Ingenia Communities (ASX:INA) has inked a deal with Eighth Gate Capital Management to acquire the Eighth Gate funds and asset management business.
Established in 2013, Eighth Gate has assembled approximately $140 million in assets under management through six unlisted funds, which own ten assets.
Ingenia says it will acquire the business and will co-invest in each of its Funds, ensuring alignment with Fund investors and access to the revenue streams generated by asset ownership and development.
Ingenia expects to invest up to $17 million to acquire the business and an interest in each of the Funds.
Subject to the finalisation of conditions precedent, the acquisition of Eighth Gate and Ingenia’s co-investment in the funds is anticipated to be complete by the end of July 2019 and will be funded from existing capital sources.
The transaction is expected to be immediately accretive.
Shares in Ingenia (ASX:INA) are trading flat at $3.24.