Macquarie CountyWide Trust eyes supermarket opportunities

By Chris Hutching

Friday 28th June 2002

Macquarie CountyWide Trust is anticipating further sales growth and opportunities for more acquisitions following the convoluted $690 million takeover of Woolworth's by Foodland Associated (FAL).

Australia-based Macquarie owns many of the properties leased by FAL subsidiary Progressive Enterprises, which has been disposing of its supermarket properties in leaseback deals. Last year Macquarie acquired 13 Progressive supermarket properties this way and another four properties for development. Macquarie mainly targets provincial centres.

Turnover growth of these properties was ahead of forecast, up 9.11% for the March quarter, reflecting strong consumer spending.

A Macquarie spokesman said the trust was working on more deals with Progressive in New Zealand.

The takeover of 83 Woolworths stores by FAL would open up even more purchase and leaseback opportunities in this country for the trust, that has about 10% of its assets here. Most of its properties are in Australia but it has also been making inroads into the US over the past couple of years.

In New Zealand, the supermarkets owned via FAL and Progressive account for about 45% of supermarket share.

But the takeover of Woolworths by FAL has been the subject of numerous legal challenges by rival Foodstuffs, which is now seeking a judicial review of the Overseas Investment Commission decision that allowed the sale to proceed. A hearing was scheduled for next month.

Meanwhile, Macquarie CountyWide Trust has announced its forecast dividend of 6.7c a share for the year ending June, as required under Australian Stock Exchange rules. The trust had total assets of $739 million and a gearing ratio of 30% at December 2001.

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