| Media Release | Thursday December 14, 2000 |
Macquarie Bank today announced that it has agreed to form a global real estate investment banking partnership between Macquarie Property and Security Capital Group Incorporated, a United States based real estate operating and investment management company.
The new company, Macquarie Capital Partners LLC, will, subject to US regulatory approval, come into existence by December 31, 2000, with a total staff of 27.
It will combine the global relationships, financial and intellectual resources of Macquarie Property with the established US, European and Middle Eastern real estate banking business of Security Capital Markets Group , a Security Capital Group subsidiary, to create a formidable international real estate investment banking business.
Under the partnership agreement, Macquarie Property, along with Security Capital and management, will invest in the new company, which will be rebranded Macquarie Capital Partners with the logo featuring Macquarie's 'Holey Dollar'.
Initial services will include creating and placing single and multi-investor funds in Europe and the United States; structuring and executing private and public equity offerings; M&A and financial advisory; and debt structuring and placement.
The partnership forms part of Macquarie Bank's strategy of selective expansion into niche international markets in which it sees an opportunity to add value.
Head of Macquarie Property, Stephen Girdis, said increasing globalisation and deregulation of the real estate industry was creating significant investment banking opportunities which Macquarie Capital Partners would be ideally positioned to access.
"The world is changing very quickly and there is a growing demand for the type of boutique property investment banking operation we are creating with Macquarie Capital Partners - smart, mobile and international," Mr Girdis said.
"It will be a service-oriented company featuring a senior executive team with extensive experience across all the key areas of real estate investment banking.
"Our initial focus will be on the US, Europe and the Middle East with a phased entry into the Asian real estate capital markets."
Mr Girdis added that Macquarie Capital Partners would operate independently of, but co-operatively with, Macquarie Property's local property investment banking operation. Benefits for Macquarie include:
Head of Macquarie Property Investment Management, Mark Baillie, said:
"One of the features that attracted Macquarie Property to enter into a partnership with Security Capital Group was the high level of compatibility between our respective real estate funds management businesses," Mr Baillie said.
"We share a common philosophy which I believe will lead to further opportunities."
Macquarie Capital Partners will have its head office in Chicago and be led by Chief Executive Officer Don Suter, currently Managing Director of the Security Capital Markets Group, which has raised in excess of $US11 billion of equity capital in a variety of public and private transactions in the real estate industry over the past 10 years.
Mr Suter said Security Capital Markets Group had been seeking a partnership to broaden its business, which has historically focused on the provision of real estate investment banking services to the Security Capital Group companies. "We had been looking for a partner that would help take us to the next level - and it quickly became obvious Macquarie was a perfect fit," Mr Suter said. He added: "By expanding beyond the Security Capital system, Macquarie Capital Partners will have greater flexibility to operate in a global arena, pursue third-party business and offer capital sources a broader range of investment alternatives."
Security Capital Group is one of the world's leading real estate operating and investment management companies and is listed on the New York Stock Exchange (ticker: SCZ). Security Capital Group has majority or significant interests in 16 real estate companies, including a number of sector specific Real Estate Investment Trusts (REITs), these companies own in excess of US$26 billion of real estate. It takes a proactive ownership role in high-growth, leadership real estate operating companies (five public and eleven private) across the US and Europe, including CarrAmerica, Storage USA, Regency Realty Corporation, and ProLogis. Macquarie Property has a similar funds management philosophy with four sector-specific property trusts listed on the Australian Stock Exchange.
Macquarie Bank is Australia's leading full-service investment bank with 22 offices in 14 countries outside Australia.
In the half year to September 30, 2000, 31 per cent of Macquarie Bank's revenue was generated offshore.
Further information:
Stephen Girdis, Head of Macquarie Property: (02) 8232-3589, (0414) 570-865
Mark Baillie, Head of Macquarie Property Investment Management: (02) 8232-3408, (0416) 126-986
Martin Kelly, Macquarie Property Public Relations: (0414) 774-978.
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