David Paradice’s unlikely marriage with Charter Hall

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The founder of Paradice Investment Management agreed to sell a 50 per cent stake to the property manager after months of confidential talks.

Paradice Investment Management is preparing to take on the likes of Magellan Financial Group and GQG Partners in global equities after securing Australian real estate investment bigwig Charter Hall as a 50 per cent shareholder.

“The big thing is we can build big-bucket equity products like in global equities that most importantly deliver for the investors but can also have scale, Charter Hall also has the option of buying the rest of the boutique’s equity at the start of the 2025 financial year, subject to undisclosed conditions. Paradice IM will keep its brand, staff and offices, and Mr Paradice.The conversations between Mr Paradice and Charter Hall Group chief executive David Harrison began around September last year, when the two companies participated in the government’s Your Future, Your Super reforms for the superannuation sector.

He said the purchase price of 10 times net profit after tax meant the deal would be earnings positive for Charter Hall shareholders. It is also much lower than the NPAT multiple of comparable businesses such as GQG Partners.Charter Hall has long articulated its desire to diversify from unlisted property, including into debt. It has made a few acquisitions on the way including buying Macquarie’s real estate investment trusts. But it has walked away from others, like Hastings Infrastructure.

 

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Charter Hall snaps up 50pc stake in David Paradice’s Paradice Investment ManagementDavid Paradice’s equities boutique is understood to be quietly stitching up a 50 per cent sale to Charter Hall, in a surprising move for the ASX-listed property group.
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