Centuria Capital assets near $10bn after Augusta Capital takeover
Centuria’s takeover of New Zealand-based Augusta extends its rapid expansion streak.
The listed Centuria Capital Group is on the road to managing a $10bn property empire after striking a deal to take over one of New Zealand’s largest listed real estate funds management platforms, Augusta Capital Limited, for $NZ180m ($174m).
The deal will result in the aggressive platform boosting assets under management by $1.9bn to $9.2bn, a 26 per cent lift for the already rapidly expanding platform that has grown its listed office and industrial funds.
Augusta shareholders will be offered $NZ2 a share in either cash or Centuria scrip via a “mix and match” facility. The deal is likely to proceed as Augusta shareholders — with 36.2 per cent of company, including the two founders and key executives — have entered into pre-bid lock-up agreements with Centuria.
Centuria will fund the transaction from existing cash reserves, scrip and the net proceeds of a $60m equity raising, handled by Moelis and UBS, at $2.34 per Centuria security.
Augusta is one of NZ’s leading listed real estate funds management businesses, managing $NZ2bn in assets across a range of listed, unlisted and private funds.
The deal would result in the integration of one of NZ’s leading real estate funds managers into Centuria’s established platform.
It is expected to deliver immediate scale for Centuria across NZ, with a concentration towards Auckland.
Centuria would be elevated to one of the leading funds management platforms in the Australasian region and ties in with its specialty in the office and industrial markets. It also picks up an exposure to the large-format retail market and NZ’s tourism sector.
Augusta shareholders who elect to receive Centuria scrip will receive 0.807 Centuria shares for each Augusta share held.
The offer price is a 19.8 per cent premium to the closing price of Augusta shares of $NZ1.67. Augusta’s founders and significant shareholders Mark Francis (17.2 per cent) and Bryce Barnett (6.1 per cent) have entered into pre-bid lock-up agreements to accept the offer for their shares.
The pair will continue to lead the Augusta platform as key executives of the Centuria group and have entered into three-year employment contracts. Augusta shareholders with a further 12.9 per cent have entered into lock-up agreements.
Centuria’s joint chief executives, John McBain and Jason Huljich, said the acquisition of Augusta was consistent with their strategy and the two groups were extremely compatible.
“We are attracted to Augusta’s leading position in New Zealand, its strong distribution platform and its fund origination capability,” they said.
Centuria’s market capitalisation will increase from $1.08bn to more than $1.18bn, enhancing the potential for ASX 200 inclusion.
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