Centuria Capital Group’s announcement while delivering results last week that it has aspirations to grow its funds under management by 50 per cent in the near term has been taken as a signal in the market that it will be a serious contender for Blackstone’s Milestone Logistics Group.
The ambitious listed real estate funds manager is run by John McBain and Jason Huljich and on Thursday reported a 16 per cent lift in its assets under management to $10.2bn for the six months to December and signalled that it had a dual strategy of corporate acquisitions as well as investment in direct real estate, with plans to increase assets under management by 50 per cent in the near term.
Like a number of companies in the real estate space, Centuria has been a major beneficiary of booming conditions for logistics properties with online shopping soaring amid the global pandemic, but has seen those results offset by challenges in other more hard-hit real estate sectors, which was reflected in the fall of its half-year statutory net profit to $42.7m from $77.9m.
Blackstone is running a dual-track process for its $3.5bn portfolio of 45 Australian industrial properties now named Milestone Logistics Group, and so far, more than 50 prospective buyers are understood to have entered the data room.
It is not out of the question that a buyer offers more than $4bn for the portfolio that is expected to be fiercely fought over by other listed groups like Dexus Property Group, GPT Group, Charter Hall and major international players.
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