360 Capital's REIT has acquired a 50% stake in a real estate fund manager.
The 360 Capital REIT (ASX: TOT) acquired half of PMG Funds, which is based in New Zealand and has NZ$665 million in total funds under management.
The sale price of NZ$17.5 million includes NZ$13.3 million in cash and NZ$4.2 million potential earn-out over two years based on key financial milestones.
"In line with TOT's refined equity strategy, this investment provides TOT with exposure to a growing real estate investment platform and the opportunity to invest in direct real estate assets along with underwriting the growth of the PMG platform," TOT head of real assets James Storey said.
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"TOT remains well capitalised with no gearing and a focus on growing 360 Capital's real estate strategy."
TOT said it will support PMG through an underwriting facility at market rates.