Macquarie Global Property Advisors (MGPA) announced that Akeler, a major investment in an MGPA advised fund, has entered into a joint venture with Macquarie Bank’s property and banking arm to create a focused real estate asset management company and an office and business park fund.

With over A$94 billion of assets under management, Macquarie Bank is Australia’s largest investment bank, and its property business is focused on expanding its European real estate portfolio and in particular to delivering products that can be floated in the growing REIT sectors of global capital markets. This, coupled with its recent impressive growth, fits with MGPA’s business strategy for Akeler. MGPA’s Global Fund I purchased Akeler, an International office and business park developer, in August 2002 with a view to moving the Company’s established brand as a leading developer and trader - to a manager delivering its skills and products to long-term owners and investors as an asset manager and fund manager via its proven development management skills.

The goal of the office and business park fund is to provide investors with superior income and capital growth from a diversified portfolio of master-planned business and office park assets. The assets will be of superior physical specification and will be retained in single ownership to enhance leasing flexibility to occupiers. The Fund will initially be seeded with two of Akeler’s flagship schemes, Reading International Business Park and Central Quay in Glasgow, giving it an initial value of £160 million. Akeler have retained a 15% co-investment.

Akeler and Macquarie Bank aim to grow the Fund to an asset value of at least half a billion pounds over the next two years. Akeler’s pipeline developments will be considered as further assets for the warehouse and the Fund will be looking to add critical mass through the acquisition of suitable third party assets.

Akeler and Macquarie Bank will also consider opening the Fund to new investors in due course, and may also reconsider its structure in light of any new REIT legislation introduced in the UK.

MGPA Chief Operating Officer, Andrew Wood said, “We are pleased that our strategic relationship with Macquarie Bank has allowed us to develop a product that creates value for investors.”

“Further, this product is a major step forward for Akeler, representing a key element of the strategy that we have been working on with Management to optimise its capital structure and leverage its real estate skills to develop a service related revenue stream for the business,” said Mr Wood.

Head of Macquarie Property’s advisory business, Graeme Wilson said, “Strong partnerships with best of breed operators, like Akeler, gives our business a strong basis to grow in Europe and add to our global platform.”

Commenting on the joint venture, James Cole, Chief Executive Officer of Akeler said, “Akeler recognises the need to form a partnership with a strong global fund management and capital source, and Macquarie Bank fits this need perfectly.”

“We are now evolving into a true property business, no longer reliant solely on periodic development profits, but a more robust and valuable entity based on a solid platform with diverse income streams,” said Mr Cole.