This article is from the Australian Property Journal archive
ASX-listed office building and industrial property landlord Growthpoint has made a foray into funds management, acquiring Fortius Funds Management, which has $1.9 billion in third-party funds.
The $45 million purchase – which has a potential further $10 million earn-out component – takes Growthpoint’s assets under management to $7.2 billion.
Timothy Collyer, managing director of Growthpoint, said the establishment of a funds management business “has been a key strategic priority for the group”.
Growthpoint, majority owned by its Johannesburg-listed parent, intends to grow the funds management business, targeting 10 to 20% of group EBIT, over the medium term.
Fortius has an over-30-year track record of generating an average IRR of 17% per annum for its investors, a mix of institutional investors, high net worth and wholesale investors.
Fortius founder and executive director Ray Sproats will step down from the company’s board but remain as senior adviser for at least two years, while his son and CEO Sam Sproats will joining the group’s executive management team as executive director – funds management.
“Joining with Growthpoint is an ideal outcome for Fortius and our stakeholders as it provides the best path to grow with our investors’ aspirations as well as provide opportunities for our talented investment team,” Fortius management, Ray and Sam Sproats said.
