The $217 million transaction will see the firm acquire 360 Capital Investment Management, which Centuria group chief executive officer John McBain said was consistent with the firm’s “strategy of growing the property funds platform, growing recurring revenues and an increased level of co-investment in managed funds”.
“The 360 Capital Group property platform is complementary with Centuria’s platform as its funds under management are largely listed REITs, while Centuria’s existing property business is weighted towards unlisted property funds,” he said.
“On completion, Centuria will have substantially greater scale positioning it for growth.”
The transaction will see Centuria acquire 360 Capital Investment Management’s 15.6 per cent stake in the 360 Capital Industrial Fund and its 19.99 per cent stake in the 360 Capital Office fund, which will be renamed Centuria Industrial REIT and Centuria Urban REIT respectively, the company said.
Centuria has additionally entered a two year put and call option arrangement for 360 Capital Group’s equity interests in four unlisted funds.
“Centuria has a long term track record of delivering strong shareholder and investor returns,” Mr McBain said.
“This transformational transaction will build on this success by delivering new growth opportunities and introducing a broader investor base to the Centuria platform.”
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