Augusta Capital Ltd said on Thursday it had successfully concluded negotiations on the final property to be included in the initial portfolio for the Augusta Industrial Fund.
Managing director Mark Francis said Augusta had entered into an unconditional agreement to acquire 20 Paisley Place, Mt Wellington, for $25,384,615 at a net initial yield of 6.50%. Settlement is scheduled for 31 May.
The property has a gross land area of 13,630m², net lettable area of 7877m² comprising 6221m² of warehouse, 1146m² of canopies & 508m² of offices.
It’s leased to Americold NZ Ltd, expiring on 30 November 2019. Icepak Ltd, a subsidiary of Hall’s Group Ltd, has agreed to lease the property on a new 12-year triple net lease from 1 December 2019. Hall’s Group has guaranteed the lease obligations.
Icepak is a storage & logistics business for primary producers & manufacturers specialising in dairy, horticulture, pet food, edible meats, fish, honey, pharmaceuticals, retail storage & distribution. It operates at 8 sites in Auckland, Waharoa (2 stores), Oringi, Wanganui, Longburn, Feilding & Christchurch.
The Hall’s Group operates a transport & logistics business primarily focused on refrigerated transport.
The other 3 properties in the industrial fund’s initial portfolio are Brick St, Henderson; 862 Great South Rd, Penrose; and The Hub, Seaview, Wellington.
The initial portfolio will have a weighted average lease term of 8.7 years, 100% occupancy, a diversified mix of 15 tenants, and a 60% weighting to the Auckland industrial market.
Mr Francis said Augusta would now seek to raise $75 million of equity for the fund, which would be fully underwritten. Augusta will underwrite $35 million and commit to hold a 10% stake in the fund for the long term.
The company expects to register a product disclosure statement for the fund just before or after Easter.
Attribution: Company release.