Macquarie Group Sells Large Portion of Real Estate Assets to Charter Hall Group

Large Australian investment firm Macquarie Group Ltd. sold the majority of its real-estate management business to Charter Hall Group for approximately $267 million.

The major purpose for divesting in the division is in order to distance itself from the listed funds model which has largely fell out of favor in light of the economic crisis.

Macquarie has continued to get out of listed funds that entail businesses like media, toll-roads, theme parks and airports, all of which have suffered as people stopped traveling as much and stayed closer to home.

Its newest strategy is to acquire more niche advisory businesses based in Europe and the United States which will transform them into a worldwide advisory and investment trading business.

As a result of the deal between Macquarie and Charter Hall, both companies will benefit from it as earnings for both will get a nice upward move from it. Charter Hall estimates their earnings will increase by 18 percent by the middle of 2011, while Macquarie states they should enjoy an additional net profit for their fiscal 2010 of close to A$30 million.