This article is from the Australian Property Journal archive
CENTURIA Capital has secured a strong foothold in New Zealand with the acquisition of real estate fund manager Augusta Capital for NZ$180 million (approx A$174 million).
Augusta has NZ$2.0 billion (A$1.9 billion) in assets under management across a range of listed, unlisted and private funds.
Centuria chairman Garry Charny said the acquisition would result in the integration of one of New Zealand’s leading real estate funds managers into Centuria’s established platform and will increase Centuria’s AUM by 26% or A$1.9 billion to A$9.2 billion.
Centuria’s market capitalisation is also expected to increase from $1,082 million to over $1,183 million which enhances the potential for ASX 200 inclusion.
“The transaction is expected to deliver immediate scale for Centuria across the New Zealand market, with a concentration towards Auckland, a resilient and globally recognised real estate market. Upon implementation, Centuria would become one of the leading funds management platforms in the Australasian region,”
“The Centuria board has been considering a New Zealand platform acquisition for some time. Our engagement with the Augusta independent board committee, chaired by Augusta chairman Paul Duffy and the company’s management, has been professional and of a high calibre. In addition, the Augusta due diligence process has been greatly aided by the high quality of information provided, consistent with the business as a whole. The Centuria board unanimously supports the takeover and is convinced of the strong compatibility between the two platforms.” Charny said.
Centuria’s joint CEOs John McBain and Jason Huljich added the two groups are extremely compatible.
“We are attracted to Augusta’s leading position in New Zealand, its strong distribution platform and its fund origination capability. We are delighted that the Augusta executives will join the Centuria group and we will work closely together to continue to grow the Centuria/Augusta funds management platform in New Zealand.
“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,” they said.
Augusta shareholders will be able to elect to receive either up to NZ$2.00 in cash or Centuria scrip, and will receive 0.807 Centuria securities in consideration for each Augusta share held.
The offer price of NZ$2.00 represents a 19.8% premium to the closing price of Augusta shares of NZ$1.67 on 28 January 2020.
Augusta’s founders and significant shareholders, Mark Francis and Bryce Barnett will continue to lead the Augusta funds management platform as key executives of the Centuria group.
