Sharechat Logo

Augusta to buy 33 Broadway in Auckland for $143 mln

Thursday 22nd December 2016

Text too small?

Augusta Capital said its Augusta Funds Management unit has inked a deal to purchase a development in Newmarket, Auckland, for $143 million.

The Auckland-based fund manager and property investor said it has entered an agreement with Mansons Broadway, which will continue to construct the building at 33 Broadway, Newmarket.

Under the agreement, an Augusta nominated syndicate or fund will ultimately acquire the property following an equity raising, it said in a release to the New Zealand stock exchange.

Augusta Funds Management said it has entered unconditional underwriting commitments for the equity component, but the structure of that investment entity is still being finalised.

The deal announced Thursday involves a fixed amount payable at settlement, further drawdowns made on a cost to complete basis as it progresses and retention amounts payable on achievement of certain milestones.

The agreement is conditional on several things including all parties agreeing on the loan facility agreement and associated documents by Jan 24 as well as approval from the anchor tenant by the end of January. Settlement is currently slated for July 1, subject to earthworks and piling having been completed.

Augusta diversified into funds management last year when it bought KCL Property and Investment Property Titles. It now has around 155 properties to manage and some $1.4 billion in funds under management, according to its website.

The company said Thursday’s deal was strategic as it moves into the funding and development of investment grade assets.

 Augusta’s shares last traded at 95 cents and have declined 5 percent this year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Now is the time to reassess your investments
Now is the time to reassess your investments
Fonterra looking to lift China's importance in new strategy
A2, Synlait shares climb as takeover bid revives optimism about Chinese appetite for milk
Service sector activity eases in August but still expanding
Lumpy imports drive bigger July trade deficit than expected
Nimbys, carparks and the status quo under threat as govt tells big cities: grow up and out
Dairy manufacturers got better prices in June quarter
Orr defends RBNZ rate cut, says monetary policy looks ahead, not behind
RBNZ's Orr says investors need to put their money to work