Centuria Capital Group has increased its interest in a real estate debt company Centuria Bass Credit from 50% to 80% for more than A$57m (€34.7m).
The incremental stake purchase was funded with A$28.5m of cash and A$28.5m in Centuria Capital’s scrip, issued at A$1.775 per security.
John McBain, Centuria Capital Group joint CEO, said the transaction followed an ongoing review of opportunities to “meaningfully scale Centuria’s platform”. Centuria manages 18 property and agricultural funds, valued at A$21bn.
McBain said: “Expanding our stake in Centuria Bass Credit increases alignment and earnings-share to a market leading real estate finance business, capable of generating healthy profit accretion for Centuria’s future earnings profile.
“We retain high conviction over this asset class and are focused on broadening the range of real estate debt offerings to our investor network. Centuria’s investor network have developed a rapidly increasing appetite for the relatively competitive returns and short duration these funds exhibit.”
When Centuria Bass was acquired three years ago, its assets under management was A$300m, which has grown to A$1.7bn. Centuria Bass generated an interim operating profit of A $7.2m for Centuria Capital as at 31 December 2023, based on the 50% interest held at that time.
McBain said Centuria Bass was positioned to increase its non-bank lending market share with new real estate finance investment products that complemented Centuria’s distribution network.
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