Growthpoint Properties Australia has completed the acquisition of 100% of the shares in Fortius Funds Management Pty Ltd boosting the listed REITs Funds under Management by $1.9bn.
The transaction was announced on 3 August, and following the satisfaction of all conditions precedent settlement has now taken place. The transaction comprised a $45 million initial purchase price, with a net asset adjustment, paid in cash and was funded from the Group’s existing liquidity and debt facilities. An additional earn out component of up to $10 million is payable based on agreed milestones being met over the period to June 2024.
Tim Collyer, Managing Director of Growthpoint, said, “We are pleased to have successfully completed the acquisition of Fortius, one of Australia’s leading family-owned private real estate funds management businesses with an over thirty-year track record of generating investment returns. Establishment of a funds management business has been a key priority for the Group and adds $1.9 billion of third party funds under management (FUM) to Growthpoint, bringing total assets under management to $7.2 billion.”
“We look forward to the team joining Growthpoint and together continuing to deliver strong investment performance for Fortius’ institutional, high net worth and wholesale investors. We intend to grow the funds management business, targeting 10-20% of Group EBIT over the medium term, seeking to deliver incremental growth to earnings and income stream diversification for Growthpoint securityholders.”
Fortius management, Ray and Sam Sproats said “Joining with Growthpoint is an ideal outcome for Fortius and our
stakeholders as it provides the best path to grow with our investors’ aspirations as well as provide opportunities for our talented investment team. We are enthused by the complementary fit of an active funds manager with a leading office and industrial REIT.”
Ray Sproats concluded, “The Fortius team and I are excited by the capital support for growth initiatives as well as the continuation of services for our investors. I can think of no better way to build on our thirty years of successful investing.”
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