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  • Centuria Capital (CNI) has entered a deal to merge with Primewest (PWG) to create a $15.5 billion property fund management platform
  • The merged group would have a market capitalisation of roughly $2.2 billion, likely lining them up for ASX/S&P 200 index inclusion
  • The Primewest Board of Directors unanimously recommend that Primewest securityholders accept the merger, in the absence of a superior proposal
  • It is also subject to an independent expert, Deloitte, opining that the merger is fair and reasonable
  • Primewest Founders John Bond, David Schwartz and Jim Litis will enter two-year employment contracts as senior executives of Centuria
  • CNI shares have jumped 1.81 per cent to $2.82, while PWG has gained 5.8 per cent to trade at $1.55

Centuria Capital (CNI) has entered a deal to merge with Primewest (PWG) to create a $15.5 billion property fund management platform.

The move is set to make the combined companies one of the largest real estate fund managers on the ASX, with a mix of real estate assets across Australia and New Zealand.

The merged group would have a market capitalisation of roughly $2.2 billion, likely lining them up for ASX/S&P 200 index inclusion.

The Primewest Board of Directors unanimously recommended that Primewest securityholders accept the merger, in the absence of a superior proposal.

It is also subject to an independent expert, Deloitte, opining that the merger is fair and reasonable.

Each of the directors, including founding directors John Bond, David Schwartz and Jim Litis, who collectively own 53 per cent of total securities in Primewest have confirmed they intend to accept the merger.

Primewest Founders John Bond, David Schwartz and Jim Litis will enter two-year employment contracts as senior executives of Centuria.

In addition, John Bond, David Schwartz and Jim Litis will enter two-year escrow arrangements in relation to their Centuria holdings upon merger completion.

“The merger represents an exciting opportunity to combine two highly complementary real estate platforms that share similar philosophies and strong track records,” Centuria Joint CEO John McBain commented.

“Primewest has a strong distribution platform and expertise across a range of sectors and geographies which are complementary to Centuria. Joint CEO Jason Huljich and I will be delighted to welcome the Primewest executives to the Centuria group and look forward to working closely with them to grow the combined platform,” McBain added.

“We believe the merged group will be strategically poised for further growth in the healthcare and agricultural sectors in particular, as well as the traditional real estate sectors,” he concluded.

CNI shares have jumped 1.81 per cent to $2.82, while PWG has gained 5.8 per cent to trade at $1.55 at 11:47 am AEST.

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