Centuria and Primewest Propose $15bn Merger

ASX-listed Centuria Capital has mooted a $600-million deal to merge with Primewest to form a $15.5-billion portfolio of assets under management.

Centuria has entered into a Bid Implementation Deed in relation to a proposed off-market takeover of the Perth-based Primewest, whose board unanimously recommended the merger to its shareholders.

Primewest founders John Bond, David Schwartz and Jim Litis will receive two-year contracts as senior executives of Centuria. They will also enter into two-year escrow arrangements in relation to their Centuria holdings upon the completion of the merger.

The merged property platform would have $15.5 billion in assets under management, representing a 53 per cent lift in Centuria’s managed assets.

Centuria chairman Garry Charny said the merger was consistent with the company’s dual strategy of asset acquisitions and corporate mergers and acquisitions.

“Primewest is a high-quality, well-established fund manager and the Centuria board looks forward to the successful completion of the merger and building on Centuria’s position as a leading Australasian property fund manager,” Charny said.

Centuria joint chief executive John McBain said he and his joint chief executive Jason Huljich (pictured) would welcome the Primewest executives to the Centuria group to help grow the combined platform.

“The merger represents an exciting opportunity to combine two highly complementary real estate platforms that share similar philosophies and strong track records,” McBain said.

“Primewest has a strong distribution platform and expertise across a range of sectors and geographies which are complementary to Centuria.”

The merger is contingent on a minimum of 90 per cent acceptance of all Primewest securities.

If this and other pre-conditions are met, the compulsory acquisition process would begin mid-June.