360 Capital Group: ASX Spotlight Series 2016, New York


360 Capital Group Limited (ASX:TGP) Managing Director, Tony Pitt discusses the company’s focus and growth opportunities at the ASX Spotlight Series, 2016 in New York
360 Capital Group Limited (ASX:TGP), we set it up in 2006 as a real estate investor and fund manager, focused on Australian real estate. A very simple philosophy of investing purely in Australia, we don’t do residential. We don’t do development and just focus on industrial office and retail sectors. The Group itself now has three listed REITs, six unlisted Funds and about $1.4 billion under management, and a market cap of about $240 million.
The focus of the company is really looking at real estate, well leased, well-located real estate. Fairly simple philosophy, we are real estate people at heart. And we look to generate our returns from about 160 tenants, to provide regular income to our 12,000 investors.
There’re quite a few competitive forces at the moment. We’re seeing a lot of overseas capital coming into Australia, especially from Asia, that’s making smaller REITs like ourselves uncompetitive in the direct market. As a result, you’ve seen us recently do some M&A activity. We do expect that trend to continue. And we do expect to see consolidation in the sector, as a result of that. So quite a few competitive forces there. I suppose the upside is we’ve got interest rates continuing to come down, and that is likely to drive prices further.
For our business, the growth opportunity really is this overseas growth capital that’s coming in. Historically, we’ve been managing our own funds and the real estate that we have, through the listed vehicles. We’ve had a lot of approaches from people wanting to partner with ourselves, looking for the Australian property expertise. And we’re now looking at investigating those growth opportunities for the Group.