Macquarie flags global property IPO

Macquarie Bank has signed an American fund manager that invests in global property securities to the fifth instalment of its Professional Series.

The European Investors’ Global Property Trust, which will be listed on the Australian Stock Exchange (ASX) next week, provides investors with exposure to property companies and trusts listed on stock exchanges in the United States, Europe and Asia.

Money in the trust will be managed by New York-based wholesale fund manager European Investors Inc.

“While Australian property continues to perform strongly, many investors see the cheaper market prices, far broader investment universe, and access to growth economies, such as in Asia, as being highly attractive rationale for a shift offshore,” said Macquarie Professional Series head of distribution Peter Shepherd.

According to Macquarie, the trust will offer Australian investors their first chance to access an ASX listed fund with access to global property securities.

The other four managers signed to the Professional Series include Australian boutique manager Concord Capital, Edinburgh-based manager Walter Scott, US-based Morgan Stanley, and London-based futures adviser Winton Capital.

Macquarie expects the series to include partnership arrangements with between eight and 10 external managers, and indicated earlier in the year it will include one more Australian boutique manager.

News of the most recent deal came as shares in Macquarie Bank sank by around seven per cent after chief executive Ian Moss predicted its net profit would only be “slightly up” on last year’s record $823 million profit.