MA Financial Group (ASX: MAF) is paying $90.4 million to acquire shopping centre investor IP Generation, bringing on board $2 billion in retail assets held in unlisted funds for about 1,100 high-net-worth investors.
The Sydney-based MA Financial, with a current portfolio of $10 billion in assets under management, says the acquisition will deliver the group “expanded acquisition and capital raising capability” to accelerate its growth.
The buyout follows an active three years for IP Generation, a Melbourne-headquartered group that has acquired about $1.4 billion in shopping centres on behalf of its investors.
Founded in 2018 by Chris Lock, IP Generation capitalised on the shake-up of the retail sector during COVID-19 lockdowns, tripling its portfolio to 13 shopping centres through the acquisition of Mildura Central Shopping Centre, Bega Village Shopping Centre, a 50 per cent joint venture in Westfield Helensvale on the Gold Coast, and the NSW Essential Retail Trust, which comprises six shopping centres.
IP Generation also manages the David Jones Bourke Street building in Melbourne and Glendale Town Centre in Newcastle.
MA Financial says IP Generation has done an “exceptional job of buying well in a dislocated market, and that bodes well for its fund investors and the platform's ongoing success”.
The acquisition also boosts MA Financial’s presence and investor base in Melbourne.
“We have a long association with IP Generation and its senior leaders and believe that together we have a significantly strengthened real estate management capability,” says MA Financial CEO Julian Biggins.
“This acquisition will mutually benefit our many investors, which aligns with our philosophy of achieving win-win outcomes for clients, shareholders and staff.”
MA Financial is an alternative asset manager with a range of investments in shopping centres, hospitality, hotels and marinas.
The group currently manages 28 retail assets across its real estate asset management and property management business, with the group overseeing about $8 billion of assets under management across core real estate, alternative real estate and real estate credit.
Lock, a seasoned property investor who founded IP Generation after an extended career with Westfield, will become MA Financial’s head of core real estate following the acquisition.
“Combining IP Generation with MA Financial is a natural fit,” says Lock, the CEO of IP Generation.
“We have known and worked with the MA team for many years and believe that we have a strong cultural alignment as well as a common founder philosophy.
“We are all very excited about the future and look forward to continuing to deliver attractive investment opportunities and returns to our investors in the same way we have over the last seven years.”
IP Generation manages 10 funds that own 14 shopping centres on behalf of about 1,100 high-net-worth investors. MA Financial says that under Lock's leadership, the group has built an impressive track record in securing assets, raising capital and delivering strong returns to its investors.
IP Generation has raised more than $1 billion of equity for its funds since inception from its investor base which is concentrated in Victoria.
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