Augusta buys Christchurch site for $39.5M, plans syndication offering

Monday 2nd November 2015

Augusta Capital, the listed property investor and fund manager, has agreed to buy a Christchurch industrial property for $39.5 million from an undisclosed seller, which it plans to offer to investors through a syndication later this month.

The Auckland based company will raise $25.2 million in investor equity through the syndication, of which $6 million will be subscribed to by the vendor, it said in a statement. The purchase agreement will be settled after the capital raise in mid-December.

The property at 146 Shands Road in Christchurch is leased to General Distributors, a subsidiary of Progressive Enterprises, with a remaining term for 8.6 years. The site was damaged in the 2010 and 2011 Canterbury earthquakes, before being rebuilt as Countdown's regional distribution centre for the area.

Last year, Augusta bought property investors KCL Property and Investment Property Titles for a combined $15.4 million in cash and scrip, giving it about 165 properties to manage, with some $1.1 billion in funds under management.

Augusta shares last traded at 95 cents, and have increased 2.7 percent over the past year.

BusinessDesk.co.nz

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