MA Financial has confirmed media speculation that it is in talks to take over Australian property and fund management company IP Generation, which manages A$2bn (€1.1bn) in retail and other commercial assets.
IP Generation, established seven years ago, has built out a portfolio of 16 assets, including a prime shopping mall in the centre of Melbourne central business district and properties in regional Australia, some of which are held in its NSW Essential Retail Trust.
IP Generation was founded by its chief executive, Chris Lock, who is the largest shareholder with 42.5% stake in the company and the balance is held by three other shareholders.
MA Financial said: “Should an acquisition proceed, it would not involve an equity raising,” said MA Financial, adding no binding documentation had been entered into and there was no certainty that these discussions would result in a transaction.”
The suitor plans to bolt the business if acquired, to its asset management arm.
MA Financial is seeking to expand its asset under management aiming for a 50% growth from A$10.3bn to A$15bn by next year and it has a longstanding relationship with IP Generation having provided property management services to several of its assets since 2019.
To read the latest IPE Real Assets magazine click here.
