Halverton Real Estate Investment Management Limited has announced that the GPT Group, an Australian based property group, will acquire 100% of its shares.
GPT previously held a 25% shareholding in Halverton through its joint venture with global investment bank, Babcock & Brown. GPT will move to 100% ownership of Halverton, acquiring Babcock & Browns share of the Joint Ventures 50% interest in Halverton and the remaining 50% of the business from management for a total of €51 million.
GPT is one of Australia's largest diversified property groups with assets totalling €6.9 billion (AUD 11 billion) and is one of the top 30 stocks listed on the Australian Stock Exchange.
Richard Croft, Halvertons Chief Executive, said, "We have been working closely with GPT personnel over the past two years and this comes as a natural and exciting progression for both companies. We are similarly aligned in terms of culture and investment outlook and the financial backing this deal brings will greatly assist us to deliver our ambitious European growth strategy."
The transaction with GPT will complete at the beginning of July at which point the business will be re-branded GPT Halverton.
"This is a win-win situation. Halverton provides GPT with a well established European real estate investment management business with local knowledge and expertise and this fits well with GPTs desire to create a global real estate fund management business. Collectively, we are very excited by the opportunities GPT Halverton will have across Europe. The combination of the existing Halverton platform with GPTs financial backing and relationships within the real estate industry will result in an extremely successful business," Mr Croft said.
Nic Lyons, CEO of the GPT Group, said that Halverton represented an excellent fit with GPTs culture and strategy. "In Halverton, we are acquiring access to a highly regarded and experienced management team as well as the potential to build a significant presence in Europe as the business continues to realise its growth ambitions."
Under the terms of the acquisition, the Halverton Board and senior management team will continue to run the European business. GPT Halverton will remain as a separate business unit within GPT. All European employees will remain and new hires will continue to be made to meet the growth strategy.