Centuria looks to continue its strong growth with the announcement that it will take a majority interest in the Heathley property funds management platform. The acquisition is expected to increase Centuria’s funds under management by $0.6M to around $5.2B and provides Centuria an entry into the attractive healthcare property sector.
The details of the transaction were announced by Centuria Capital Group (ASX: CNI) which will acquire a 63.06% interest in a new joint venture, Centuria Heathley, for $24.4M. Centuria will maintain a 50% voting right in the joint venture, with existing Heathley shareholders owning the balance. The acquisition values Heathley at $38.7M, which is slightly lower than the $39.6M price at which Dexus (ASX: DXS) valued Heathley in October 2018. At the time, Dexus was looking to take a stake in Heathley however this was not finalised as it was dependent on the ASX listing of Heathley’s healthcare funds which did not proceed.
The Centuria Heathley joint venture will allow Centuria to utlilise it’s strong distribution network to support Heathley’s unlisted funds. Centuria will also have an option to purchase the remaining shares in the joint venture after five years. The transaction is subject to Heathley’s shareholder approval and is expected to close by 11 October 2019.