Augusta nets $2.9 mln for NZME building syndication

Monday 8th August 2016

Augusta Capital reaped $2.9 million in fees from its biggest property syndication deal on the purchase of the NZME Central complex in downtown Auckland.

The property investor and funds management firm will receive an offeror's fee of $2.2 million for setting up a syndicated offer for the building, which was oversubscribed, it said in a statement. The firm also received a $750,000 underwriting fee and will continue to generate management fees for the building.

The syndicated offer raised $70 million, Augusta's largest, to help fund the $115.8 million acquisition of the building, which has a weighted average lease term of 12 years, with tenants including news organisation NZME, Meredith Connell and Pernod Ricard. Mansons TCLM, who sold the building, is currently leasing a vacant floor and a pre-condition of the sale was for the vendor to find a new long-term tenant.

Augusta shares last traded at $1.08 and have gained 8 percent so far this year.

BusinessDesk.co.nz

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