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Centuria increases funds under management by 63%
This mega-acquisition will see Centuria become one of the largest ASX-listed real estate fund managers.
Samantha Woodhill
Firms: Herbert Smith Freehills, HWL Ebsworth (Centuria Capital Group); Clayton Utz (360 Capital Group); Baker & McKenzie (underwriters)
Value: $217 million acquisition; $150 million equity raising
Area: M&A
Key Players: Leading the Herbert Smith Freehills advisory team in relation to the majority acquisition of 360 Capital Group’s real estate management platform was partner Fiona Smedley, who was assisted by senior associate Yorick Ng. HWL partners James Lonie and Rowan McDonald also acted for Centuria on aspects of the acquisition, assisted by solicitor Amy Campbell.
Philippa Stone led the Herbert Smith Freehills team in relation to Centuria’s capital raising, assisted by solicitor Ben Robinson.
Deal significance: The acquisition makes Centuria one of the largest ASX-listed pure-play Australian real estate fund managers, representing a 63 per cent increase in funds under management, from $2.2 billion to $3.6 billion.
“The capital raising is innovative, with all elements, including the rights issue, conditional on approvals which are also conditions to the acquisition,” Ms Stone told Lawyers Weekly.
“This has enabled Centuria to link the funding and the acquisition effectively.”
Subject to 360 Capital Group’s (ASX: TGP) security-holder and 360 Capital Office Fund’s (ASX: TOF) unit-holder approvals, as well as Centuria security-holder approval under the conditional placement, Centuria will use proceeds from the Moelis Australia underwritten equity raising to partially fund the acquisition.
“We would like to congratulate Centuria on the acquisition and wish them all the best for this next chapter,” Ms Stone said.
“The M&A market has strengthened significantly in recent months and is looking healthy for the 12 months ahead.”
