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Augusta shareholders back Finance Centre sale

Monday 25th July 2016

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Augusta Capital's shareholders have overwhelmingly backed the sale of its Finance Centre properties in central Auckland for $96 million at a special meeting to consider the deal. 

Some 58,239,157 votes or 96.23 percent were cast in favour. 2,281,802 or 3.77 percent of votes were against. 

Heng Yue Limited, which is controlled by New Zealand resident David (Duoyu) Bei, is buying a total of four sites. They are Augusta House for $30 million, Podium Retail for $25 million, the Finance Centre for $11 million and the Finance Centre carpark for $30 million. Settlement is due to take place in stages between Oct. 1, 2016 and 1 April, 2019. 

A deposit of $9.6 million is being offered due to the staggered nature of the deal, with a further deposit of $6.6 million due on June 1 2017. 

The board of Augusta told investors that the offer was above the market valuation and the properties were currently in a "very saleable position with key anchor tenants all with strong covenants on long-term leases." Occupancy is at 97 percent. 

Augusta expects to reap a capital gain of $13.2 million on the sale. Proceeds from the sale are to be reinvested in its fund management business. 

Shares in Augusta Capital rose 0.9 percent or 1 cent to $1.12. They've gained 11 percent since the start of the year.

BusinessDesk.co.nz

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