Acquisition of IP Generation

• Expands MA's real estate asset management business with $2 billion in AUM
• Acquisition expected to be accretive to FY25 underlying earnings per share
• Combines IP Generation's track record and network with MA's balance sheet and capital raising capabilities

MA Financial Group Ltd has announced the acquisition of IP Generation, a specialist real estate investment firm based in Melbourne, Australia. IP Generation manages approximately $2 billion in shopping centre assets across its funds and has established an impressive track record since its establishment in 2018. The acquisition will expand MA's real estate asset management business, increasing its total assets under management to over $12 billion. The fixed consideration for the acquisition is $90.4 million, comprising $80 million in upfront consideration payable 100% in MA Financial shares and $10.4 million in deferred consideration payable 50% in cash and 50% in MA Financial shares in 12 months. The acquisition is expected to be accretive to MA Financial's FY25 underlying earnings per share on a full year pro forma basis. The transaction is expected to complete early in the second half of 2025, subject to customary conditions precedent. The acquisition is seen as a strategic move by MA Financial to build scale in real estate asset management at an attractive point in the cycle, leveraging IP Generation's track record and network of investors combined with MA's balance sheet and capital raising capabilities.

The fixed consideration of approximately $90.4 million implies a 7.9x multiple of FY24 normalised EBITDA. The transaction is expected to be accretive to MA Financial's FY25 underlying earnings per share on a full year pro forma basis.

MA believes the macro environment will provide strong tailwinds to the real estate sector in the near term as it recovers from higher interest rates and elevated construction costs. The acquisition positions MA well to take advantage of an attractive point in the real estate cycle.