SYDNEY, AUSTRALIA: Growthpoint Properties Australia has completed the acquisition of 100% of the shares in Fortius Funds Management Pty Ltd. The transaction was announced on 3 August, and following the satisfaction of all conditions precedent, completion has now taken place. All change of consent controls have been received.

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..