Investment Matters

Company News

Other company news you may have missed over December/January

Australian Equities Portfolio

Threat Protect (positive impact) announced that it has acquired two security monitoring client bases from existing resellers for a consideration of $1.9 m. This should see the company’s recurring monitoring revenue increase by $600,000 per annum, with no additional operating costs.

The company has acquired client bases in both Western Australia and Queensland, which are long-standing users of Threat Protects service. The company is continuing to pursue its acquisition strategy and is seeking similar opportunities to increase its recurring revenue. 

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TZ Limited (positive impact) announced that it has been in the tender for a roll out of its Smart Lockers to a AAA rated US Bank. This will potentially see TZ’s locks rolled out to 54 locations, spanning Asia, Europe and the Americas and involving both initial equipment sales and long-term support for components. The three-year contract is with JLL/CBRE on behalf of Bank of America as part of MSA (master service agreement). 

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Property Portfolio

360 Capital Total Return Fund (TOT) and 360 Capital (positive impact) announced that it has invested a mix of debt and equity in Velocity property Group (a 19.9% strategic equity stake in addition to a $10m convertible note and $23.7m debt facility). Velocity Property Group (VP7) is an ASX listed, boutique Queensland residential real estate developer. The companies are anticipated to benefit from shared bank and non-bank relationships (allowing for further funding of projects), as well as  greater access to capital markets.

 

Income Securities Portfolio

An investment was made in the Metrics Credit Master Income Trust (ASX:MXT) in December. The security is an exchange traded, diversified fixed income fund provided by Metrics Credit. Metrics Credit are an alternative asset manager with expertise in fixed income, private credit, equity and capital markets – they currently manage approximately $5 billon in assets. The Master Income Trust holds a mix of individual corporate loans (approximately 125), in a range of industries, with a target return of the RBA cash rate +3.25% pa net of fees. Income from the trust is paid monthly.

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Centuria Capital (Centuria Bond) (positive impact) announced it had made a takeover offer to acquire New Zealand’s leading real estate fund manager, Augusta Capital Limited. Centuria has proposed an acquisition price of NZ$180m – (A$174 million) to purchase the real estate fund manager, which will lift its total assets under management (the value of property it manages) by A$1.9 billion to A$9.2 billion – a 26% increase. Shareholders representing 36.2% of Augusta’s register have entered pre-bid lock up agreements and have agreed to accept the offer. The company sees the acquisition provides it with immediate escale in New Zealand, with a majority of the exposure in Auckland. Approximately 70% of Augusta’s properties are in the Office and Industrial markets.