InvestorDaily reported in April this year that the boutique listed real estate security specialist had been acquired by real estate funds manager Folkestone.
Maxim Asset Management has also changed the names of the two funds it manages, the Maxim Property Securities Fund and the Maxim Income Fund, to the Folkestone Maxim A-REIT Securities Fund and the Folkestone Maxim Income Fund.
Folkestone Maxim Asset Management managing director Winston Sammut said the name reflects the full integration of Maxim Asset Management into Folkestone.
The fees for the two funds have also been adjusted, according to Folkestone.
The total management cost is now 0.95 per cent per annum for the initial $50 million in assets in the fund and 0.85 per cent per annum for the gross asset value over the $50 million.
The previous fees were 1.5 per cent per annum for the first $10 million in net asset value in the fund and 1.4 per cent of the net asset value above $10 million.
Mr Sammut said while the A-REIT sector may be considered overvalued, it is expected to remain buoyant for some time to come, with cash rates remaining at historically low levels and investors continuing to chase yield.
“The A-REIT sector remains a buzz with corporate activity – Stockland recently announced a bid for Australand, which has seen Frasers Centrepoint, a Singapore listed REIT, come in over the top and offer a higher, all cash bid for Australand,” said Mr Sammut.
“We expect corporate activity will continue to be a theme for the remainder of 2014,” he said.
Folkestone head of funds management Adrian Harrington said he expects “Fraser Centrepoint will not be the last Asian-based group to make a corporate play for either an A-REIT or an Australian real estate funds management platform”.
