Centuria Capital Group will make a takeover offer to acquire New Zealand real estate fund management platform Augusta Capital Limited for $174 million.
An announcement to the Australian Securities Exchange (ASX) said the two parties had entered into a Bid Implementation Agreement. The transaction would deliver immediate scale for Centuria across the New Zealand market, with a concentration towards Auckland.
It said Centuria’s assets under management would increase 26% to $9.2 billion.
It noted that Augusta shareholders would be able to elect to receive either up to NZ$2.00 ($1.94) in either cash or Centuria scrip via a ‘mix and match’ facility.
Centuria join chief executives, John McBain and Jason Huljich, said: “We are attracted to Augusta’s leading position in New Zealand, its strong distribution platform and its fund origination capability”.
“Centuria and Augusta have proven themselves as leading real estate fund managers in their respective countries and by combining them we see an opportunity to significantly grow the enlarged group in Australasia. Crucially, both teams have similar cultures and investment philosophies which will continue to underpin this growth strategy.”
