Centuria Capital launches Propertylink raid

Centuria has raided the register of Propertylink, nabbing a 17pc stake that leaves it well positioned for a takeover.

Centuria Capital chief executive John McBain. (John Feder/The Australian)

Listed property funds manager Centuria Capital Group has raided the register of Propertylink Group, taking control of a 17 per cent stake in the industrial real estate and funds specialist.

The acquisitive group (CNI) took a 9.3 per cent direct interest in Propertylink (PLG) for $53 million and its listed industrial fund, Centuria Industrial REIT (CIP), has also acquired another 7.7 per cent stake in the company.

The combined stake of 17 per cent positions Centuria to make a takeover play for Propertylink, which has struggled to garner investor support since floating last year, despite growing its funds empire to about $1.6 billion and striking a series of lucrative office and industrial deals.

Centuria said it would seek to initiate discussions with Propertylink regarding “potential strategic initiatives”.

Centuria, which is led by John McBain, is advised by investment bank Moelis & Co and is likely to seek a friendly approach, as many of Propertylink’s senior directors have significant holdings and are critical to its operations.

Propertylink is an internally managed real estate group that owns and manages a diversified portfolio of logistics, business park and office properties.

It has a direct $695m portfolio and manages about $1.2bn in industrial and office assets across nine external funds for global institutional investors.

Industrial property is one of the hottest asset classes at the moment and Centuria has been looking to bulk up its own $4bn property funds empire.

It earlier this year finalised a deal to buy the bulk of 360 Capital’s property funds and joining with Propertylink would also give it greater access to institutional clients.

Propertylink shares were 6c higher at 92.5c in early morning trade.