smart Centre in Victoria features premium tenants, including Polo Ralph Lauren, Calvin Klein, Esprit and Villeroy & Boch.
The Brand Smart Riverbank is a four level heritage listed commercial/retail building with a net lettable area of 13,652 sqm and car park for 530 vehicles. It is currently under a 60-year lease from Parramatta City Council.
Tenants at Riverbank Brand Smart in Parramatta, New South Wales, include Fila, Sheridan, Saba, Carolyn Taylor and Simona.
The centre also features a Harris Farms supermarket and office accommodation leased to Landcom.
The consideration payable was $1.2 million plus net tangible assets, which was financed via a placement to two institutional investment managers and short-term debt finance.
Dunstan said the transaction with Professional Investment Holdings will provide an ongoing relationship with more than 1100 investors in the two syndicates and a larger number of financial planning firms.
Recently, MacarthurCook posted a half year net profit of $0.7 million for the six months to December 31, 2005.
The latest purchase will increase the company’s fund under management business to $820 million.
By Nelson Yap
