SYDNEY: MA Financial Group announced today it will acquire IP Generation, a Melbourne-based real estate investment firm, in a deal worth 90.4 million.
The acquisition aims to expand MA Financial’s real estate asset management business, increasing its assets under management (AUM) to over 90.4 million.
The acquisition aims to expand MA Financial’s real estate asset management business, increasing its assets under management (AUM) to over 12 billion.
Transaction Details
- Fixed Consideration: 90.4 million, including 90.4 million, including 80 million in MAF shares upfront and $10.4 million deferred (50% cash, 50% shares).
- EBITDA Multiple: The deal values IP Generation at 7.9 times its FY24 normalized earnings.
- Timing: Expected to close in the second half of 2025, pending regulatory approvals.
IP Generation, founded in 2018, manages approximately $2 billion in shopping center assets across Australia. The firm has shown strong growth, averaging $2 billion in shopping center assets across Australia.
The firm has shown strong growth, averaging $450 million in annual AUM increases over the past three years.
Strategic Rationale
MA Financial cited favorable market conditions and sector recovery as key drivers for the deal. The acquisition will:
- Combine IP Generation’s 1,100 high-net-worth investors with MA’s institutional distribution network.
- Create a diversified real estate platform managing $8 billion in equity and debt.
- Enhance MA’s presence in Melbourne, with IP Generation’s leadership team joining MA in senior roles.
Leadership and Synergies
IP Generation’s executives, including founder Chris Lock, will transition to MA Financial. The firms emphasize cultural alignment and shared growth goals.
Market Outlook
MA Financial believes the retail real estate sector is poised for growth, citing resilient sales, diminishing retail space per capita, and e-commerce synergies.