centuria logo looking upward
CNI proposed merger with PWG this week under a $600 million deal. Image – Henry Thai
  • Primewest and Centuria Capital Group merger proposed
  • HomeCo and Irongate make acquisitions
  • Centuria Capital Group raises $199M

Welcome to hump day and the mid-week ASX listed real estate wrap, and what a week it was, Centuria (ASX: CNI) and Primewest (ASX: PWG) could merge, ten commercial acquisitions up and down the east coast, and Centuria Capital Group (ASX: CNI) successfully raised $199 million.

No news from Vitalharvest (ASX: VTH) though, but with the matching right period expiring tomorrow, it is sure to be reported on shortly.

The broader market

The markets have dropped from the incredible highs seen over the past few weeks, now sitting at 6945.70, down 1.03%.

The market top five performers saw education, resources and travel taking out spots, Domain (ASX: DHG) took out fourth place on the list.

So far today, the top performers for real estate companies are:

Top-performing ASX listed real estate companies

Company Code Price Change (%)
US Masters Residential Property Fund URF 0.3 11.11
Devine Limited DVN 0.125 4.17
Acumentis Group ACU 0.125 4.17
Proptech Group PTG 0.72 2.86
Domain Group DHG 4.925 1.97

Source: ASX

The movement

The biggest story this week so far is the proposed merger of Primewest (ASX: PWG) and Centuria Capital Group (ASX: CNI). The offer came from Centuria to Primewest and is expected to be a $600 million deal.

The result of a merger would see the group become one of the largest listed Australian real estate fund managers, assets after the merger totalling $15.5 billion.

Primewest’s board unanimously recommended the merger. A minimum acceptance rate of 90% across all of Primewest’s securities will now be needed to approve the merger.

In other Centuria Capital Group (ASX: CNI) news, the company completed its listed note offer, raising $199 million. Some 1.99 million notes were issued at $100 each yesterday, the company said notes will begin trading today.

HomeCo (ASX: HDN) also made waves, with seven large format retail acquisitions on the cards and the acquisition of Armstrong Creek Town Centre close to Geelong also in the works. The move is pending unitholder approval, the deals worth $322 million in total, retail coming in at $266.4 million, and Armstrong Creek worth $55.6 million.

Irongate (ASX: IAP) also made two Queensland acquisitions, one in Kingston, the other in Morningside. Both are industrial facilities that are under construction, expecting to be completed in December and November respectively. The Kingston property had a consideration of $14.32 million, Morningside was $5.932 million.

Domain Holdings (ASX DHG) announced the appointment of a new non-executive director of Domain, Mike Sneesby. Mr Sneesby is the CEO of Nine Entertainment Co., which is a majority shareholder of Domain. The company said Mr Sneesby replaces non-independent director Hugh Marks who recently stepped down as director of Domain.

Finally, dividends were distributed for Arena REIT (ASX: ARF, 3.725 cents); Qualitas Real Estate Income Fund (ASX: QRI, 0.8163 cents); Australian Unity Office Fund (ASX: AOF, 3.75 cents), Charter Hall Long WALE REIT (ASX: CLW, 7.3 cents) and Charter Hall Social Infrastructure REIT (ASX: CQE, 4.1 cents).

Quite the start to the week, with more news undoubtedly to come.

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