CENTURIA Capital has sold its reverse mortgage assets.
The portfolio has a balance of $125.4 million and was sold at a slight premium to the face value of the pool balance.
Centuria group CEO John McBain said the portfolio sale will release approximately $32.6 million of net equity. Centuria will retain a $24.4 million portfolio of fixed rate reverse mortgages as a long-term investment.
“The sales release substantial capital from non-core assets, thereby strengthening the group’s balance sheet to support the growth of core businesses and the implementation of a number of capital management initiatives.
“It is anticipated that capital will be allocated to the following areas, co-investment in the forthcoming Centuria Metropolitan REIT, provide seed capital to secure assets for the unlisted property funds division, co-investment with CNI investors in value-add property projects arising from existing portfolio and co-investment with wholesale property clients,” he added.
Australian Property Journal
