Augusta Capital buys KCL Property, Investment Property Titles for $15.4m

Augusta Capital 12-month price history (NZX.com)

Augusta Capital [NZX: AUG], the New Zealand listed property investor and fund manager, will buy property investors KCL Property and Investment Property Titles for $15.4 million in cash and scrip, to boost their portfolio and expand into Australia.

The Auckland-based company will buy the KCL business from Bryce Barnett, Phil Hinton and Cheryl Macaulay for $10 million in cash and $5 million in Augusta shares, giving the KCL shareholders about 7.1 percent of the enlarged group. The IPT business is being bought from real estate group Bayley Corp. for $444,000.

The shares gained 4 percent to 79 cents, valuing the company at $64.2 million.

As part of the deal, which is expected to settle on April, Barnett and Hinton will join the Augusta executive team, and Barnett will also join the board.

"The deal is expected to be significantly EPS (earnings per share) enhancing for Augusta Capital," the company said in a statement. "The move brings additional sources of revenue to Augusta alongside trans-Tasman expansion opportunities as a result of KCL Property's Australian business."

Once completed, Augusta will manage about 170 properties, and have some $1.2 billion in funds under management.

Augusta has also entered into a deal with Bayley where the listed company will become the exclusive partner for Bayley for all future funds management initiatives, including managed property offers to the market.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7899 0.0014 0.18%
AUD 0.9095 0.0011 0.12%
EUR 0.6382 0.0007 0.11%
GBP 0.5049 0.0007 0.14%
HKD 6.1272 0.0075 0.12%
JPY 92.9810 0.0950 0.10%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.690 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.710 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5526.9 5526.9 5526.9 -0.56%
NASDAQ 4751.0 4751.6 4701.9 0.24%
DAX 9521.2 9736.1 9484.0 2.62%
DJI 17721.0 17894.8 17719.0 0.51%
FTSE 6678.9 6773.1 6678.9 1.08%
HKSE 23883.3 23883.3 23437.1 1.90%
NI225 17285.7 17381.6 17300.9 0.33%