Centuria acquires majority 360 Capital Group real estate stake
Centuria Capital Group has announced it has agreed to acquire the majority of 360 Capital Group's real estate management platform at $217 million.
The transaction was confirmed by Centuria Group chief executive, John McBain, who said it would transition the company to the next stage of growth and was consistent with its strategy of growing the property funds platform, growing recurring revenues and an increased level of co-investment in managed funds.
The company said the transaction involved Centuria acquiring 360 Capital Investment Management Limited, the manager of 360 Capital Industrial Fund, 360 Capital Office Fund and four unlisted real estate funds for $91.5 million, plus $10 million in cash in support of CIML's Australian financial services licence (AFSL) and net assets requirements.
It said the transaction included the acquisition of TGP's co-investment stakes in TIX (15.6 per cent) and TOF (19.99 per cent) for $115.8 million and that Centuria had also entered into a two year put and call option arrangement over TGP's equity interests in four unlisted funds in the sum of $59 million.
Centuria's subsidiary, Centuria Property Funds Limited (CPFL), in its capacity as the responsible entity of Centuria Metropolitan REIT (CMA), announced it would acquire a further 8.8 per cent of TOF from TGP, conditional on TOF unitholder approval.
According to the announcement, the transaction made Centuria one of the largest listed pure-play Australian real estate fund managers, with property FUM increasing to in excess of $2.8 billion ($3.6 billion in total FUM including its existing investment bond business).
"This transaction is transformational for Centuria and consistent with the group's strategy to increase the scale of its property funds management platform, increase recurring revenues and expand access to distribution channels for third party capital," McBain said.
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
