ASX-listed real estate investment manager Centuria Capital has agreed to pick a stake of up to 24.99% in New Zealand peer Augusta Capital, marking its first offshore purchase.
The New Zealand real estate funds manager manages NZD1.8bn ($1.09bn) in assets across listed, unlisted and private funds.
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Centuria will pick an initial 19% holding in Augusta with the provision to raise the interest to 24.99% via Entitlement Offer Sub Underwriting.
Commenting on the deal, Centuria joint CEO John McBain said: “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.”
The move comes as Augusta executes NZD$45m ($27.2m) equity raise to boost its balance sheet.
Centuria’s maximum commitment to the offer is NZD22.3m ($14.3m). The firm will utilise its cash reserves for the financing.
It will have A$120m ($77.4m) in cash balance after the deal.
As part of the deal, Centuria will appoint a director to the Augusta board.
Centuria joint CEO Jason Huljich said: “Augusta has impressive growth credentials and we believe that as COVID-19 conditions unwind we need to look to the future and believe Australasian markets will provide excellent opportunities for experienced and nimble managers such as Centuria and Augusta.”
