CENTURIA’S takeover of Primewest is now unconditional after the Perth’s based group’s founding director formally accepted terms, creating a listed real estate fund with over $16 billion of assets under management.
John Bond, David Schwartz and Jim Litis and their associates collectively own 53% of shares in Primewest, taking acceptances on Centuria’s offer to 76% of Primewest securities.
Primewest securityholders who have accepted the Centuria Offer will receive $0.20 in cash plus 0.473 Centuria securities for each Primewest security.
Centuria and Primewest agreed to the $600 million deal in April.
“We are delighted at the significant response from Primewest securityholders and to be able to declare the offer unconditional,” John McBain, Centuria joint CEO, said.
“Centuria’s expanded funds management platform will have enhanced geographic and sector diversification, enabling the merged group to take advantage of a broader range of acquisition opportunities.”
Based on acceptances to date, 143 million new Centuria securities will be issued. Primewest securityholders who have not yet accepted the Centuria offer will receive the offer consideration within five business days of acceptance of the Centuria offer.
The offer period closes on 24th June.
Bond, Schwartz and Litis will enter into two-year employment contracts as senior executives of Centuria.
The deal is expected to deliver earnings per security accretion of 4% for Centuria and 19% for Primewest on a pro forma FY21 basis.
Centuria has just completed its first affordable housing projects, delivering 190 homes across four Central Coast developments worth a combined $72 million, and in April moved into the real estate debt markets space with a 50% investment in Bass Capital that presents a pipeline of opportunities worth more than $300 million.