This article is from the Australian Property Journal archive
CENTURIA has increased its interest in Centuria Bass to 80% for a consideration of $57 million, after ongoing strength from the real estate finance business.
Centuria Capital Group (ASX: CNI) upped its stake in Centuria Bass Credit Pty Ltd by 30%, funded by $28.5 million of cash and $28.5 million in CNI scrip, with the scrip issued at $1.775 per security comprising a total issuance of 16,056,337 CNI securities.
Centuria initially purchased a 50% interest back in 2023, with the combined acquisition costing the group $81 million, reflecting an approximate earnings multiple of 4 times based on annualised earnings to date in FY24.
“Today’s announcement follows an ongoing review of opportunities to meaningfully scale Centuria’s platform,” said John McBain, joint CEO at Centuria Capital Group.
“Expanding our stake in Centuria Bass Credit increases alignment and earnings-share to a market leading real estate finance business, capable of generating healthy profit accretion for Centuria’s future earnings profile”.
Since acquisition, Centuria Bass AUM has grown from $0.3 billion to $1.7 billion, with an interim operating profit of $7.2 million for CNI as at 31 December 2023 based on the 50% interest held at that time.
CNI has also reaffirmed its FY24 OEPS guidance of 11.5-12.0cps and FY24 DPS guidance of 10.0cps
“We retain high conviction over this asset class and are focused on broadening the range of real estate debt offerings to our investor network,” added McBain.
“Centuria’s investor network have developed a rapidly increasing appetite for the relatively competitive returns and short duration these funds exhibit.”
Centuria Bass has made several key appointments so far in 2024, in Tom O’Donnell, Alex Hayde, Lachlan Tracey, John Kalaf and Peter Callanan.
