Augusta buys industrial property in Brisbane for planned syndication

Monday 20th July 2015

Augusta Capital, the listed property investor and fund manager, has bought industrial property in Australia's Brisbane which it plans to offer through a syndication later this year.

The Auckland based company entered into an unconditional agreement to buy the Willawong site for A$10.66 million, and will lease the location to coatings and chemical manufacturer Akzo Nobel for an initial term of eight years, it said in a statement. The deal is expected to settle on Dec. 1 and the purchase price represents a yield of 7.14 percent before stamp duty.

Augusta plans to raise A$675 million in a syndicated offer of the property to investors, which will likely open in September.

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 $1, and have increased 3.1 percent this year.

BusinessDesk.co.nz

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