This article is from the Australian Property Journal archive
OVER Fifty Group has acquired a 51% in Eclipse Property Group, a privately owned property funds management company for $4.8 million in cash and shares.
Eclipse specialises in providing unlisted property investment to high-net worth investors, managing a property portfolio valued at approximately $230 million, which comprises 12 properties held across eleven trusts.
OFG’s consideration for Eclipse includes $3.8 million cash and $1 million via an issue of OFG shares. The shares will be held in escrow for a period of up to three years.
OFG has an option to acquire the remaining 49% of Eclipse, with the purchase price to be determined based on future performance.
Eclipse principal, Rowan Wall will continue as chief executive of Eclipse. Previously, Wall was a Partner of Deloitte Touche Tohmatsu, and a director of Deloitte Financial Services Limited.
OFG’s chief executive John McBain said the acquisition would compliment OFG’s existing property funds management business.
“Eclipse has an excellent track record of delivering returns to its client base of about 300 highnet worth investors,” he said.
“Following the acquisition of Bankminster in 2004 by OFG’s now wholly owned Century Funds Management, and now Eclipse, OFG will be the pre-eminent provider of direct property investment to high-net worth investors in NSW,” McBain said.
“Our investors know that we will continue to offer the same levels of outstanding service to which they are accustomed. We look forward to introducing OFG customers and shareholders to our products and in playing a broader role in the continuing growth of the group,” Wall said.
The acquisition increases OFG’s property funds under management to $930 million, and total funds under management in excess of $2.0 billion.
In July 2006, OFG bought Sydney based specialist property fund manager Century Funds Management for $42.4 million.
OFG’s share price rose 1 cent to close at $1.43.
Australian Property Journal
