Augusta Industrial Fund to take over 4 existing Auckland syndicate properties plus one in Christchurch

Augusta Capital Ltd’s Augusta Industrial Fund has agreed to buy one Christchurch & 4 Auckland industrial properties for $174 million, taking the gross asset value of the fund to $294 million on completion.

The fund will buy the Auckland properties from existing Augusta-managed syndicates, whose investors voted on Friday to approve the sales. The Christchurch property, known as the Castle Rock Business Park, comprises 13 buildings leased to 16 tenants on one title.

Augusta chair Paul Duffy & managing director Mark Francis said the acquisitions were consistent with the Industrial Fund’s strategy to firstly deliver sustainable & stable returns by diversifying both tenant & location and, secondly, to grow the fund’s gross asset base over the next 2-3 years with a view to a possible NZX main board listing.

“The growth in the Augusta Industrial Fund also further evidences the execution of Augusta’s strategy to develop & grow a range of multi-asset property funds in order to be New Zealand’s most diverse & respected institutional grade funds management business across multiple sectors in both listed & unlisted platforms.”

To fund the acquisitions, the fund will undertake a second capital raising, for $110 million. Mr Francis said the product disclosure statement should be registered in late January. All 5 settlements are pencilled in for 28 March.

Augusta Capital holds a 10% stake in the Industrial Fund and will invest further equity in the capital-raising to maintain this holding. As the fund’s manager, Augusta Capital will receive a 1% acquisition fee in connection with the acquisition, which will be paid on settlement. Augusta will also underwrite a portion of the equity raising, with the amount to be confirmed once discussions with other underwriters have been concluded.

Attribution: Company release.

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