Property funds manager acquired

OFM Investment Group (OFM) has acquired privately owned funds management company Century Funds Management.

OFM paid $26.6 million in cash and $15.6 million in OFM shares to acquire the 100 per cent interest.

Century Funds Management is a property funds management specialist with approximately $440 million under management.

According to Lonsec research, the company delivered an average total return of 16.8 per cent per annum between January 2000 and December 2005, compared with 11.5 per cent per annum by the Mercer Unlisted Index benchmark over the same period.

“The acquisition of Century Funds Management fits perfectly within our corporate strategy — property is a key asset class in delivering both income and capital growth to our core over-50s market,” OFM managing director Chris Martin said.

“Century’s total return property investment philosophy, its excellence in investment performance and products are an ideal addition to our product portfolio.

“In addition, Century Funds Management and OFM share a culture of highly personalised, investor-focused attention.

“Century’s expertise and underlying profitability will also benefit OFM by facilitating a shift away from one-off property transaction revenues to generation of a sustained earnings stream from property-related activities.”

According to OFM, other benefits of the acquisition include strategic positioning in the fast-growing property funds management sector and the inclusion of a new, high-net-worth client base.