This article is from the Australian Property Journal archive
MacarthurCook has launched into the United States market through a joint venture with leading US real estate group RAdvisors.
MacarthurCook and RAdvisors have jointly developed the RAsia Pacific Real Estate Fund, which listed on the American Stock Exchange on May 26.
R manages one of the largest and most diverse portfolios of publicly owned real estate in the United States. The group is based in Boston and since 1986 R has grown its assets under management to more than $US12 billion.
R currently manages three publicly owned REITS, including the $US5.2 billion HRPT Properties Trust and four publicly owned real estate securities mutual funds.
MacarthurCook’s managing director Craig Dunstan said the fund had just completed a $A45 million capital raising in the US, which was lead managed by RBC Capital Markets.
RAsia Pacific Real Fund is the first fund in the US that focuses on Asia-Pacific real estate securities, RAdvisors will manage the fund, with MacarthurCook as the sub-advisor/investment manager.
The announcement follows the recent approval of MacarthurCook as an investment advisor by the US Securities and Exchange Commission, which MacarthurCook to manage investment funds on behalf of US investors.
Dunstan said MacarthurCook had been developing its Asian real estate securities investment capability following last year’s appointment of Craig Turnbull as head of real estate securities.
"This is a very important development for MacarthurCook as we look to expand our business internationally,” he added.
Dunstan said a clear understanding of local market conditions was necessary to develop a solid investment strategy for the Asia-Pacific region.
“Though increasingly global in investor profile, real estate remained a local business that demanded on-the-ground competencies.
"We see this initiative with R as providing an opportunity to gain further institutional mandates for the management of Asia-Pacific real estate securities from institutions in Australia and the US," he added.
Dunstan said the Asian real estate securities market had seen significant growth in recent years, with most key markets enacting REIT laws that allowed the securitisation of real estate, which was leading to owners listing real estate securities in public markets, and the values of those securities were growing.
He said MacarthurCook expected investment opportunities would continue to expand across the region as populations, GDPs and personal incomes rose and nations – in particular China and India – became more urbanised, driving growth in investment grade real estate.
Dunstan said the RAsia Pacific Real Estate Fund would be attractive to US investors because Asia-Pacific real estate securities had a low correlation to US REITs and offered valuable diversification benefits to US investors.
Last week, MacarthurCook sought to raise $S100 million for its MacarthurCook Property Securities Fund with a second listing on the Singapore Stock Exchange.
By Nelson Yap
