This article is from the Australian Property Journal archive
PROPERTY management group Australian Institute of Property Management has expanded its presence in property management sector with the $15 million acquisition of the TEYS Group.
The TEYS group has $162 million in funds under management and provides services to 13 property trusts; as well the role of investment manager for three trusts which target retail investors including Heritage National Mortgage Trust ($47 million FUM); Settlers Lifestyle Property Trust ($9 million FUM); and the recently launched TEYS Strata Mortgage Trust ($2.3 million FUM).
In addition, the company has approximately 35,000 strata lots and 1,200 residential properties under management.
Based on current management budgets, the TEYS Group anticipates that it will generate revenue of approximately $5.5 million and EBITDA of approximately $2.5 million for the 2007 financial year.
The purchase price for the TEYS Group is $14.95 million comprising $7.476 million cash and 299,040,320 AIPM shares at 2.5 cents per share.
The TEYS Group will be acquired free of debt and TEYS managing director Michael Teys and his nominees will be granted 50,000,000 options to acquire ordinary shares in AIPM at an exercise price of 3.0 cents per option exercisable on or before October 18, 2008.
On completion of the acquisition, Michael Teys and Theo Ruygrok, the managing director and chief financial officer of the TEYS Group, will assume the same role at AIPM respectively. Their appointments will be for a five year term from completion of the transaction.
AIPM chairman Bruce Burrell said the acquisition of the TEYS Group represents a significant and exciting opportunity for AIPM to combine with another growing company in the property management sector.
“Not only will TEYS extend AIPM’s sizeable strata management footprint but it will provide the combined group with a presence in another attractive area of property management, namely the provision of property funds management services. A number of potential synergies between the two companies have also been identified.” he added.
“The concept of living in strata and community titled property is the most significant change in fifty years to the way we live as a society. With the ageing of our population, decreased housing affordability and environmental issues, this form of living is set to continue its rapid growth and is deserving of more sophisticated methods of management,” Teys said.
“In particular, the expertise of the TEYS Group as property funds managers in the residential, mixed use and retirement village communities will add new management opportunities for the combined group complimenting the organic growth of the current AIPM strata and residential property management operations,” Teys concluded.
Australian Property Journal
