The sharp increase in fees earned by the managers of Macquarie Goodman Property Trust were well deserved as they had been earned by higher profit, says a major fund manager.
Tuesday, November 15th 2005, 12:26AM
by The Landlord
Simon Botherway, of Brook Asset Management, said yesterday that investors in the trust would be petty if they complained about paying its manager a $2.3 million half-year fee.
Macquarie's manager is ASX-listed, Sydney-based Macquarie Goodman Group, of which the Goodman family - headed by Kiwi Sir Pat Goodman - owns 8 per cent. The group also owns 30 per cent of the trust.
Macquarie said this week that it had made $13.84 million net profit, up on the $10.12 million it made in the half-year to September last year and credited its success to an aggressive development and real estate acquisition programme.
Last year, the trust's manager earned $760,000 for the same six months, although it had only $230 million worth of property then.
