Centuria makes first offshore acquisition with NZ firm
Centuria Capital has acquired a 19% stake in New Zealand real estate funds business Augusta Capital, the firm’s first offshore acquisition.
Augusta, which had $1.7 billion in assets under management, was undertaking a $45 million equity raising to strengthen its balance sheet and provide capital for new opportunities. This consisted of a $12.4 million placement and a $32.6 million entitlement offer.
Following the placement and the institutional component of the entitlement offer, Centuria would acquire a 19% interest with the option to increase this to 24.9% in the future.
Centuria’s maximum potential commitment to the offer was $22.3 million, funded by its cash reserves.
John McBain, Centuria’s joint chief executive, said the firm had become interested in Augusta as it looked to develop a presence in New Zealand and had confidence in its mid-to-long term outlook.
“We believe Centuria’s investment in Augusta represents a unique opportunity to develop a strong presence in the New Zealand funds management arena. We remain attracted to Augusta’s leading position in New Zealand, its strong distribution platform and its fund origination capability,” he said.
AUTHOR
Laura Dew
Recommended for you
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
UK-based fund manager Royal London Asset Management has appointed a Sydney-based head of regional sales as it embarks on a multiyear plan to expand its presence internationally.
