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Centuria acquires stake in Bass Capital

Centuria Capital Group will pay $24 million for a 50% stake in the real estate debt manager, founded five years ago by former UBS and Wingate investors.

Bass Capital has about 300 high-net-worth investor clients and provides real estate secured non-bank finance for development projects, bridge finance and residual stock.

It has $270 million committed loan book, a $107 million open-ended debt fund and over $300 million plus in pipeline opportunities, according to Centuria.

Centuria will pay $24 million for the initial 50% stake in Bass. It also has the option to acquire the remaining 50% in five years.

Bass Capital's founding partners Giles Borten and Nicholas Goh will continue to lead the joint venture. Borten is a former UBS European head of leveraged finance and debt capital markets while Goh is a former managing director of Wingate and Gresham Partners.

"For the past three years we have partnered with Bass Capital across a number of lending opportunities and have confidence in the team's abilities and its business model," said Centuria joint chief executive Jason Huljich.

"Our investment in this platform is an opportunity to capitalise on strong demand from our high-net-worth investors for debt products, as they seek a diversified investment risk profile."

The transaction was funded via Centuria's balance sheet. It expects the joint venture to be accretive to earnings for FY22.

Bass Capital was established in 2016. Average internal rate of return across its 42 short-term debt funds (terms between six and 36 months) has been more than 12% p.a., according to Centuria.

"This investment brings a new business line to Centuria, which helps expand our unlisted platform, diversify our recurring revenues and provides further investment opportunities to our investor clients," Borten and Goh said in a joint statement.

Centuria has about $10.5 billion in asserts under management.

On April 19, it entered a bid implementation deed with PrimeWest Group (ASX: PWG) to acquire PWG in an off-market takeover.

Read more: Bass CapitalCenturia Capital GroupGiles BortenNicholas GohGresham PartnersJason HuljichPrimeWest Group