MA Financial Group (MAF) is set to significantly expand its real estate asset management business through the acquisition of IP Generation, a Melbourne-based real estate investment firm. The deal, valued at $90.4 million in fixed consideration (7.9x FY24 normalised EBITDA), will see MA Financial’s assets under management (AUM) increase to over $12 billion. The transaction is expected to be accretive to MA Financial’s FY25 underlying earnings per share on a full year pro forma basis.
IP Generation, established in 2018, manages approximately $2 billion in shopping center assets. The acquisition will establish a broader real estate funds management platform managing roughly $8 billion in equity and debt across core and alternative real estate sectors. MA Financial believes the acquisition is strategically timed, stating the macro environment is supportive of generating strong returns for investors.
The fixed consideration includes $80 million upfront in MAF shares and $10.4 million deferred (50% cash, 50% MAF shares) payable in 12 months. Scrip consideration will be subject to escrow, up to five years. Additional earnout consideration may be payable subject to meeting future performance milestones. Completion of the transaction is conditional on customary conditions precedent, including certain change of control consents being received and is expected to complete early in the second half of 2025.
The acquisition aligns with MA Financial’s strategy to build a diversified alternative asset manager, offering investors access to unique private market investments. MA Financial highlights potential synergies and strategic benefits, including a broader real estate funds management platform with approximately 250 professionals and a complementary, high-growth real estate funds management platform. IP Generation’s leadership team will join MA Financial in senior roles.
