Archive | Macquarie

Published 10 December 2006

Macquarie CountryWide Trust has sold a 50% interest in 18 of its 19 New Zealand supermarket properties to a private European investment company for a 68% gain over the acquisition cost base.

Macquarie CountryWide chief executive Steven Sewell said the transaction “executes on the trust’s ongoing strategy to take profits on mature assets and redeploy capital into higher-returning opportunities” while maintaining asset control & geographic diversification.

The price of $103.5 million is $42.1 million over the acquisition cost base for the 50% interest and represents a 6.6% initial yield. The deal remains subject to Office of Overseas Investment approval.

Mr Sewell said Macquarie CountryWide would initially use the sale proceeds to pay down a substantial portion of its New Zealand debt. He said the increased borrowing capacity would enable the trust to provide ongoing funding for the development pipeline and potential future acquisitions in existing or new markets.

Macquarie CountryWide first entered the New Zealand market in September 2000, buying 13 properties from Progressive Enterprises Ltd in a sale-&-leaseback arrangement. Progressive has since been acquired by Woolworths Ltd of Australia.

The portfolio grew to 19 assets and has delivered better than 4%/year average comparable net operating income growth. “The portfolio’s strong growth in value reflects our ability to build relationships with anchor tenants and enhance asset quality to improve trading performance,” Mr Sewell said.

Tim Turner, of Harcourts, introduced the buyer to Macquarie CountryWide.

Earlier stories:

20 January 2005: Macquarie CountryWide buys Meadowbank Foodtown

12 December 2001: Macquarie CountryWide buys three Countdowns

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Attribution: Macquarie CountryWide release, story written by Bob Dey for this website.

Published 6 December 2006

Macquarie CountryWide Trust said yesterday it expected to save $2.1 million/year with a programme of Australian domestic commercial mortgage-backed securities. It launched the first $A450 million programme yesterday.

Chief executive Steven Sewell said the trust would repay existing debt with funds from the issue, reducing its debt margin to 23 basis points over the 90-day bank bill swap rate.

It’s offering tranches at different margins, from $A300 million treble-A at 19 points over the bank bill swap rate down to $A15 million treble-B minus at 57 points over.

CountryWide’s assets include a portfolio of Progressive Enterprises supermarkets in New Zealand.

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Attribution: Company release, story written by Bob Dey for this website.

Published 17 January 2006

Australian listed property trust Macquarie CountryWide Trust has bought another 10% of the First Washington portfolio from its partner, Regency Centres Corp.

The sale, on the same terms as the original purchase agreement, will cost CountryWide $US269.8 million and take its First Washington stake to 75%. CountryWide will finance the new purchase from asset sales & dividend reinvestment plan proceeds.

CountryWide & Regency bought a $US2.7 billion portfolio of 100 predominantly grocery-anchored shopping centres from First Washington & Calpers (the California Public Employees’ Retirement System) at the start of the year.

CountryWide chief executive Kylie Rampa explained the reweighting to historically strong US growth markets: “The portfolio’s exposure to protected, infill locations with attractive demographics and Regency’s ability to increase property income from remerchandising & redevelopment opportunities underpins enhanced net operating income forecasts.”

However, First Washington portfolio’s property income for the December 2005 year was expected to stay at the 3.9% forecast made at the original purchase time.

CountryWide bought 75% of another Regency centre today and is now 75% weighted to US assets. Its total portfolio has grown to $A4.7 billion.

Earlier stories:

19 March 2005: Underwriters make $A4.2 million loss on sale of Macquarie CountryWide shortfall

16 February 2005: Macquarie CountryWide & Regency to buy $US2.8 billion First Washington portfolio

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Attribution: Company statement, story written by Bob Dey for this website.

Published 28 December 2005

Macquarie Bank Ltd has bought an 81% interest in 2 Canadian healthcare projects from ABN AMRO Bank NV.

The projects are the $C355 million Abbotsford Regional Hospital & Cancer Centre and the $C95 million Academic Ambulatory are Centre at Vancouver General Hospital.

ABN AMRO will retain 19% and oversee the transition of overall project management responsibility to Macquarie. Both projects were conceived as public-private partnerships and on completion most of the revenue will come from the British Columbian provincial government.

Macquarie said today it would explore a range of options for its interests, including potential transfer to a Macquarie-managed fund.

In mid-September, a Macquarie income trust listed on the Toronto Stock Exchange, the Macquarie Power Income Fund, agreed to acquire a 45% indirect equity interest in Canadian aged-care provider Leisureworld Inc & associated entities for $C102 million, including offering & transaction costs.

In New Zealand, Macquarie Bank is in a joint venture with Brisbane-based FKP Property Group which has acquired 81% of Metlifecare NZ Ltd. The $3.75/share takeover offered has been extended to 31 December.

In Australia, Macquarie Bank acquired 95% of Retirement Care Australia Holdings Pty Ltd, which then bought 14 aged-care facilities in 5 states from the Salvation Army. The bank sold its 95% to Macquarie Capital Alliance Group in April for $A50.5 million. Macquarie Capital Alliance Group is a triple-stapled structure which consists of 3 entities – a public company, a managed investment scheme & a Bermuda-registered company.

In August, Retirement Care Australia bought 12 more aged-care centres from the Moran Health Care Group for $A128 million, including $A58 million of liabilities.

A fortnight later, Macquarie Capital Alliance Group bought 49% of Zig Inge Retirement Villages Group for $A100 million, leaving the founders with 51% & day-to-day management responsibility. Zig owns & manages 15 retirement villages and has development rights for 5 new villages & 5 extensions.

Earlier stories:

3 December 2005: Macquarie extends Metlife bid as Fisher Funds Management digs in

3 October 2005: Macquarie & FKP move on Metlife

18 September 2005: Macquarie secures rest of Canadian aged-care business

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Published 23 November 2005

Macquarie CountryWide Trust, the Australian listed trust which owns a number of Foodtown supermarkets in New Zealand, has done some more shopping in the US and now has its sights set on Europe.

“Europe’s financially strong & well established supermarket chains, similar lease structures and comparable property fundamentals present a favourable investment case,” chief executive Kylie Rampa said today.

She said the high level of corporate ownership in what was the world’s second-largest real estate market would facilitate portfolio acquisition opportunities. CountryWide would draw on the success of its US strategy by continuing to focus on food-based retail property and investing in assets with leading grocers and in locations with attractive demographics. The trust would also have the support of a close relationship with Macquarie Capital Partners.

The trust has $A4.6 billion of property assets, while Macquarie manages $A28 billion of property across all its brands, listed & unlisted trusts, unlisted development funds and through syndicates.

In a market update, Ms Rampa said the sales growth of anchor tenants contributing to turnover rent in Australia was up 4.6% for the year September year, and in New Zealand up 3%. She said 74% of Australian & New Zealand anchor tenants were paying turnover rent (by total rent), which had underpinned higher returns for investors.

In Australia, CountryWide has 11 development projects worth $A84.5 million under way. This activity is forecast to deliver a 9.3% development yield for the first year, while the 10-year internal rate of return is forecast to be 14.9% Capital expenditure of $A175 million is expected over the next 2-3 years.

In the US, CountryWide and its joint-venture partner, Regency Centres Inc, bought a $US2.8 billion portfolio of retail properties from Calpers (the California Public Employees’ Retirement System) & First Washington at the start of the year. Income from that portfolio would grow by 3.9% this calendar year, Ms Rampa said.

Organic same-store growth in this portfolio was up 3.3% for the 9 months to September and property income from the existing portfolio was up 2.9%. “The unique nature of this portfolio, and its exposure to markets with high barriers to entry and attractive demographics, support excellent prospects for sustainable income growth,” Ms Rampa said.

Regency president & chief operating officer Mary Lou Fiala said that company, as manager, had progressed a number of projects across the US portfolio as it worked with key tenants to re-merchandise stores and renovate targeted centres. “These projects are expected to secure lease renewals on improved terms, increasing shopper traffic, which has the potential to drive higher rental income.”

Earlier stories:

19 March 2005: Underwriters make $A4.2 million loss on sale of Macquarie CountryWide shortfall

22 February 2005: Macquarie CountryWide bumps profit up 34%

16 February 2005: Macquarie CountryWide & Regency to buy $US2.8 billion First Washington portfolio

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Published 17 November 2005

I had to borrow this one from The Sheet, Ian Rogers’ banking industry newsletter & website out of Melbourne, with a piece on Macquarie Bank’s result announcement: “Asked at yesterday’s media briefing whether the bank would call itself an investment bank or a fund manager these days, Macquarie’s managing director Allan Moss said, ‘We don’t practically think in those terms. We try not to think in terms of labels. The problem with labels is that if you start to try to define your business in terms of what other people do, you end up doing what other people have already done.

“We prefer to try and do what other people haven’t done, even though it makes the label challenging at times.'”

As for the result itself, I managed to take my eye off the returns in the banking industry for several years. Getting my eye back on banking & finance is one of the tasks for the website in 2006.

Website: The Sheet

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Published 8 October 2005

The Macquarie ProLogis group has acquired 7 North American warehouse distribution properties for $US37 million, the final tranche of a commitment made when the listed Macquarie ProLogis Income Trust launched its $A150 million Sheds (step-up hybrid exchangeable distributing securities) capital-raising in March.

The latest portfolio is expected to generate an average year one yield of 9.8%. Macquarie ProLogis said when it raised the money it would acquire $US248 million of properties with a target average initial yield of at least 7.75%.

Chief executive Geoff Lovell said the latest transaction took the group past its targets, with 22 properties bought for $US255 million at an average initial yield of 7.83%, all 100% leased.

Mr Lovell said Macquarie ProLogis had also secured $US154 million of new permanent debt (100% fixed for 7 years) at 4.7%/year, which it’s used for the latest acquisitions.

The group targets investments which require minimal ongoing capex. It now has 126 properties in 31 US & Mexican markets, of which 13% by value are in Mexico.

The listed Macquarie trust has $A1.8 billion  of assets. Its US partner, ProLogis, owns, manages or has under development a total 3.2 million m² of distribution facilities in North America, Europe & Asia.

Earlier stories:

4 July 2005: Macquarie ProLogis buys at 7.7% initial yield

4 April 2005: Macquarie ProLogis uses new securities for $US134 million buy

22 February 2005: Macquarie ProLogis raises profit 44%, introduces new hybrid security

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Published 18 September 2005

Macquarie Bank Ltd has acquired 2 UK office & business parks in a joint venture with UK-based office park developer Akeler for £150 million. The partners plan to expand the venture to £500 million in the next 2 years.

The acquisition, 85% owned by Macquarie and 15% by Akeler, will be funded by a combination of debt & equity.

Opening assets are 2 of Akeler’s flagship developments:

Reading International Business Park, an 8ha site with 34,806m² of office space, completed in 2000-01, fully leased to a global communication company for its European headquarters. The park is near Junction 11 of the M4 Motorway, west of London
Central Quay, Glasgow, 7369m² of fully leased A grade office space completed in 2002, immediately west of Glasgow city centre on the north bank of the River Clyde in the international financial services district.

Macquarie & Akeler have also established a 50:50 joint venture to manage & grow the portfolio. The head of Macquarie Bank’s property investment banking business, Matthew Banks, said: “Partnerships with best-of-breed operators like Akeler give our business a strong basis to grow in Europe and add to our global platform. The opportunity arose though our association with Macquarie Global Property Advisors, which was established last year and which has given us a broad footprint across Europe.

“The joint venture between Macquarie Property & Akeler will initially establish a wholesale fund and also explore other potential acquisitions within the office park sector. We’ll give further consideration to future options including a reit, depending on the UK legislation, which is currently under review.

“We have achieved considerable success for our investors with wholesale funds in Australia & internationally. Many major institutional investors are increasing their allocation to property and now including international property in their portfolio,” he said.

An executive director of Macquarie Bank’s property division, Graeme Wilson, said: “We will be seeking quality assets in the business park sector in the UK & Europe. Similar to our approach in Australia, quality assets with strict investment criteria will form the basis of any portfolio. Akeler’s development pipeline, as well as suitable 3rd-party assets, will be considered as further assets for the portfolio.”

Macquarie Bank & related entities manage $A24 billion of property assets through listed & unlisted property trusts, unlisted development funds & property investment syndicates. Macquarie Global Property Advisors Ltd, a joint venture with the bank, focuses on private equity real estate investment in Europe & Asia.

Akeler is a private real estate investment & development company, principally involved in developing, managing & investing in office & business parks in the UK & Europe. Formed 15 years ago, it was bought by Lend Lease Global Properties (a fund now managed by Macquarie Global Property Advisors as Global Property Fund No 1) in 2002 for £294 million from Security Capital European Realty SICAF. Akeler has 13 assets & a 370,000m² development pipeline.

Websites: Akeler

Macquarie Bank

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Published 18 September 2005

A Macquarie Bank Ltd income trust listed on the Toronto Stock Exchange, the Macquarie Power Income Fund, has entered into an agreement to acquire a 45% indirect equity interest in Canadian aged-care provider Leisureworld Inc & associated entities for $C102 million, including offering & transaction costs.

The Macquarie trust invests in North American power & infrastructure assets. It will finance its new acquisition through a public offering of subscription receipts and through the issue of exchangeable units to certain of the vendors of the Leisureworld business.

The acquisition is expected to take place around mid-October, at the same time Macquarie Bank Ltd reaches financial close for the remaining 55% of the Leisureworld business through a subsidiary.

On completion of the acquisition, Macquarie Bank may seek to transfer the economic benefits of its 55% ownership to another Macquarie managed fund within 6 months.

Leisureworld operates long-term care facilities in Ontario. Its portfolio includes 19 facilities (3147 beds), 2 retirement homes (87 beds) & an independent living facility (53 beds). The purchase also included Preferred Health Care Services, which provides professionals for long-term care homes & for private care.

Macquarie announced in March it had agreed to acquire the Leisureworld business through a subsidiary for $C528 million, including transaction costs, to be funded by a combination of debt & equity. The bank said then it was exploring long-term options for its holding in Leisureworld, including possible transfer into a Macquarie managed fund.

The completion of the transaction is subject to regulatory approvals, including from the Ontario Ministry of Health & Long-term Care. Macquarie said it expected the impact on its tier 1 capital would be negligible.

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Published: 4 July 2005

Australian listed property trust Macquarie ProLogis Trust has bought the rest of an Atlanta distribution centre plus 2 other properties for $US58.9 million at an initial 7.7% yield.

Macquarie ProLogis bought 93,640m² of the Greenwood centre, adding to the 22,300m² it bought in May. The new part is fully leased to Home Depot, which operates 1925 stores in the US, Canada & Latin America and is one of ProLogis’ top 10 customers. The rest is leased to Atkins Nutritionals.

These purchases represent the 3rd tranche of acquisitions made using proceeds from the trust’s sheds capital raising in March. The trust has bought 15 properties for $US218 million using this funding, at an average 7.5% initial yield. It expects to add another $US30 million of acquisitions by September at an average initial yield of at least 7.75%.

Macquarie ProLogis has $A1.6 billion of assets. Across all Macquarie Bank portfolios, the bank & related trusts, development funds & syndicates manage $A23 billion of property assets.

Earlier stories:

4 April 2005: Macquarie ProLogis uses new securities for $US134 million buy

22 February 2005: Macquarie ProLogis raises profit 44%, introduces new hybrid security

If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].