SYDNEY: The Metrics Income Opportunities Trust (ASX: MOT) announced on Monday that it has agreed to increase its stake in BC Investment Group (BCI), a non-bank financial services group specializing in consumer lending for residential real estate, from 29.8% to 100%.
The acquisition, facilitated by the MCP Credit Trust, in which MOT holds a 15.8% indirect stake, will see the Credit Trust or a nominee acquire all shares currently held by FEC Capital Limited (53.2%) and other minority stakeholders, including management (17.0%).
The initial purchase price for the remaining shares is A$140.3 million, with potential deferred consideration of up to A$6.9 million based on BCI’s financial performance over the next 12 months.
BCI, which manages over A$6.5 billion in loans as of Jan. 31, 2025, primarily in Australian residential mortgages, is expected to provide the Credit Trust and MOT with increased exposure to a high-quality financial services business with strong growth prospects.
Following the acquisition, MOT’s exposure to BCI will represent approximately 1.90% of its net asset value on a pro forma look-through basis.
Metrics Credit Partners Pty Ltd, the investment manager for MOT, highlighted the strategic value of the acquisition, noting BCI’s diversified financial services offerings and its focus on consumer lending for properties in Australia and the UK.
The acquisition will be funded from the Credit Trust’s currently available capital, and the purchaser will also refinance shareholder loans provided by FEC to BCI, which support BCI’s loan portfolio.
Metrics, an Australian-based non-bank corporate lender and alternative asset management firm, manages approximately A$23 billion in assets, including the Metrics Master Income Trust (ASX: MXT) and the Metrics Real Estate Multi-Strategy Fund (ASX: MRE).