Augusta in red after $2m termination fee
Property company Augusta has posted a small loss arising from the management termination fee to its founder.
Stock Exchange-listed Augusta has posted a $65,000 loss after making a $4.8 million profit last year.
It was the result of a $2m fee to terminate the management contract formerly held by Augusta founders, including Mark Francis.
Property revaluations also shaved $1.38m off the portfolio, mainly related to $4.6m spent on the new Countdown Metro Supermarket in central Auckland.
Rents were also slightly down after asset sales, leaving a distributable profit of $3.7m for the year ending March, 2012 compared to $3.8m the previous year.
During the year the company sold properties worth $8.5m. It still has $3.6m of “non-core” assets to sell.
The funds management business has two offerings under way – the JB Hi-Fi syndicate in Hamilton is fully subscribed, and the Farmers Hastings offer is due for settlement soon.
The company says it is optimistic there will be more offerings during the year.
Chris Hutching
Tue, 22 May 2012
Tue, 22 May 2012
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Augusta in red after $2m termination fee
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