Qualitas expands into Europe with Starz acquisition

Qualitas (ASX:QAL) announced its expansion into Europe through the establishment of a new regional private credit platform and the acquisition of UK-based Starz Real Estate.

The move directly aligns with the international growth strategy outlined in the company’s recent H1 FY26 results presentation.

To accelerate the expansion, Qualitas has agreed to purchase the investment management business of Starz for a total financial consideration of $36.5 million, which will be funded entirely from Qualitas’ existing cash reserves.

The acquisition breakdown includes $28 million dedicated to purchasing Starz's co-investment positions and $8.5 million for net positive working capital.

Founded in 2018, Starz is a prominent commercial real estate private credit manager overseeing an active £376 million loan portfolio across the UK and Europe, comprising 11 distinct investments.

Under the agreement, Qualitas’ newly established European division will assume management of this portfolio, which is currently in a capital repatriation phase.

Funds under management, fee-earning FUM, and regional earnings will be reported separately from Qualitas’ Australian operations.

While completion occurred simultaneously with the execution of transaction documents, management expects no material impact on FY26 or FY27 earnings.

Andrew Schwartz, Group Managing Director and Co-Founder of Qualitas, emphasised the immense scale of the opportunity, noting that the UK and European CRE lending market is more than five times larger than Australia's, providing a highly developed landscape for long-term growth.