NZX-listed Augusta Capital Ltd’s syndication subsidiary, Augusta Funds Management Ltd, has entered into an unconditional agreement to buy the Southgate shopping centre in Takanini from Retail Holdings Ltd subsidiaries for $58.5 million.
The 21,000m² retail centre is fully occupied, with brand names such as Briscoes, Repco, Mad Butcher, Subway, ANZ Bank & Carls Jr. The transaction will also include a lease to the anchor tenant, Mitre 10 Mega, which is being varied to provide a 13.5-year lease until 30 May 2028. The Mitre 10 rent will increase annually by CPI, with a market review at the end of year 5.
Augusta Capital managing director Mark Francis said Augusta Funds Management intended to offer $50,000 Southgate syndication units before the scheduled 30 April settlement date. The syndicated offer will require $34.3 million of investor equity to be raised. The offer will be fully underwritten, including $23 million by Augusta Capital.
Mr Francis said the balance would be funded through new debt facilities. He expects the offer is expected to open in late February or early March.
Retail Holdings, a commercial property & investment company owned by the Staples family, announced a fortnight ago it had rebranded itself as Urban Partners Ltd. It formed 4 new subsidiaries for distinct development paths – health, Paihia, Waiwera & Southgate.
12 December 2014: Retail Holdings rebrands as Urban Partners
Attribution: Company release.