Augusta Capital Ltd’s Augusta Industrial Fund has closed oversubscribed again, this time with $115 million raised.
The minimum amount to be raised was $105 million, with the ability to take a further $10 million of oversubscriptions.
When it opened the fund for investment in the first half of last year, Augusta raised $75 million.
Also this week, Augusta closed its latest Australian fund, for a Brisbane property, oversubscribed.
In the new industrial fund capital-raising, Augusta Capital has subscribed for a further 11.5 million shares to maintain its 10% stake in the fund. It’s also taken up a further 8 million shares short-term for investors who have term deposits maturing after the closing date for payment, but who have committed to buy those shares. Augusta expects to divest these shares to those investors by the end of May.
Augusta will receive acquisition & underwriting fees in connection with the offers as well as ongoing management fees.
The fund’s second equity raise was to acquire 5 new assets that provide further tenant & location diversification to Augusta Industrial’s portfolio. The fund’s largest tenant only accounts for 8.4% of total passing rent.
Managing director Mark Francis said yesterday: “This delivers on Augusta Industrial’s strategy to provide sustainable & stable returns and diversification of tenant risk within the strongly performing industrial sector of the New Zealand property market.”
Augusta established the industrial fund in April 2018 as an open-ended, unlisted property fund, with an initial portfolio of 4 properties. The portfolio now consists of 9 properties – 7 in Auckland, one each in Wellington & Christchurch.
- Portfolio valuation $296.7 million
- Weighted average lease term to expiry 5.8 years (as at yesterday)
- Occupancy 99%
- A diversified mix of 47 tenants
- 65% weighting to the Auckland industrial market
- Gearing of about 38% as a result of the oversubscription, and
- Pre-tax cash return of 6.5%/year forecast for this financial year & the next (paid monthly).
Settlement of the acquisition of the 5 new properties was expected to occur late yesterday.
Brisbane investment oversubscribed
The Augusta Kedron Partnership, an Australian limited liability partnership that will acquire 255-257 Gympie Rd, Kedron, Brisbane – a single-asset multi-tenanted investment – closed oversubscribed this week, with $A14.8 million raised.
Augusta expects to settle that acquisition today.
Mr Francis said these capital-raisings, alongside Augusta Industrial’s initial raising & the Augusta St Georges Bay Road Property Trust, took Augusta’s total equity raising for the financial year ending this Sunday, 31 March, to about $255 million (excluding Augusta’s 10% stake in Augusta Industrial). That’s up from $125 million raised in the previous 12 months.
15 February 2019: Augusta Industrial Fund offer opens
21 December 2018: Augusta Industrial Fund to add 5 properties, seek more investors
10 December 2018: Augusta Industrial Fund to take over 4 existing Auckland syndicate properties plus one in Christchurch
16 June 2018: Augusta industrial fund closes oversubscribed
Attribution: Company release.