MA Financial Expands Real Estate Empire with $90M IP Generation Buy

Strategic Expansion in Real Estate Asset Management

MA Financial Group has announced a significant acquisition of IP Generation, a Melbourne-based real estate funds management platform with approximately $2 billion in assets under management (AUM). This move is designed to expand MA’s footprint in the real estate sector, increasing its total AUM to over $12 billion and reinforcing its position as a diversified alternative asset manager.

The $90.4 million transaction primarily involves the issuance of MA Financial shares, with $80 million paid upfront in stock and $10.4 million deferred, split evenly between cash and shares. This structure aligns both companies’ interests, with a portion of shares subject to long-term escrow and additional earnout payments contingent on future performance milestones.

Capitalising on Market Tailwinds

MA Financial’s leadership sees this acquisition as timely, given the current macroeconomic environment. The real estate sector, particularly retail shopping centres, is positioned for recovery following challenges from higher interest rates and elevated construction costs. IP Generation’s focus on neighbourhood and regional shopping centres complements MA’s existing portfolio, offering exposure to a defensive asset class supported by non-discretionary tenants and resilient sales growth.

IP Generation’s track record is notable, having grown its AUM at a compound annual growth rate of 61% since 2018, with over $1 billion of equity raised from a broad base of approximately 1,100 active investors. Its in-house property management and leasing capabilities enable an active asset management approach, which MA Financial aims to leverage across its expanded platform.

Leadership and Cultural Synergy

The acquisition also brings a strong leadership team into MA Financial’s fold, including industry veterans such as Chris Lock, David Blight, Greg Miles, and Ingrid Van Dijken. These executives will assume senior roles within MA’s real estate asset management division, ensuring continuity and cultural alignment. The combined platform will employ around 250 professionals, enhancing operational expertise across retail, office, industrial, residential, hospitality, and other real estate sectors.

MA Financial expects the deal to be accretive to its underlying earnings per share in FY25 on a full-year pro forma basis, reflecting the financial attractiveness of the transaction. The company also highlights the strategic benefit of expanding its presence in the important Melbourne market and deepening institutional distribution relationships.

Looking Ahead

Completion of the acquisition is subject to customary conditions precedent, including regulatory approvals and change of control consents, with the transaction anticipated to close early in the second half of 2025. Investors will be watching closely to see how the integration unfolds and how MA Financial capitalises on the favourable real estate cycle to drive growth and returns.