Novion on-track ahead of Federation merger
Novion Property Group is "on track to achieve" its 2015 financial year targets ahead of its proposed merger with Federation Centres.
The listed Australian Real Estate Investment Trust (A-REIT) reported a rise in net profit of 119 per cent to $412.7 million for the first half of 2015.
Novion chief executive, Angus McNaughton, said "It has been another successful period for Novion featuring strong valuation gains, increasing duration and diversity of the debt profile, commencing a major redevelopment project and once again being acknowledged for one of the strongest sustainability programs amongst retail REITs globally".
"We are well on track to achieve our FY15 objectives," he said.
"Through the second half of FY15, we will be focused on the successful progression and execution of the proposed merger with Federation."
Meanwhile, Novion chairman, Richard Haddock, described the merger as a "compelling opportunity for Novion and Federation security holders to be part of the creation of a group that will be a top 30 company listed on the Australian Securities Exchange."
The merger, which remains subject to shareholder approval will form the third largest A-REIT, with more than $22 billion in assets under management.
The merged company will be Australia's number one owner/manager of sub-regional and outlet centres, with more than three million square metres of lettable space, and 9500 retail tenancies.
As part of the proposed deal, Novion securities holders will receive 0.8225 Federation shares, valuing their current holdings at $2.55 per unit, giving the merger entity a market capitalisation of more than $11 billion.
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