Centuria makes first offshore acquisition with NZ firm
Centuria Capital has acquired a 19% stake in New Zealand real estate funds business Augusta Capital, the firm’s first offshore acquisition.
Augusta, which had $1.7 billion in assets under management, was undertaking a $45 million equity raising to strengthen its balance sheet and provide capital for new opportunities. This consisted of a $12.4 million placement and a $32.6 million entitlement offer.
Following the placement and the institutional component of the entitlement offer, Centuria would acquire a 19% interest with the option to increase this to 24.9% in the future.
Centuria’s maximum potential commitment to the offer was $22.3 million, funded by its cash reserves.
John McBain, Centuria’s joint chief executive, said the firm had become interested in Augusta as it looked to develop a presence in New Zealand and had confidence in its mid-to-long term outlook.
“We believe Centuria’s investment in Augusta represents a unique opportunity to develop a strong presence in the New Zealand funds management arena. We remain attracted to Augusta’s leading position in New Zealand, its strong distribution platform and its fund origination capability,” he said.
AUTHOR
Laura Dew
Recommended for you
T. Rowe Price believes Australian growth is successfully managing to shrug off consumer weakness, but the firm’s multi-asset team is not yet positive enough to increase its underweight position.
Iress has issued an update denying the validity of “certain statements” made by an alleged threat actor, following a cyber incident last weekend.
The latest budget papers have outlined a $10 million provision for ASIC greenwashing enforcement activity as well as funds for a sustainable labelling regime to be partially met by industry levies.
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.
