MA Financial Boosts Real Estate Clout with $90M IP Generation Deal
MA Financial Group is set to acquire IP Generation, a specialist real estate investment manager focused on Australian shopping centres, expanding its assets under management to over $12 billion and enhancing its market position.
- Acquisition of IP Generation for approximately $90.4 million mostly in MA Financial shares
- IP Generation manages around $2 billion in Australian shopping centre assets
- Deal increases MA Financial’s assets under management to over $12 billion
- Transaction expected to be accretive to FY25 underlying earnings per share
- Key IP Generation executives to join MA Financial’s leadership team
Strategic Expansion in Real Estate
MA Financial Group has announced a significant acquisition of IP Generation, a Melbourne-based real estate investment manager specialising in Australian shopping centres. This move is designed to bolster MA Financial’s real estate platform, increasing its assets under management (AUM) to more than $12 billion and enhancing its capability in a competitive market.
IP Generation, founded in 2018, manages approximately $2 billion across 10 unlisted funds, primarily focused on retail shopping centres. The firm has built a strong reputation for sourcing off-market acquisitions and delivering solid returns through active asset management, particularly in a challenging market environment.
Financial and Operational Details
The acquisition is valued at a fixed consideration of about $90.4 million, mostly paid in MA Financial shares subject to long-term escrow arrangements. This price implies a 7.9 times multiple of IP Generation’s normalised EBITDA for the fiscal year 2024. Additional earnout payments may be triggered by future performance milestones, aligning incentives for growth.
Importantly, the deal is expected to be accretive to MA Financial’s underlying earnings per share for FY25 on a full-year pro forma basis. The transaction also brings key IP Generation executives into MA Financial’s leadership, including founder Chris Lock, who will head the Core Real Estate division, and other senior figures with deep sector experience.
Strategic and Market Implications
This acquisition not only expands MA Financial’s scale but also enhances its geographic footprint, particularly in Melbourne, where IP Generation has a strong investor base. The combined entity will manage approximately 40 retail assets and benefit from a diversified investor base spanning wholesale high-net-worth, retail, and institutional clients.
MA Financial’s leadership highlights the favourable macroeconomic tailwinds expected in the real estate sector, particularly retail shopping centres, positioning the group to capitalise on growth opportunities. The integration of IP Generation’s team and expertise is seen as a natural cultural fit, promising a seamless expansion of capabilities.
Overall, this deal marks a strategic step for MA Financial as it aims to build a leading integrated real estate asset management business in Australia, offering investors unique access to internally sourced opportunities and diversified real estate exposure.
Bottom Line?
MA Financial’s acquisition of IP Generation sets the stage for accelerated growth and deeper market penetration in Australian real estate.
Questions in the middle?
- How will MA Financial integrate IP Generation’s funds and investor base operationally?
- What are the specific performance milestones tied to the earnout payments?
- How might this acquisition influence MA Financial’s strategy in other real estate sectors beyond retail?
