Growthpoint Properties Australia is in merger talks with Sydney-based boutique fund manager Fortius Funds Management.
Growthpoint confirmed that it was in discussions with Fortius regarding a potential transaction, however, at this stage, there was no certainty that a transaction would result.
Growthpoint, which is 65% owned by the South African group, Growthpoint Properties, controls a A$5.1bn (€3.4bn) office and industrial portfolio mostly on the Australian eastern seaboard.
Timothy Collyer, managing director of Growthpoint said the company had previously stated its interest in strategic opportunities for growth to enhance securityholder returns.
“This may include funds management acquisitions where considered appropriate,” he said,
Founded by property veteran Ray Sproats in 1991, Fortius has been a partner of global investors such as Blackrock, Heitman, PGIM Real Estate and Asian groups, including SC Capital, when these groups invest in Australia.
The manager’s skills are in value-add-to-core. It has turned around assets from offices to big box retail outlets to achieve what it sees as the optimum value of the properties.
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