Augusta gets resource consent, funding approval for $19.2m Airways development
Augusta Capital will proceed with a planned $19.2 million development for Airways Corp after getting resource consent and funding approvals for the deal.
The Auckland-based fund manager and property syndicator said it satisfied consent and funding conditions for a new building to house part of Airways' new traffic management platform in Christchurch, with the state-owned enterprise signing up to a 25-year lease on the new building and two existing sites, and a nine-year lease on the remaining building.
Augusta will set up a single-asset fund to raise about $22.8 million for the development, which is expected to be launched by March 29, it said in a statement. Augusta will underwrite $15 million with an unnamed third party underwriting the balance.
"The debt and equity funds the purchase of the property from the existing scheme, establishment costs and an expected development spend of $19.23 million," managing director Mark Francis and chief operating officer Guy French-Wright said.
The property had been owned by an Augusta-managed syndicate, who needed to sign off on the re-syndication proposed for the development. Those investors had preferential rights to invest in the new syndicate.
The shares last traded at $1.07 and have gained 8.1 percent over the past year.