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OFM adds to property funds folio
Melbourne-based financial services company OFM Investment Group has bought Century Funds Management for $42.4 million. Herbert Geer & Rundle (HGR), led by Adam Brooks, advised OFM, while
Lawyers Weekly
Melbourne-based financial services company OFM Investment Group has bought Century Funds Management for $42.4 million. Herbert Geer & Rundle (HGR), led by Adam Brooks, advised OFM, while Clayton Utz, led by Matthew Anderson advised Century.
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Brooks said the acquisition was an exciting one for OFM, in terms of bolstering its sustained earnings streams, and fitted well with the company’s strategy of targeting the over-fifties market. Century Funds had approximately $440 million under management at the end of the financial year, and according to Lonsec research, delivered an average total return of 16.8 per cent between January 2000 and December 2005.
Chris Martin, managing director of OFM, said the acquisition was a perfect fit for the company’s corporate strategy. “Property is a key asset class in delivering both income and capital growth to our core over-50s market.”
OFM paid $26.8 million in cash and $15.6 million in OFM shares to make the 100 per cent acquisition.
“The transaction was special in terms of the closeness with which we worked with OFM’s senior executive team,” Brooks said. HGR was pleased to assist OFM with an acquisition that was consistent with its strategy, he said.
Following news of the transaction, OFM also announced last week that Century had purchased two properties for $36.41 million, taking its total funds under management to approximately $580 million. The properties are a $7.75 million office block in Artarmon and a $28.66 million bulky goods retail centre in West Gosford.
