This article is from the Australian Property Journal archive
THE Centuria Metropolitan REIT (CMA) has entered into a merger agreement with Centuria Urban REIT (CUA) to form a $417 million property trust.
Under the proposal, investors will receive 0.88 CMR units for every 1 CUA unit and $0.23 cash payment for every 1 CUA unit.
Centuria Property Funds independent director and independent board committee chairman Matthew Hardy said the merger is consistent with CMA’s strategy to invest in metropolitan office markets in Australia and combines two highly complementary property portfolios.
In approved, CMA’s investment property portfolio will increase by 54% to over $602 million with an estimated pro forma market capitalisation of $417 million, up from $277 million.
“This transaction is accretive to CMA’s FY17 distributable earnings and will create one of the largest ASX listed REITS focused on the metropolitan office assets in Australia.
“We also believe the merger has significant benefits for CUA unitholders as it significantly increases their exposure to a quality portfolio of office assets, decreases the ongoing management fee, enhances the balance sheet and increases scale and liquidity.” Hardy said.
Australian Property Journal
