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.