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
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
