Centuria Capital Group (ASX: CNI) has had a busy day today, having announced that its takeover of Primewest Group Ltd (ASX: PWG) is now unconditional and its unlisted fund is undertaking Australia’s largest single asset capital raise in 15 years.
At the time of writing, the Centuria share price is $2.73 – 1.49% higher than yesterday’s close.
Let’s take a closer look at today’s news out of the real estate funds management company.
Primewest takeover bid
Centuria launched an off-market takeover bid for fellow real estate funds management company Primewest on 19 April.
The takeover will see Primewest shareholders receiving $1.51 per share, made up of 20 cents in cash and 0.473 Centuria shares. The value of the shares is based on the Centuria share price as of 16 April.
Australia’s largest single asset capital raise in 15 years
In other news from Centuria today, the company’s unlisted Centuria Government Income Property Fund (CGIPF) is undertaking a $133 million capital raise.
The cash will go towards the purchase of a high rise building in Melbourne’s Footscray.
The fund will spend a total of $224 million for the 14-storey office building.
The entire building is currently leased, mostly to Victorian Government departments and agencies.
Centuria’s joint CEO Jason Huljich commented on the CGIPF’s capital raise:
Centuria has a 22-year track record for delivering successful fixed-term unlisted funds. This will be our largest capital raise to date for a single asset unlisted fund with a target of approximately $133 million.
With rising white-collar employment and workforces increasingly returning to the office, we believe office asset investments will increasingly deliver strong results. Already within the past few months, we’ve witnessed several large office transactions in the domestic market.
Centuria share price snapshot
Today’s gains have given the Centuria share price a boost.
Currently, the Centuria share price is up 5.4% in 2021. It has also gained 35.1% since this time last year.
The company has a market capitalisation of about $2 billion, which will soon increase when it merges with Primewest, which is valued at around $590 million.
Centuria has approximately 740 million shares on issue.