Australian Institute of Property Management has bought Melbourne based strata management business, the INSiTE Group.
The transaction included almost 11,000 lots and will add a further 30,000 lots to APM’s management portfolio.
The purchase price, which will be funded by a combination of debt and equity, will be based on a multiple of 5x the EBITDA determined during the due diligence process. The expected EBITDA is approximately $3.5 million.
The current owners will provide vendor finance of $2.5 million, repayable within two years. Bank finance of around $11 million is in the process of being finalised.
A share placement will be undertaken to fund the remaining portion of the purchase price.
Australian Property Journal
