Augusta buys Christchurch site for $39.5m, plans syndication offering
Augusta Capital [NZX: AUG], the listed property investor and fund manager, has agreed to buy a Christchurch industrial property for $39.5 million from Virgo Group associated with Ashburton investors Mark Holmes and Neil Brown, 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 Rd in Christchurch is leased to General Distributors, a subsidiary of Progressive Enterprises, with a remaining term for 8.6 years.
The site was slightly damaged in the 2010 and 2011 earthquakes but subsequently repaired and significantly enlarged, to become Countdown's regional distriubtion 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 95c, and have increased 2.7% over the past year.
(BusinessDesk with additional reporting from Chris Hutching)