Announcement
TRANSACT: AUG: Augusta acquiring Albany Lifestyle Centre for new fund
08:41am
AUG
24/05/2019 08:41
TRANSACT
PRICE SENSITIVE
REL: 0841 HRS Augusta Capital Limited
TRANSACT: AUG: Augusta acquiring Albany Lifestyle Centre for new fund
NZX RELEASE
24 May 2019
Augusta acquiring Albany Lifestyle Centre, Auckland for new fund
Augusta is pleased to announce that its wholly owned subsidiary Augusta Funds
Management Ltd has entered into an agreement for a new fund to acquire the
Albany Lifestyle Centre currently owned by Argosy Property. The purchase
price is approximately $89 million (representing an initial yield of 6.84%)
with settlement agreed to occur on 27 March 2020. Augusta is currently
considering whether to establish a single or multi-asset fund to acquire the
property. Further information on this strategy will be provided once
available.
The Centre has a current WALT of 7.65 years with Mitre 10 being the anchor
tenant with a lease through until 30 April 2033. Alongside Mitre 10 there
are a further nine retail tenants (including Freedom Furniture, the Design
Store and Danske Mobler) and two office tenants (E-Road and NZX).
Augusta believes there remain strong fundamentals for properties based around
bulk retail stores, with this property also underpinned by its location.
There continues to be considerable growth and development around the Albany
Town Centre and an expanding catchment from housing developments will fuel
demand for retailers at the Centre. The property has easy access from the
Northern Motorway and benefits from the surrounding retail in the area with
Westfield's Albany Mall and the Albany Megacentre nearby. Retailing patterns
will continue to evolve and are closely monitored by Augusta.
If acquired by a single asset fund, the equity component of that fund is
expected to be approximately $55 million with the balance funded by a bank
debt facility. Augusta will underwrite $20 million of that raising with a
third party underwriting the balance. Should a multi-asset fund be
established, the $35 million third party underwriting commitment also applies
to that fund. Establishment and underwriting fees at usual levels will be
received by Augusta from the new fund established.
-ENDS-
For further information, contact:
Mark Francis
Managing Director
09 300 6161
Paul Duffy
Chairman
End CA:00334976 For:AUG Type:TRANSACT Time:2019-05-24 08:41:42
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